Continuance is a unique Wyoming corporate rule that you need to know about. Through the process called continuance, the State of Wyoming allows a corporation, limited liability company or limited partnership to domicile in the State of Wyoming as if it had been organized there initially. Say you have great corporate credit and a good business history. You don't want to lose these benefits but at the same time you are sick of your home state's taxes. By filing what is termed the "Articles of Continuance" with the State of Wyoming, your existing entity can redomicile in Wyoming without losing a beat.

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 on upon the type of claim being asserted. For instance, the statute of limitations in many states is six years for asserting a claim on a written contract, and four years for an oral contract. So if your business made a blunder, you could be held accountable for it, several years after the fact. Thus, it is important to maintain your entity for at least as long as the longest applicable statute of limitations. If you are thinking of closing shop, go ahead, but keep your entity active in the low annual fee sate of Wyoming. Let's look at an example.

Tom had owned and operated Ajax Construction, Inc. in Illinois for nearly twenty years and he was ready to retire. He knew that with a corporation there were some steps he needed to take before he closed shop, so he made an appointment with his attorney to ask about the best way to wind things up. Among the recommendations his attorney gave, Tom was informed that the statute of limitations in Illinois for construction issues could be ten years. Thus, Tom needed to keep his corporation active for ten years after he stopped working. Because it was a Illinois corporation, this was going to cost Tom $500 per year. Tom was understandably aggravated about this - after all, he was trying to retire. Tom, however, had a good attorney. After explaining the situation to Tom, he offered a solution to the financial drain of Illinois fees. Tom could continue his company into Wyoming. By continuing Ajax Construction, Inc. into Wyoming, Tom could maintain his limited liability status without a break and get away from Illinois' high rates. Wyoming would charge him only $50 annually. That means Tom could leave his corporation intact for ten years for $500 rather than $5,000! Tom gave his attorney the go-ahead to complete the necessary paperwork and retired a much relieved entrepreneur.

It should be noted that, as is typical, California is difficult in this regard. They won't allow you to continue into Wyoming. Instead, you have to form a new Wyoming entity to merge with your old California. When the merger is complete the California entity goes away, but the new Wyoming entity does not have the old California incorporation date. Still, you are better off implementing this strategy and saving the $800 annual California fees than not taking these steps.