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.
A Detailed Guide on Starting an LLC in Wyoming and How Much It Cost
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.