Single-member LLCs in Florida have lost charging order protection in multiple court cases. If you have a Florida LLC with no co-members, a Wyoming parent holding company is not optional, it is the fix.
Wyoming LLC
Wyoming offers the strongest charging order protection in the country, meaning a creditor who wins a judgment against you personally cannot force a sale of your LLC interest or take a distribution from it. The state requires no public disclosure of member names, so the only record is the registered agent, making it a genuine anonymity play for holding companies and asset protection layers. Annual fees are a flat $60 on assets under $250,000, and formation can be done same-day online for roughly $100 to $150 in state fees. The ideal use case is a holding company that owns real estate, IP, or investment accounts in other states, where the Wyoming entity sits as the top layer and never itself does active business in a state that would trigger foreign registration.
Florida LLC
Florida is the right choice when you are operating an active business in Florida, have Florida customers, or need local bank accounts and commercial leases that require a domestic in-state entity. Formation runs about $125 in state fees, but Florida requires an annual report filed each year between January and May with a $138.75 fee, and late filing costs an additional $400 penalty. Florida's charging order protection is weaker than Wyoming's, particularly for single-member LLCs where courts have historically been willing to pierce the charging order remedy and allow creditors broader remedies. If you are a Florida resident running a Florida-based business, the foreign registration hassle of a Wyoming LLC often outweighs the privacy benefit.
Using Both in a Two-Layer Structure
The most effective domestic structure pairs a Wyoming LLC as the parent holding company with a Florida LLC as the operating entity beneath it. The Florida LLC does the business, signs contracts, and holds the bank account. The Wyoming LLC owns the Florida LLC's membership interest, keeping beneficial ownership off Florida's public records. A creditor who sues the Florida operating company can only reach the assets in that entity. A creditor who sues you personally is left holding a charging order against the Wyoming parent, which under Wyoming law gives them no right to force distributions or seize the underlying assets. Total setup cost for both entities combined typically runs $400 to $600 in state fees, plus registered agent fees in each state of roughly $100 to $150 per year per entity.
Things people ask first.
Can I form a Wyoming LLC if I live in Florida?
Yes. There is no residency requirement to form a Wyoming LLC. You will need a Wyoming registered agent, which typically costs $50 to $150 per year, and if that Wyoming LLC does business in Florida, you will need to register it as a foreign LLC in Florida for an additional $125 fee.
Does Wyoming LLC anonymity hold up if I do business in Florida?
Partially. Wyoming keeps member names off its own public records, but Florida's foreign LLC registration requires a registered agent in Florida and a principal address. If the Wyoming LLC stays a passive holding company and the Florida operating LLC does the active business, the anonymity layer holds up much better.
Which state is better for a real estate holding company?
Wyoming is the standard choice for a real estate holding company because of its charging order protection, low annual fees, and privacy. Each property or property group is often held in its own Florida or local-state LLC, with a Wyoming LLC sitting above them as the parent, so liability stays siloed at the property level.
Is there a tax difference between Wyoming and Florida LLCs?
Neither Wyoming nor Florida imposes a state income tax on LLC income, which is one reason both states are popular. The tax treatment of the LLC itself, pass-through vs. corporate, is a federal election and works the same regardless of which state you form in.
Can a creditor see that I own a Wyoming LLC?
Not from public records alone. Wyoming does not require member or manager names in any public filing. A creditor with a judgment can pursue discovery in litigation to uncover ownership, so Wyoming anonymity is a friction barrier, not absolute invisibility.
How long does it take to form each type of LLC?
Wyoming offers same-day online formation in most cases. Florida typically processes in one to three business days online, or five to seven business days by mail. Expedited Florida processing is available for an additional fee.
Want the full domestic and offshore layering strategy, not just the state comparison?
The Offshore Playbook covers how Wyoming and Florida LLCs fit into broader structures that include offshore holding companies, foreign bank accounts, and trust layers. If you are serious about asset protection, the domestic piece is only one part of the architecture.
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