Are you about starting a business in Wyoming and want to form an LLC? If YES, here are the legal requirement to start an LLC in Wyoming and how much it cost. A Limited Liability Company also known as an LLC is one of the many forms of structure that a business can take. It is one of the easiest to form structures of business that protects your personal assets in the event of a lawsuit against your business.
A limited liability company is usually owned by more than one person who are known as LLC members. However, it can still be owned by just one member, such an LLC is known as a single-member LLC, whereas an LLC with more than one member is known as a multi-member LLC.
Not only does a limited liability have the obvious advantage of protecting the owner’s asset from a lawsuit, it also drastically reduces the paperwork when compared to corporations and other legal entity types, prevents your company from being taxed twice, and also increases the credibility of your business.
In addition, limited liability companies offer the easiest way of choosing the S-Corp tax designation, because they are simpler to maintain than a standard C-Corporation. Here is a detailed guide that will help you to form a limited liability company in the state of Wyoming, USA.
How to Start an LLC in Wyoming in 5 Steps
Table of Content
1. Name Your Wyoming LLC
The very first step towards forming an LLC in Wyoming is to choose a company name. There are certain terms that your company will have to comply with in order to be accepted. Here are some guidelines that will help you
- The name you choose for your business must contain the phrase “limited liability company” in full or as an abbreviation in the form of LLC or L.L.C.
- The name you choose must not contain words that makes it possible to confuse it with any government agency such as the FBI, Treasury, State Department, et al.
- The use of certain “restricted words” such as Bank, Attorney, University may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.
- The name you have to choose must be available, that is, it has to be unused by any other person. You can check if a name is already taken by doing a search on the Secretary of State website.
- You should also factor in the URL for your business. It is best to choose a business name that has an available domain name. Even if you don’t really need a website now, it is best to secure the domain name till when the need for it arises. Domains are quite cheap and anyone can afford them.
When you have registered your domain name it is advisable to also get a professional email account (that is an email that ends in @yourcompany.com
You should also bear in mind that there are certain names you cannot file online but must be filed through the mail.
If you file your LLC by email and the name is not accepted, the state will refund your filling fee, however, If your LLC was filed online and the name is rejected, you will have to forfit your filling fee. Due to the fact that online filing is nonrefundable, there are certain names that must be filled by mail. For instance;
- Names that start with “A” and are followed by a space: if the name you want to choose for your LLC starts with an “A” and then a space, you will have to file it via email. This is not case sensitive (that is, it does not matter if the “A” is uppercase “A” or lowercase “a”)
- Names that include “The”, “An”, “and”, or “&”: if the name you want your LLC to bear include the following, you will have to file it via mail:
“The” or “the”, “An” or “an”, “And”, “and”, or “&”
- Names that include special characters: any name that has a special character, must be filled via mail. However, Periods, commas, and apostrophes are not considered special characters. They are considered punctuation. Special characters include, –, !, @, #, $, %, ^, *,|, /, () et al.
2. Choose A Registered Agent in Wyoming
Next, you will have to nominate a Registered Agent for your Wyoming LLC. A registered agent is a person or business entity that is responsible for receiving important legal documents on behalf of a business. He will serve as a middle ground between you and the state. The entity you choose as your registered agent must be a resident of Wyoming or a corporation authorized to transact business in Wyoming. You may elect an individual within the company including yourself.
3. File The Wyoming Articles Of Organization
In order to register your LLC, you will need to file the Articles of Organization with the State of Wyoming. You can do this either online or via mail. The state filing fee is $100, however, an addition $2 will apply if you file it online. This is a good time to finalize if your LLC will be member-managed or manager-managed.
4. Create an Operating Agreement
An operation agreement is a not necessity for forming an LLC in Wyoming, however, it is advisable to have one. An operating agreement is a legal document outlining the ownership and operating procedures of an LLC. An operating document will ensure that all the owners of the business are in agreement and will help to reduce conflict that may arise as a result of not having it in the first place.
5. Get an EIN
The final step would be to get an employer identification number (EIN). A EIN is also known as a Federal Tax Identification Number, and it is used to identify a business entity. You may liken it to a social security number for the company.
An EIN is needed for Federal and State tax purposes, open a business bank account for the company, and of course to hire employees for the company. You can get an EIN free of charge from the IRS after you must formed your company. You can do this online or via mail.
Frequently Asked Questions
1. Why Use A Wyoming LLC?
The benefit of using a Wyoming LLC is because it offers improved protection from business liability or individuals. And many business owners normally choose to run their business through a corporation or LLC because the corporate veil protects the owners from the liabilities associated business activities.
What Are The Advantages Of An LLC In Wyoming?
The advantages of an LLC in Wyoming are;
- Gaining minimum corporate formalities
- Having a limited liability
- Unlimited stock issuance
- High capitalization
Can A Trust Own An LLC In Wyoming?
Yes, trusts can own an LLC in Wyoming, depending on the type of business standard they aim at.
What Do You Need To Start An LLC In Wyoming?
To start an LLC in Wyoming you need the following guidelines;
- Obtain an employers identification number
- Choose the LLC’s Form of Federal Income Taxation
- Open an LLC Bank Account
- Acquire a business licenses and Permits
- Get business insurance
- Have a Collection of the annual report and license
- Get a tax Prepared Wyoming LLC Operating Agreement form.
What Are The Pros And Cons Of Incorporating In Wyoming?
The pros are
- Gaining financial rewards
- Assisting the local economy and community
- Privilege of choosing whom to work with
- Consider being your own boss
- Accessibility to build an equity.
The cons are;
- Expect some uncertainties
- physical weakness may occur
- Lack of income for sometimes
- Expect much work load for longer hours.
- Lack of guideline from the business experts
Can Legal-zoom Be Your Registered Agent In Wyoming?
Yes! But this usually depends on your state, if you will need to pay a fee and file paperwork first. And if registration agents are involved, you will have to pay for the security of your paperwork.
Should You File Your LLC In Wyoming?
Yes, you can file your LLC in Wyoming. Wyoming LLC’s are controlled by the Wyoming limited liability Company.
Do You Need A Registered Agent In Wyoming?
Yes, you will need a registered agent because it is mandatory for all the business entities filed in Wyoming to have a registered agent for constant maintenance in the state.
Do You Need A Business Address For LLC In Wyoming?
Yes, you are required to have an address on your LLC or corporate formation documents. Because it is through your address that you can receive all the legal documents and state mails.
Why Have A Registered Agent Form Your Wyoming LLC?
This is because a registered agent is your business point of contact (an advocate) with the state and for service process. This registered agent ensures your business maintenance and a reliable way for easy contact.
How Do You Open A Wyoming Business Account?
To open a Wyoming business account you will need the following;
- Proof of identity card
- LLC Operating Agreement
- Employer’s identification number
- Articles of the Organization
What Do You Do After Your Wyoming LLC Is Formed?
What you need to do after your Wyoming LLC is formed include;
- Acquire a relevant business licenses and permits
- Obtain a Seller’s Permit
- Get an employer’s identification number
- Open a business bank account
- Apply for a Business Credit Card.
Is Wyoming A Good Place To Start A Business?
Yes, Wyoming is a good place to start a business because it got the Tax Foundation’s agreement for best business climate. In addiction, Wyoming possesses zero inventory, franchise, occupation and other values added to taxes.
How Much Does It Cost To Form An LLC In Wyoming?
It costs about $125 to form an LLC in Wyoming.
How Long Does It Take To Get An LLC In Wyoming?
It takes about 10 to 15 days from the time you filed the documents. But if you choose an online process, it makes it easier and faster which usually takes about 24 hours to process the forms.
How Much Does a Business License Cost In Wyoming?
A business license costs about $100 in Wyoming with an annual license renewal of $50.
What Tax Structure Should I Choose For My Wyoming LLC?
The tax structure to choose in Wyoming is the S corporation (S corp) status. This tax structure reduces the federal tax duties.
18. Do Wyoming LLC’s Need An Operating Agreement?
An LLC Operating agreement is not mandatory, but it is very vital highly recommendable. This usually depends on the state where your business is based.
How Do You File Your LLC Taxes In Wyoming?
To file your LLC taxes Wyoming, you need the following considerations;
- Gather the annual report and Taxes payment papers
- Open business accounts
- Get a written Operating agreement
- Denominate a Wyoming registered agent
- Get collection of all the organizational articles
- Specify your limited liability company.
How Do You Make Your LLC Anonymous?
Making your LLC anonymous requires filing a Statement of information which requires disclosing the name of the managers of the LLC.
How Much Will a Wyoming LLC Cost Each Year?
The annual cost for Wyoming LLC is about $52
How Often Do You Need To Pay Employees In Wyoming?
Employees are to be paid an annually, which is basically paid in equal monthly installments. State employees are supposed to be paid monthly, nothing later than the 8th day of each month. Wages are to be paid in cash, check, or by negotiation draft, or even by direct deposit at when due.
Should You Hire Northwest Registered Agent?
Yes, you can hire a northwest registered agent because northwest registered agent is considered to be one of best companies recommended in the business services industry.
Is Forming An LLC Worth It?
Yes, there are lots of benefits in LLCs because it is the best business structure, mostly for small businesses because it is cheaper and easy to compose and simple to maintain. An LLC is the right choice for business owners who need to Protect their personal assets, and also have tax choices which possibly benefit their bottom line.
Can One LLC Own Another?
Yes! One can own another ll c only when it is legalized. LLC can be individual or business entities.
Is It Okay To have A Wyoming LLC?
Yes, it is pretty nice having a Wyoming LLC because with LLC, assets are safe from personal liabilities.
Should I Use An LLC Formation Service Or Do It Myself?
Doing it your self is much better because it takes less process in doing it yourself than involving a formation service. The basic process you need is to visit the Secretary of the State’s website, choose an available business name, fill out the articles of Organization which is called a Certificate of Formation and pay up the state filling fee.
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