Posted by Andy on April 25, 2002 at 18:31:33:
Thanks for your reply John. Some follow-up questions:
So I think you are saying that that the tax advantage, Wyoming law allowing, would be that the net income on notes held by the company in Wyoming, could be subject to no state income tax. However, the rest of the deal would still be subject to Illinois state tax. Just because you are incorporated in Wyoming, you still have to pay taxes in Illinois where you are conducting real estate transactions. Correct?
You are also saying that the IRS can subpeona and audit the company records at will. Correct?
As far as liability protection goes: if I am a shareholder of the company, signing “as President” on contracts executed in Illinois, would the suitor and their lawyer come directly to me and depose me? Would this not eliminate the benefit of the non-reciprocity position of Wyoming corporate info sharing (under the assumption that they have this stance)? Or are there other significant financial/administrative hurdles that would provide a barrier from the legal actions?
Thanks in advance!