How to Start an LLC in Wyoming
All LLCs in Wyoming must pay the $100 domestic formation fee. There are other steps to consider, all of which are explained right here.
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The Cowboy state is a great place for new business owners. This is thanks to its friendly tax policies and strong protections for business and personal assets.
However, setting up an LLC in Wyoming isn't as quick as just submitting some paperwork to the Secretary of State. There are several important steps to follow when starting your LLC, and even more to consider after it's up and running.
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If you're planning to hire a registered agent or attorney, they could do everything for you. But if you're thinking of doing it yourself, keep reading for a guide on how to do it.
Detailed Steps to Forming an LLC in Wyoming
Forming an LLC in Wyoming goes beyond filing the Articles of Organization. As you'll learn below, it isn't even the first step.
There are a few things you must do before filing the Articles of Organization to the Secretary of State.
No one can start an LLC in Wyoming for free. Other states have rules that waive filing fees for veteran-owned LLCs, but there is no such exemption in Wyoming.
Name Your Wyoming LLC
Cost: $60 Name Reservation (Optional)[1]
When filling up the formation documents, you'll be asked to write the desired name for your LLC. This means you need to think of a business name first.
When deciding on a business name, it's important to conduct a Wyoming business name search to check whether or not your business name is available.
Additionally, you must review Wyoming's detailed list of naming regulations to prevent your LLC formation application from getting rejected. For example, the name can't suggest that your LLC was formed for a purpose different from its real business purpose.[2]
If you've already got a business name but you're not yet ready to form an LLC, you can reserve your desired name first. Paying the $60 name reservation fee will prevent others from using that name for 120 days.
Business names that start with the letter "A" must submit name availability requests in person to the Secretary of State. Your application will undergo a manual review according to Wyoming's business name rules. Examples include A.B. Coffee LLC and A Very Merry Christmas Shop LLC.[2]
Appoint a Registered Agent
Cost: Up to $400/year
Another piece of information that will be asked in the LLC formation documents is your registered agent's full name and Wyoming physical street address. This means you'll need a registered agent before applying to form an LLC.
A registered agent is responsible for receiving business and legal documents on behalf of your LLC. This includes government notices, tax forms, and annual reporting forms.
You can be the LLC's registered agent as long as you're at least 18 years old and have a physical street address in Wyoming. You must be available to receive documents during regular business hours.
Alternatively, you could hire a registered agent service to avoid putting personal details on the public record. In Wyoming, your registered agent can also be the LLC organizer on record. This allows you to form an anonymous LLC because you won't have to put your name in the Articles of Organization at all.
Some registered agent services like Northwest Registered Agent and LegalZoom also offer additional services to help you form and maintain an LLC. This will cost more annually, but the idea is to let other people do smaller tasks so you can focus on growing your business.
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You'll need to get a person's consent before appointing them as a registered agent. The consent form is attached to the Articles of Organization form.[3]
File the Articles of Organization
Cost: $100 (Domestic LLC)[4] | $150 (Foreign LLC)[4]
Now that you have a desired business name and registered agent, it's time to file the LLC's formation documents. Commonly called the Articles of Organization, this document contains important information about your LLC including:
- LLC name and business address
- LLC Organizer's name and contact details
- Registered agent's name and address
- Signed Consent to Appointment by Registered Agent form
Unlike other states, Wyoming does not require the names of LLC owners to be included in the Articles of Organization. If your registered agent service also offers to be the LLC Organizer, your identity can remain anonymous.
The formation fee is payable to the Secretary of State. There's a $2 convenience fee for online payments.[5] The registration process could take up to 15 days and there's no expedited service. Once you get an approval notice, congratulations, you have now formed an LLC in Wyoming.
When filling up the Articles of Organization, you have the option to tick a checkbox that allows your LLC to be a Close LLC.[3] What this means is that existing members cannot sell their shares of the business to just anyone else. It's ideal for family-owned businesses. In that case, the choice to form a Close LLC should be discussed between you and other members.
Additional Steps After Forming an LLC
There are more things to do after receiving the approved Articles of Organization. You need to get your business up and running while staying compliant with state rules.
Aside from the annual $60 minimum license tax, the total cost of a Wyoming LLC after formation varies depending on the nature of your business. Periodic renewals of business permits, licenses, and a registered agent service (if any) could affect the total cost.
Review the Articles of Organization
Cost: $60 (Statement of Correction)[6]
After your Wyoming LLC application is approved, your next focus should be on maintaining its good standing over the long term.
Get a copy of the approved formation documents and review all the details carefully. If there are errors, like a misspelled business name or incorrect address, correct them as soon as possible by filing the Statement of Correction.
If your Articles of Organization aren't correct, you might not receive important time-sensitive legal documents. Additionally, it could affect your ability to get a Wyoming Certificate of Good Standing.
If your LLC is in bad standing, file any unsubmitted annual report and settle outstanding fees or taxes. Then, submit a Certificate of Reinstatement along with the $100 fee to the Secretary of State.[7]
File a Beneficial Ownership Information
Cost: FREE
The Beneficial Ownership Information (BOI) report is a new requirement introduced by the Corporate Transparency Act of 2021. It's submitted to the Financial Crimes Enforcement Network (FinCEN) as part of efforts to reduce financial crime in the U.S.
The BOI report includes detailed information about the LLC's beneficial owners, including name, birth date, and address. Don't worry, this information won't be disclosed to the public.
You are considered a beneficial owner if you own 25% or more of the ownership interests in your LLC or if you exercise substantial control over the LLC. The BOI report's due date depends on when your LLC was formed:[8]
- LLCs formed before January 1, 2024: The BOI report is due on January 1, 2025.
- LLCs formed on or after January 1, 2024: The BOI report is due within 90 days after the date your LLC was formed.
- LLCs formed on or after January 1, 2025: The BOI report is due within 30 days of company formation.
Failing to file the BOI report or filing it late can result in significant penalties. This includes paying civil fines of up to $500 per day.
If any of the information reported on your BOI report changes, you have 30 days to report the changes.[8]
File a Trade Name
Cost: $100 (Application for Registration of Trade Name)[9]
A trade name allows your LLC to operate under a name different from its official registered name. It's also called a Doing Business As (DBA) name or a fictitious name in other states, but they all function similarly.
For example, if "Tim Jones Enterprises LLC" wants to do business as "Tim's Cafe," the latter would be the assumed business name. It's ideal if you want to operate under a business name that is more marketable or doesn't have an "LLC" at the end.
You can file a trade name in Wyoming after your LLC is formed. The processing time can take up to 15 days, and no expedited service is available. The renewal fee for trade names in Wyoming is $50 and must be done every 10 years.[9]
Paying the $100 trade name fee for your LLC in Wyoming doesn't prevent others from using confusingly similar brand names. You need to register a trademark for that.
The USPTO filing fee is $250.[10] You must also calculate additional costs like attorney fees and filing in multiple classes of goods/services.
Create an Operating Agreement
Cost: Up to $500+
Wyoming does not require LLCs to have an Operating Agreement. However, it's recommended to have a legal document that details important rules for managing the LLC. It defines the roles and responsibilities of the members and helps solve any business disputes that may arise later on.
Ideally, you must already have a signed Operating Agreement before applying to form an LLC. It may not be the best decision to start a business before agreeing on things like member responsibilities, voting protocols, and daily operation procedures.
But if your LLC is already formed, you can always make one. You can create an Operating Agreement for free by using templates online. Alternatively, it could cost upwards of $500 if you hire an attorney.
Without defining how to handle disagreements, resolving any conflicts that arise between members could be difficult and costly. You have to follow Wyoming's default rules, which may not always be beneficial to the business.
Get an Employer Identification Number
Cost: FREE
An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS). This number is used to identify a business entity for tax-related purposes.
You're not required to get an EIN if you're operating a single-member LLC in Wyoming. However, you might still need it down the line if you want to hire employees or open a business bank account.
Applying for an EIN online is only available for US citizens with Social Security Numbers. Non-citizens can still get one by mail or fax. Just fill out Form SS-4 and provide additional documentation to verify your identity and foreign status.[11]
Get Required Business Permits and Licenses
Cost: Up to $1,000+
Wyoming does not have a general state-level business license. Instead, Buffalo state prefers leaving business licensing requirements to local jurisdictions and specific industries.
Before officially offering your products and services to the public, you must first get the permits and licenses required for your business. This includes:
- Sales Tax Permit - Selling goods and collecting sales tax.
- Food Handler Permit - Selling or handling food in any way.
- Building Permit - Construction and renovation businesses.
- Liquor License - Serving or selling alcoholic beverages.
- Occupational License - Professional services like dentistry and barbershop.
Additionally, the number of permits and licenses your LLC needs depends on its business purpose. Some businesses may be regulated simultaneously by various governmental offices, racking up total costs to over $1,000.
Failure to secure the necessary business permits and licenses for your LLC may result in huge penalties or business closure.
There isn't a single, comprehensive website or resource that lists all available permits and licenses for businesses in Wyoming. Reach out to the Wyoming Secretary of State or ask a lawyer to ensure you comply with all necessary licensing requirements.
Open a Business Bank Account
Cost: FREE
An LLC provides limited liability, meaning personal assets (like your home and car) are protected from business debts and liabilities. However, mixing personal and business finances in one bank account can weaken this shield.
If you can't clearly distinguish between personal and business transactions, a court might hold you personally liable for business debts. A separate business bank account creates a clear separation of personal and business finances.
Opening a bank account for your LLC must be done in person by someone who has the authority to do so. You can give someone this authority in your Operating Agreement and Initial Resolution.
Don't forget to bring a Certificate of Good Standing, which is commonly required by banks. Wyoming offers free certificates of good standing. You can get them instantly online.
Create a Website and Social Media Accounts
Cost: $20 to $30
A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.
Even if you're not planning to build a business website now, it's a good idea to at least buy the domain name. This prevents others from using your LLC's name as a web address.
Domain squatters often monitor newly registered LLC names. They purchase corresponding website domains and then resell them at significantly higher prices.
Maintaining an LLC in Wyoming
Once your LLC's business permits and licenses, bank accounts, and website are sorted, it's time to understand the post-formation responsibilities that you'll need to do through the years.
In the following years, there are additional but equally important steps to keep a Wyoming LLC in good standing. Here are some of them.
All LLCs in Wyoming must pay at least $60 for the annual license tax.[4] Aside from that, the cost of maintaining an LLC varies depending on insurance premiums, business taxes, and other annual expenses.
Use the calculator below to get a clear picture of your ongoing expenses.
File an Annual Report
Cost: $60 or 0.02% of total assets[4]
Wyoming LLCs must submit annual reports to the Secretary of State each year. There's a corresponding filing fee, which is also called an annual license tax because paying it serves as a continuation of your good standing with the state.
The annual report fee or annual license tax varies depending on the total value of your LLC's assets. At a minimum, you'll have to pay $60. But if 0.02% of your LLC's total assets is a higher amount, you pay that percentage.
The annual report and fee are due on the first day of the month your LLC was formed. If your LLC was formed on March 24, 2024, they're due on March 1, 2025. You can pay online with an additional convenience fee. An annual report fee of more than $500 must be paid in person.[12]
There are no late fees if you fail to file the annual report or pay the tax by the due date. However, the Secretary of State might close your LLC if you fail to settle everything within 60 days after the due date.
Amend Your LLC Details as Needed
Cost: $5 (New Registered Agent)[4] | $60 (Amendment)[4]
Your Wyoming LLC's Certificate of Organization contains specific details about your business. If these details change, you'll need to submit a Certificate of Amendment to the Secretary of State.
File a Certificate of Amendment if you:
- Add, remove, or change an LLC member or manager
- Update your LLC's business address
- Modify your LLC's stated business activities
To change your Wyoming registered agent's details, file an Appointment of New Registered Agent and Office form with the Secretary of State along with the $5 filing fee.[4]
Pay Taxes
Cost: 4% Sales Tax | 15.3% Federal Tax
Wyoming has a 4% statewide sales tax, which applies to the sale of most goods and services within the state.[13] This is the base rate for all businesses that must collect and remit sales tax.
In addition to the state rate, some cities and counties in Wyoming can add their own local sales tax on top of the 4%. The amount varies depending on the specific location. You need to check with your local authorities to determine if any local taxes apply to your business.
Lastly, LLC members who are considered self-employed must pay the 15.3% federal self-employment tax.[14] This tax covers Social Security and Medicare contributions.
Consult with a tax advisor to determine the specific taxes that apply to your business. A qualified accountant could charge $300 yearly for a simple tax return. The fee is higher for more complex tax requirements.
Pay Insurance Premiums
Cost: Varies
All LLCs in Wyoming with at least one employee are required to get workers' compensation insurance.[15] The cost of business insurance depends on factors like the number of employees, the risk level of your industry, and your past insurance claims.
Once you start hiring employees, you'll need to apply to the state fund, the only provider of workers' compensation insurance in Wyoming.[15] You must register with the Workers' Compensation Division and pay premiums typically quarterly.
Investing in the right insurance can help protect your business from financial losses. For example, business property insurance covers your LLC's furniture and equipment against damage or loss.
Bottom Line
Starting an LLC in Wyoming is more than just paying the $100 formation fee. It starts with selecting the right name for your business and extends to managing your responsibilities after the company is up and running.
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The comprehensive guide above outlines each crucial step in this process. Use it to launch your dream business in Buffalo state.
References
- ^ Wyoming Secretary of State. Limited Liability Company Application for Reservation of Name, Retrieved 01/22/2024
- ^ Wyoming Secretary of State. How to Choose a Company Name, Retrieved 01/22/2024
- ^ Wyoming Secretary of State. Limited Liability Company Instructions, Retrieved 01/22/2024
- ^ Wyoming Secretary of State. Business Division Filing Fee Schedule, Retrieved 01/22/2024
- ^ Wyoming Secretary of State. Instructions To Form or Register a New Business, Retrieved 04/27/2024
- ^ Wyoming Secretary of State. Limited Liability Company Statement of Correction, Retrieved 01/22/2024
- ^ Wyoming Secretary of State. Limited Liability Company Application for Certificate of Reinstatement, Retrieved 01/22/2024
- ^ Financial Crimes Enforcement Network. Beneficial Ownership Information Reporting, Retrieved 01/22/2024
- ^ Wyoming Secretary of State. Trade Name Instructions, Retrieved 01/22/2024
- ^ United States Patent and Trademark Office. Overview of Trademark Fees, Retrieved 01/22/2024
- ^ Department of the Treasury Internal Revenue Service. Application for Employer Identification Number, Retrieved 01/22/2024
- ^ Wyoming Secretary of State. Annual Report, Retrieved 01/22/2024
- ^ State of Wyoming Department of Revenue. Excise (Sales & Use) Tax Division, Retrieved 01/22/2024
- ^ Internal Revenue Service. Self-Employment Tax (Social Security and Medicare Taxes), Retrieved 01/22/2024
- ^ Wyoming Department of Workforce Services. New Employers, Retrieved 01/22/2024
Nicole King is a research analyst at CreditDonkey, a business formation services comparison and reviews website. Write to Nicole King at nicole.king@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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