Wise (formerly known as TransferWise) is a global financial technology company that specializes in offering affordable and transparent international money transfers and multi-currency accounts. It simplifies cross-border payments by reducing fees and providing better exchange rates compared to traditional banks.
Key Features of Wise
- Low-Cost International Transfers
- Wise charges lower fees compared to banks and offers exchange rates without the hidden markup.
- You see the exact cost of the transfer before completing it.
- Multi-Currency Account
- Hold, manage, and convert money in over 50 currencies.
- Receive local bank account details (e.g., USD, EUR, GBP, AUD) to receive payments as if you were a local.
- Transparent Fees
- Wise is known for transparency. You always see the fees upfront and the exchange rate you’ll receive.
- Fast Transfers
- Many transfers are instant or completed within a few hours, depending on the currencies and banks involved.
- Business Services
- Wise offers a business account for companies to manage multi-currency transactions, pay international employees, and handle invoices efficiently.
- Debit Card (for Individuals and Businesses)
- Wise offers a debit card linked to your account, allowing you to spend globally with low conversion fees.
Who Uses Wise?
- Individuals: Sending money to friends and family abroad, managing international payments, or converting currencies for travel.
- Freelancers & Entrepreneurs: Receiving payments from international clients, especially in their local currencies, without hefty bank fees.
- Businesses: Handling cross-border transactions, paying vendors, and managing payroll for international employees.
How Wise Works
- Set Up an Account: Create an account (individual or business) on their website or app.
- Send or Receive Money: Add the details of the transaction, whether you’re transferring money or receiving payments.
- Fee Transparency: Wise shows the exact fee and exchange rate before proceeding.
- Processing: Wise processes the payment through their global network to minimize costs.
Why Choose Wise?
- Cost-Effective: Much cheaper than banks for international transfers.
- Speed: Many transfers are completed faster than traditional wire transfers.
- Multi-Currency Convenience: Ideal for freelancers, businesses, and travelers dealing with multiple currencies.
- Trustworthy: Wise is regulated in multiple jurisdictions and is a reliable platform with millions of users worldwide.
In short, Wise is a modern alternative to traditional banking for anyone looking to save money and time on international transactions.
Here’s a complete guide to setting up Wise (formerly TransferWise) with a Wyoming LLC to manage your business finances efficiently.
Step 1: Form Your Wyoming LLC
- Choose a Name for Your LLC
- Ensure the name is unique and complies with Wyoming state rules.
- Verify availability on the Wyoming Secretary of State website.
- Register Your Wyoming LLC
- File Articles of Organization with the Wyoming Secretary of State.
- Include your LLC name, registered agent information, and mailing address.
- Pay the filing fee (usually $100).
- Appoint a Registered Agent
- You must have a registered agent in Wyoming to receive legal and tax documents.
- You can use a service provider or act as your agent if you meet the requirements.
- Obtain an EIN (Employer Identification Number)
- Apply for an EIN online through the IRS website.
- The EIN is essential for setting up a Wise account.
- Operating Agreement
- Draft an LLC Operating Agreement (not mandatory in Wyoming but recommended for clarity on ownership and operations).
Step 2: Prepare for Your Wise Account
- Documents Required
- Proof of LLC registration (e.g., Articles of Organization or Certificate of Formation).
- EIN Confirmation Letter from the IRS.
- Proof of the business address (utility bill, bank statement, etc.).
- Valid identification for the account holder (passport or government-issued ID).
- Business Bank Account (Optional)
- Although not mandatory, having a business bank account can simplify verification.
- Use your Wyoming LLC’s EIN to open a business account.
Step 3: Create a Wise Business Account
- Sign Up for Wise Business
- Go to Wise Business and click Sign up.
- Choose the business account option.
- Complete Business Information
- Provide details such as your Wyoming LLC’s name, address, EIN, and industry.
- Verify Your Identity
- Upload a copy of your passport or government-issued ID.
- Take a selfie or complete other verification steps as prompted.
- Upload Business Documents
- Provide proof of your Wyoming LLC’s formation and EIN.
- If asked, submit additional documentation (e.g., Operating Agreement or proof of address).
Step 4: Link Your Wise Account to Payment Platforms
- Add Bank Details
- Add your Wise USD account details (or other currency accounts) to platforms like PayPal, Stripe, or Amazon.
- Wise supports multi-currency accounts, enabling you to receive and send payments globally.
- Configure Payment Settings
- Set up automatic withdrawals or transfers to your Wise account for streamlined cash flow.
Step 5: Optimize Wise for Your Wyoming LLC
- Use Multi-Currency Features
- Open multiple currency accounts to manage international payments.
- Reduce foreign exchange fees when transacting globally.
- Generate Invoices
- Use Wise to create and send invoices in different currencies.
- Share your Wise account details with clients for direct payments.
- Integrate Accounting Tools
- Connect Wise to platforms like QuickBooks or Xero for seamless bookkeeping.
- Track expenses, revenue, and currency conversions easily.
Step 6: Maintain Compliance
- Annual Reports
- File an annual report for your Wyoming LLC with the Secretary of State.
- Pay the annual fee (around $50).
- Taxes
- While Wyoming has no corporate income tax, you may need to file federal taxes.
- Consult with a tax professional familiar with LLCs and international transactions.
- Update Records
- Keep your LLC’s details up-to-date with Wise, including address and ownership changes.
Tips for a Smooth Setup
- Check Wyoming-Specific Rules: Ensure your LLC complies with Wyoming’s state laws for foreign or online operations.
- Use a Virtual Address (if needed): If you don’t reside in Wyoming, consider a virtual office for your LLC’s business address.
- Stay Organized: Keep copies of all documents submitted to Wise and Wyoming authorities.
By following this guide, you’ll be able to efficiently set up and operate a Wise account for your Wyoming LLC, enabling seamless management of domestic and international transactions.