Wyoming Continuance

So you like the benefits offered by Wyoming? Are you interested in moving your entity to Wyoming? You can by using “continuance”.

Continuance is unique to Wyoming. Through the process called continuance, Wyoming allows a corporation or limited liability company to domicile in this state as if it had been organized there initially, so there is no break in corporate status. By filing Articles of Continuance with the state of Wyoming, an entity can easily take advantage of this legal fiction.

If you have formed an entity in a state whose laws you now realize are not advantageous, continuance provides an easy remedy. The filing fee for the Articles of Continuance is $100, the same as for filing articles of organization or incorporation for a new entity. Yet you will not have a new entity, but one with history because you will retain your original date of existence. This is especially important if your existing corporation has a good credit history. By continuing in Wyoming, your good corporate credit can also be continued because you get to keep your existing EIN number.

There are many advantages to being able to relocate your business to a friendlier state. One important benefit that many business owners do not consider has to do with the statute of limitations. All lawsuits have time limits. The statute of limitations refers to the legal deadline by which a lawsuit must be filed. These deadlines vary based upon the type of claim being asserted.

For instance, the statute of limitations in many states is ten years for asserting a claim on a written contract, and eight years for an oral contract. So if your business made a blunder, you could hear about it and be held accountable for it several years after the fact.

In order to keep your assets protected it is important to maintain your entity for at least as long as the longest applicable statute of limitations. So if you are thinking of closing up shop, go ahead, but keep your entity active in a low annual fee state such as Wyoming.