Starting up an Ecommerce Business? Set your HQ in Wyoming, USA. Here’s why.
With all that’s been happening over the last few years, with FATCA contracts between the US and former offshore havens, this might be the last place a foreign business owner would consider incorporating in. It’s understandable why a US state is the last thing a non-US citizen would consider setting their ecommerce business up in. However, ignoring the US as a place to set up HQ would be a big mistake.
Although the US is cracking down on their own citizens through FATCA agreements, they themselves have proven to be less than cooperative in disclosing financial information with foreign tax authorities. Many developed and developing countries have now agreed to share financial information with each other by signing Common Reporting Standard (CRS) agreements.
US not on board with reporting financial activities stateside
The US has not signed any CRS agreements set by the Automatic Exchange of Information, to date. Meaning they’re now one of the best places to invest and register a business offshore for non-US citizens. Wyoming, in particular, has proven itself a worthy destination for those looking to set up a small business, which includes ecommerce business.
We’ll delve into why in just a moment, but let’s first look at why the IRS feels it prudent to police the foreign banking activities of its citizens, yet turns a blind eye to foreign businesses incorporating on their shores.
Quite simply, the more foreign money that’s invested in their banks, the more it benefits US citizens. Incorporating and investing your money in low or no tax states like Wyoming only helps to bolster the job market via lower unemployment numbers, and provides funds for infrastructure development. FATCA is their answer to the Microsofts, Amazons, and Apples of the world hiding their wealth overseas. Of course, they also want to keep track of the little guys (individuals), but one has to consider the wealth contained on US shores to get the big picture:
- The USD controls the global currency market (all global currency is tied to the US dollar). This is because the United States is the richest country in the world, by far, and has been since the collapse of Europe in WWII.
- Despite not being the most populous country, the US’s gross domestic product is the highest on the planet with 23.3% of the world’s GDP. Compare this with the second richest, and world’s most populous country, China, who only holds 16.1% of the global GDP.
- Reading this table, it should be obvious no other country comes close to the wealth held by those two countries, including poverty-stricken India, who trails just behind China for world population numbers and has nearly a billion more citizens than the US.
- Despite their economic ranking, the United States also has the highest global debt-load, meaning the more foreign dollars coming in, the more stable their economy will remain, despite how much they owe other countries.
5 reasons to incorporate an ecommerce business in Wyoming
Now that we understand why the US has such a vested interest in protecting foreign wealth held within its borders, it’s time to look at why Wyoming is such a great place to incorporate your ecommerce business.
“Why not Delaware?” you ask. Well, Delaware is often touted as the best place to incorporate if you’re looking to attract big investors to your business, due to their corporate business-friendly legal system. However, for an ecommerce startup, Wyoming offers the biggest savings, while FATCA won’t apply to you as a non-US citizen, and the United States, as mentioned, doesn’t participate in CRS with any country.
Here are the main five reasons to set up your HQ and business registration in the state of Wyoming:
It’s worth mentioning you can operate your Wyoming-based ecommerce business in complete secrecy for now. Directors and shareholder’s information won’t appear on your Wyoming public business records, meaning your identity will never be exposed.
2. Fewer startup costs
Wyoming has the lowest population of any state. This makes it important for state and local legislators to make doing business in Wyoming as inviting as possible to help grow the state’s wealth and lower unemployment. Business registration costs are pennies-on-the-dollar over many of the other states. Best, there’s no minimum capital requirements for foreign-owned businesses.
3. Fast approvals
It can take as little as 3 days to get approval from the state, after obtaining a Wyoming business bank account and filing for incorporation on the state’s website, or whichever intermediary you choose to file on your behalf.
4. Easy banking process
Wyoming doesn’t require you to open a bank account in person. The entire process can be completed quickly online, meaning you can have your ecommerce business up and running in just a few days, without having to book a flight and accommodations to the state just to iron out the details of your LLC.
5. No income taxes
Who among us would love it if we never had to pay business or personal income taxes? It would be illegal to suggest you hide assets obtained through your business from your country’s tax authority (if your country collects income taxes). However, with no CRS commitments in place throughout the United States, feel free to draw your own conclusions about the potential tax saving benefits.
The state of Wyoming doesn’t collect income taxes, and given they’re driven toward increasing their population numbers, it’s safe to say this will be reality for years to come.
The United States has a vested interest in attracting foreign wealth into their business and banking system for all the reasons you’ve read about above. When considering Wyoming over other states their zero tax obligations, privacy laws, low startup costs, online bank account setup, and fast approval process, it’s a no-brainer they’re the perfect state to set up your ecommerce HQ.Learn more about company formation in Wyoming here.