Having a Wyoming LLC is a better and cheaper option than having other business structures. A limited liability company (LLC) reduces the owners’ personal liability and protects their personal assets. One can start an LLC in two ways, domestic LLCs or foreign LLCs (LLCs in more than one state). By following some basic steps, you can easily form an LLC in Wyoming.
On this page, you’ll learn about the following:
- How to Start an LLC in Wyoming
- After Starting your Wyoming LLC
- Wyoming Foreign LLC
- Why an LLC in Wyoming – Wyoming LLC Benefits
- Top 3 Businesses in Wyoming
- Wyoming LLC Formation Review
How to Start an LLC in Wyoming
An LLC or a Limited Liability Company is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. This section gives you a step-by-step guide on how to start an LLC in Wyoming.
Step 1: Decide a Name for Your LLC
Deciding on a business name is the first step to start an LLC. In Wyoming, before you name your LLC, it is important to note a few things. Firstly, make sure the name is available to use. If the name is available, then check if the name complies with all the Wyoming business naming requirements. Once you pass through them, you can successfully name your business.
Why do you need a proper business name?
If you want your LLC to have special identification, your company name is essential. However, many people face lots of issues by avoiding focus on choosing a business name for their LLC business formation filings.
Because of this, here are some of the major benefits of choosing the best LLC corporate names.
- To help establish a company’s presence in the market, a proper business entity type will help you. This also creates a new identity that will resemble your LLC.
- After you’ve properly chosen the name for your LLC, you will have no problems finishing the registration process.
- You can only get the EIN number when you have your name registration certificate with you.
Requirements when deciding a name for your LLC
LLC Name Search: A business name search is required to check if the desired name is available or not. If the name is available then the business owner has to fill up a name reservation form and send it to the Secretary of State, Wyoming. To do the name search, one has to visit the Business Entity Search page on the official Secretary of State website. Send the name reservation form to the below address by mail to reserve your LLC name in Wyoming. The cost of a name reservation is $50.
Important Quick Links:
Wyoming Secretary of State
2020 Carey Avenue, Suite 700
Cheyenne, Wyoming 82002-0020
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Step 2: Assign a Registered Agent in Wyoming
A registered agent is a person/business entity that will act or work on your behalf. This person or business will do things like filing services and receive significant tax forms, legal forms, formation documents, a notice of lawsuits, and other official government correspondence in Wyoming. Choosing a Wyoming registered agent for service of process for your LLC is required.
Make sure your registered agents are residents of Wyoming. It could also be a business with a principal office address. Here are the recommended agents and employees for you:
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Note that availing of the services of professional registered agents would be your best option since you are guaranteed that whoever is handling your legal affairs knows their stuff well. You will enjoy peace of mind and focus only on running your business, as the ‘professionals’ take care of all legal matters.
These LLC formation services are recommended registered agent services as they are authorized to conduct business in Wyoming. Compare them to check the best yet cheapest option for you. Besides, they can guarantee you professional service because they have been in the business for years.
Step 3: File Articles of Organization in Wyoming
A Certificate of Name Reservation is needed to file Articles of Organization, as other states call it. You need to make reports of this certificate with the Wyoming Secretary of State, which costs $100-$102. You may file them online with your email address or by mail through the physical street address.
This Certificate of Formation is a legal document needed to form your business officially. It will indicate details about your LLC in Wyoming, like if it is a member-managed or managers-managed.
Before you start filings, you must already have your LLC name and registered agents or employees. You will attach a copy of your Name Reservation Certificate along with a list of the services that your Wyoming LLC will offer.
How to File Online
Go to the Secretary of State Online Service. Select “non-subscriber.” Fill out the online form. The website will alert you if your county does not support online filings after selecting your principal county. To know more about online filing, visit the Wyoming Certificate of Formation.
How to File by Mail
If you prefer filing real-life forms for your Wyoming LLC registration, then you can download the Wyoming Limited Company Certificate of Formation. Read the form thoroughly and fill it out. It will have to fill, among others, your name, city, state, zip code, and signature. You may also file in person by visiting the office on business days.
Mail To: Wyoming Secretary of State
2020 Carey Avenue
Cheyenne, WY 82002
Step 4: Create Your Wyoming LLC Operating Agreement
An operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
When it comes to an LLC operating agreement Wyoming does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all your details of business operation. This document would be useful if you decide to dissolve Wyoming LLC later.
Step 5: Filing a Wyoming LLC EIN
The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify types of business for tax purposes and taxes in general. It is like a Social Security number dedicated to a business’ taxes. The EIN is necessary for any active business or any form of business for that matter.
To obtain EIN (aka FEIN) one has to fill up a form (Online or by mail) and submit it to the IRS. Before sending the form, ask for EIN Assistant. Enter details of your LLC, and finally complete the form and send it to the address given.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
And that’s all! Congratulation, you are now done with all the necessary steps to form your Wyoming LLC. If you still haven’t used a professional service from here, I strongly recommend having one to handle the remaining tasks.
After Starting your Wyoming LLC
After forming your LLC, there are still some things that you will need. Take note of the following:
- Get a company business bank account
- File Wyoming business permits & licenses
- Get liability for business and professional liability insurance with coverage for employees
- File a Wyoming LLC annual report or biennial report
- Already existing LLCs that wish to operate in Wyoming must register as Wyoming foreign LLC.
This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings to make sure your LLC is up-to-date.
Wyoming Foreign LLC
To register a Wyoming foreign LLC, one has to file the foreign LLC formation certificate with the Secretary of State, Wyoming. Forming a foreign LLC allows you to operate your business in more than one state in the USA as a single business entity. Check Wyoming Foreign LLC to know more about having a foreign LLC.
Why an LLC in Wyoming – Wyoming LLC Benefits
Forming Wyoming LLC saves a lot of money for the entrepreneurs, especially for the foreign LLCs. It has become one of the top states that offer the least burden of tax liabilities for starting an LLC. Also, it offers wide business funding options to startups. Hence, Wyoming is now the favorite business state for small and medium-sized enterprises. Following are the benefits of having Wyoming LLC,
The state provided huge tax credits and benefits to the entrepreneurs. Some of the prominent tax reduction programs are,
- Corporate Tax – LLCs don’t have to pay any corporate tax while operating their business in Wyoming.
- Intangible Tax – For any intangible asset such as investments on bonds, shares, etc., there is one Intangible tax that LLCs have to pay. But in Wyoming, no such tax is levied.
- Personal Income Tax – While operating your Wyoming LLC, you don’t need to pay any personal income taxes to the state government.
- Estate Tax – There is no estate tax in the state. You can live and pass the property on to your next generation.
- Excise Tax – If you are operating a Wyoming LLC, then food, gas, and other necessary products won’t get taxed. No excise tax will be levied.
Freedom in Capitalization
In Wyoming, there is no upper bar for capitalization. That means any Small and medium-sized company can raise a fund of up to $500,000. There’s no upper limit of having capital for the business setup in this state.
Minimum Formation Formalities
Along with tax benefits and low filing fees, the formalities are hassle-free as well. You can finish everything before time if you get one professional service to handle all your work.
Low Risk for Lawsuit
In this state, starting an LLC means one has to register their company with the government. However, there is no rule that you have to register as a manager or a member of the LLC. Hence, there is a shallow risk of getting a lawsuit.
There are several taxes like self-employment taxes, Federal taxes, employee taxes, and many more that are needed to be paid. However, there are tax exemptions to lower down the tax burden more in this state.
- Sales Tax Exemption on Manufacturing – For the specific manufacturing units, sales tax is exempted fully. LLCs or businesses do not have to pay anything to the government.
- Sales Tax on Electricity – Those willing to start Wyoming LLC can enjoy electricity for free until they start their company. There’s no fee to be paid for consuming electricity.
Top 3 Businesses in Wyoming
When you decide to form an LLC in Wyoming, you must have a good knowledge of the state’s economy. First of all, you should know the businesses that are running in the state and their contribution to the state.
Despite a bit of decline in oil and coal production in the state, the mining businesses are one of the top economic contributors. The major coal mine in the state is the Green River Basin and Powder River Basin, with 68.7 billion tons of coal production.
Also, there is a production of 1.77 trillion natural gas in a year in Wyoming that helps in driving major industries in the state. Wyoming is also known to produce Trona used in paper, glass, water softener, and baking soda businesses. The total contribution of the industry is around $4.4billion.
The historical places and monuments of the state have successfully attracted around 6 million visitors to the state. The key attraction to the state is Yellowstone National park and Grand Teton Park that are solely responsible for attracting 4 million people. The sector is giving around $2 billion in revenue to the state GDP.
The tiny state is also known as the cowboy state due to the 1.5 million cows present. Out of all the agricultural receipts, 86% portion is generated by livestock only. Other important elements of the agriculture sector are:-
- Hay production
- Wool products
- Dairy products
The total contribution made by the sector is around $1.08 billion.
Some of the small scale businesses that are well established in the state are:-
- Graphic designing services
- Travelling agency
- Online streaming businesses
Wyoming LLC Formation Review
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Just to recap, here are the easy steps again when forming an LLC in Wyoming. Click on the steps in this list to read the full detail.
- Name your Wyoming LLC
The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
- Choose a registered agent
In Wyoming, it is mandatory to select a registered agent for your LLC. You can check out our list of our 5 Best LLC Services in the United States.
- File a formation certificate
Filing a formation certificate is necessary when forming an LLC. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create operating agreement
An operating agreement is not a strict requirement but something encouraged when you start an LLC.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
If you are a resident of Wyoming, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
Apart from the formation fee of $102 (domestic LLC) and $100 (foreign LLC), LLC costs in Wyoming include $50 for Annual Reports every year. LLCs are liable to pay sales tax of 4% every year
It takes no time (immediately) to get a Wyoming LLC if you file it online. For the mail filing, it takes 5 to 7 business days to get an LLC.
Every year all the LLC have to submit an Annual Report and pay $50 to the Wyoming Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
Generally, for the LLCs, it is a default tax structure. Once you will obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens.
Having an LLC is easier than other forms of business. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. On the other side, the formation of LLCs requires less paperwork and fewer legal complexities. If you have any questions, leave a comment below.