Nevis LLC vs. Wyoming LLC: which actually protects you?
Short answer: both states give you a charging-order-only remedy, but a Wyoming LLC is still a US entity subject to US courts. A Nevis LLC isn't. For protection against a serious future creditor, Nevis is the stronger structure. For low-cost domestic holding, Wyoming is usually enough.
The charging order: a draw
In both jurisdictions a creditor who wins a judgment against you can't take your membership interest. They receive a charging order, a right to any distributions the LLC chooses to make. Both statutes apply this to single-member LLCs, which isn't true everywhere in the US.
Where Nevis pulls ahead
1. The creditor bond
To sue a Nevis LLC, a creditor must first deposit a bond, in an amount set by the Nevis High Court. Wyoming has no equivalent. The bond alone ends many speculative claims before they start.
2. The limitation period
Fraudulent-transfer claims against a Nevis LLC must be brought within two years of the transfer. In Wyoming the general window is four years.
3. Full faith and credit
This is the decisive difference. A judgment from a Texas or California court must be honoured in Wyoming under the US Constitution. It doesn't bind a Nevis court, so the creditor has to start again: hire Nevis counsel, post the bond and prove the case under Nevis law.
A Wyoming LLC protects the asset. A Nevis LLC protects the asset and sits outside the reach of the court that issued the judgment.
| Provision | Nevis | Wyoming |
|---|---|---|
| Charging order exclusive | Yes | Yes |
| Creditor bond | Yes, set by the High Court | None |
| Limitation period | 2 years | 4 years |
| US judgments enforced | No | Yes |
| Formation cost (typical) | From US$1,550 | Under US$500 |
When Wyoming is the right answer
- You're holding US rental property that a US lender or title insurer must deal with
- Your risk profile is modest and cost matters more than maximum protection
- You need a US bank account opened quickly
Many clients use both: a Wyoming LLC to hold the US property, owned by a Nevis LLC or Nevis trust above it.
Tax: no difference
Neither structure changes a US person's tax bill. A Nevis LLC is reported on Form 8858 or 8865, and its accounts on FBAR and Form 8938. See our compliance standard.
