Wyoming VS New Mexico LLC: Do I really need the asset protection?

[RonaldVaughan]

I am starting an e-learning website where I will sell courses.

I am an Indian‌ Citizen, living in India and Stripe has some limitations in my country.
I am looking‍ to set up an LLC in the US primarily to accept payments from Stripe in⁠ my website.

I am considering setting up a Single Member Non-Resident LLC is Wyoming or⁤ in New Mexico. I plan to transfer all the money to my personal bank account⁣ in India every 30 days.

My understanding is that New Mexico is cheaper (registered agent⁢ $35/year and $50 to open an LLC with no yearly filing fee).
Wyoming has much︀ better asset protection (charging order as sole remedy) but will cost $50 a year to︁ maintain + around $50/y for a registered agent.

I am wondering if I will really︂ benefit from the asset protection offered by Wyoming since I am not a US citizen︃ nor am I living in the US.
Can someone from the US sue me personally︄ for my personal actions even though I am in India that puts my US LLC︅ assets at risk? In other words can I have any outside liability in the US?︆

Does it make sense to have a Wyoming LLC for my use case?

 

[orangeye]

that's one of the very rare but good questions asked here,⁠ thread bookmarked, hope someone can help.

 

[hapiswood]

does anyone have any answer for this? fill word count

 

[forlac]

why should it not?
give the local SoS a call, you can also leave a‌ message.

 

[uplana]

You can search the forum for similar question asked during the⁠ last year or so. There is no asset protection for people living in India or⁤ anywhere else with a US LLC alone, it requires a more complicated setup. You will⁣ get reported, not by the company registration agent but by the bank or EMI you⁢ will be using to open an account.

Once the account is opened they will know︀ about it in India, the consequences of what it means for someone living in India,︁ I don't know.

However, for someone that is shopping around for a product below 100$,︂ I think there is not really a need for asset protection, so there is no︃ risk to hide your 500$ in the LLC.

 

[forlac]

So you mean there have to︂ be a holding structure or what exactly with "complicated setup"?
For me I want to︃ protect my domain assets, which are difficult to valuate, today and in near future.

But I will search for your referring posts from last year the next days, when I︄ do proper research again, thanks for pointing it out.

 

[RonaldVaughan]

I am not creating a LLC︂ in the US to hide my assets. I am doing it to collect payments from︃ Stripe.

My question was is there any benefits of having a Wyoming LLC over New︄ Mexico LLC. You seem to suggest there are no differences especially if I live in︅ India. So I might as well go for New Mexico LLC which is free to︆ maintain.

 

[sujoe]

NM LLC has⁣ a higher chance of getting rejected by Stripe or bank

 

[kranj99]

My experience is that if you are non-US resident (i.e you don't have an SSN‌ in your name) and you set up a US LLC in any state (with full‍ compliance like EIN etc.), sometimes the payment processors reject you. I mean first they may⁠ approve you and then a few months later, Stripe, Paypal etc. just out of the⁤ blue suspend your account and ask you for new compliance documentation (i.e. personal tax records⁣ etc. - things that you cannot have if you are not a US resident).

 

[uplana]

what about Stripe / Atlas it's their own program where they incorporate your business in‌ Delaware, they are handling everything and let you process payments this way?

 

[forlac]

can you proof this by reference?

 

[sonato]

+1 here

Also I‌ believe you can use such type of entities in the US for a wide range‍ of services to be sold. Asset protection, I believe it is not very common that⁠ you succeed in case the tax man is chasing you.