Wyoming is such a popular place to start a business, we often field questions about Wyoming LLCs. Thanks to a business owner in Wyoming for this one!
LLC-owned LLCs are common in the business world. But what if the LLCs are in the same state? Here’s what to know about LLC-owned LLCs in Wyoming:
What is an LLC-owned LLC?
It’s exactly what it sounds like: a limited liability company that’s own by another limited liability company. Weird as that may seem, the rules governing LLC ownership don’t preclude business entities from owning LLCs—even if they, too, are LLCs. Many people form LLCs in Wyoming for this very reason (to own another LLC), because Wyoming’s statutes do not require business owners to include identifying information when filing Wyoming LLC Articles of Organization.
For instance, if you’re forming a business in a state that requires you to provide your name and/or address when filing your formation documents, your name and/or address will become part of the public record. If your business is owned by a Wyoming LLC, however, the company’s name and address would be listed instead of your own.
Read more here: Why Create an LLC Owned by an LLC?
Can a Wyoming LLC own another Wyoming LLC?
Yes. There are very few restrictions when it comes to LLC ownership. While it might seem strange for an LLC to own another LLC in the same state—especially in a state that already affords a lot of privacy—this business structure is also useful for asset protection. In this sense, the LLC that’s in the ownership position can function like a holding company for the LLC it “owns.” This works much like a Wyoming Series LLC, in which one LLC essentially owns smaller LLCs (known as “series”), all of which are protected from one another when it comes to liability.
How do I form a Wyoming LLC owned by a WY LLC?
Forming a Wyoming LLC that’s owned by another Wyoming LLC is actually pretty simple, in part because you won’t have to name your LLC owner in your articles of organization. You will, however, have to list the name of your LLC owner (i.e. member) in your Wyoming LLC Operating Agreement. So, if your LLC is owned by another LLC, you’ll simply include the name and address of that business.