Skip to content
Navigation

307-460-5009

News

Start a Business in California – Guide

Date: 08/04/2021 | Category: | Author: developers

Starting a Business in California

One of the most important factors driving business growth and the economy is the business environment. California with a GDP of $3,133 billion and a Silicon Valley startup ecosystem is still considered amongst the top states for new businesses. California is home to 20 or more top publicly traded companies including Apple, Chevron, Wells Fargo, Facebook, Intel, Oracle, Tesla, and Visa among others.

Entrepreneur’s guide to starting a business in California

The state of California has a pro business economic landscape with more than 3 million small businesses currently operational in the state. The state is known to frequently revise or even create new regulatory requirements and has a competitive labor market; the latter being considered advantageous by entrepreneurs as this provides an opportunity for improving internal processes of each business. The state has its own pros and cons but is still considered as an entrepreneur’s dream to start a business in California. Hence, we have created this detailed guide that will provide an insight into how you can incorporate in California and get your business licenses to make the startup operational.

It is never an easy task to start a small business or a startup but if you are planning to register a business in California then there are several aspects of your new business that need to be considered. Our guide takes into account any and all requirements focusing on how best you can incorporate in California. This guide provides a comprehensive outline of the various advantages of starting a business in this state, creation of a business plan that will include financing, sales and marketing; how new businesses can benefit from existing entrepreneurial training or development programs, choosing a business structure that will be beneficial towards achieving your business objectives, and various requirements prior to and post registration of your business.

This guide is focused on providing information to entrepreneurs and small business owners planning to start a business in California. It provides information on not only how you can start and make your business operational like obtaining a business license but also on hiring a reputable registered agent and obtaining a business tax ID or EIN.

Why do companies prefer to incorporate and register in California?

There are several drivers that play a key role in making California one of the most favored destinations for new businesses and startups including the existence of a robust Silicon Valley startup ecosystem, which is highly beneficial to those planning to start a business in the California IT industry. The state of California is a trillion dollar economy and if it were a nation then it would have been ranked as the world’s fifth largest economy. California’s economy is currently the largest in the United States and is home to businesses like Apple, Nvidia, and Intel. There are several advantages for registering a new business in this state and some of them are:

  • A Trillion Dollar Economy: California also known as the Golden State is considered as the largest sub-national economy in the world. The Real Gross Domestic Product (GDP) of this state in 2019 was $2.7 trillion, which is quite the jump from $2,058.14 billion in 2010. Today, it is home to four of the 10 largest companies in the world based on market capitalization. You can register a business in California in any sector including the four largest sectors, which are trade and transportation, financial services, manufacturing, education and health services. A quarter of the state’s economy is dependent on trade and international commerce while professional and business services have added a real value of $391 billion to the gross domestic product (GDP) of California in 2019 followed by information and technology at $326.81 billion. One of the popular sectors to incorporate in California is the manufacturing industry. The total output from the manufacturing industry was $316.76 billion in 2018 and this sector accounts for 10.67% of the output in the state. The future outlook of the state’s economy looks positive in recent times with an increase in distribution of technology, goods, and higher home sales.
  • Small Business Networking Opportunities: When you start a business in California; one of the important factors determining the overall growth of your small business will be the networking opportunities that you can leverage or benefit from. Building relationships is one of the key factors critical to business success and California provides just the right platform as it hosts large trade shows as well as conferences like Oracle OpenWorld and Dreamforce.
  • Investors and VC: One of the important reasons for entrepreneurs to start a business in California is the availability of investors and venture capital firms. Every startup or small business has a startup cost and requires funds not only for enabling growth but also for achieving long-term sustainability. If you are applying for a California business license in the IT industry or in any other industry then innovators as well as entrepreneurs will have access to mentors, investors, and education. Startups and seed or growth stage businesses can benefit from seed funding provided by investors and ranging from $1 million to $100 million or even more.

As a new business; California definitely provides an advantageous edge to potential startups and small business owners. The state also offers several business incentives including tax credits and financial incentives that will help entrepreneurs to start a business in California.

Steps to start a business in California

Entrepreneurs and small business owners prefer to register a business in California as the state offers a multitude of benefits and advantages. The California Office of the Small Business Advocate (CalOSBA) also provides strong support to entrepreneurs through their economic growth and innovation programs. The “Golden State” is home to publicly traded companies and billion dollar organizations including Concentrix, Intel, GAP, Apple, Taco Bell, The Walt Disney Company, PORAC, Cisco Systems, Hewlett Packard Enterprise, Chevron, HP, Seagate Technology, Qualcomm, and Mattel among others. The Silicon Valley startup ecosystem is home to some of the largest IT companies and is considered one of its kind in the world. If you are planning to hire a California registered agent and incorporate your new business or startup in the state then the following steps would help you to identify all your important business requirements.

1. Prepare a California Business Plan

One of the important aspects to consider before you start a business in California is creating a good business plan that takes into account your financial, sales, marketing, advertising, competition, business cost, targeted customer base, and long-term business objectives. It is an important strategic tool that every entrepreneur needs to work on as a good business plan will help you understand your market and create strategies based on the existing market conditions while ensuring your business ideas are launched successfully. According to Benjamin Franklin, “If you fail to plan, you are planning to fail”, and this also stands true for business plans. Some of the reasons why a business plan is important for entrepreneurs are as follows:

  • A business plan will provide you with an insight into the business itself by helping you focus on each area of the business right from applying for a loan to fulfilling state requirements like hiring a California registered agent or helping you identify your customer demographics, target market, distribution methods, and competition.
  • A good business plan will help you identify potential weaknesses and even address various issues, problems or bottlenecks that you may face while trying to incorporate in California or operate the business in any jurisdiction of California
  • A business plan will force you to be more realistic and enable you to communicate your startup idea with stakeholders. It can also be used to secure investment capital from lenders or various financial institutions.

So, what does a good business plan include? In order to start a business in California, your business plan should ideally include the following components:

  • Executive Summary/Company Description
  • Market Analysis and Competitive Analysis
  • Business Structure, Management and Organization
  • Products and Services
  • Marketing Plan and Sales Strategy
  • Financial Plan
  • Future Projections

2. Attend Entrepreneurial Training or Development Programs in California

One of the areas to focus on prior to or after you register a business in California is to enroll for Entrepreneurial Training or Development Programs in the state. Entrepreneurial Training or Development Programs are primarily targeted at mostly first time entrepreneurs who don’t have any form of previous entrepreneurship or business training. Such programs cover three important variables, which are location of the business, target group or audience and the enterprise. They help in development of entrepreneurial abilities and key skill sets required for running a business right from the incorporation stage to the operational stage. These training programs are also available as a part of the Silicon Valley startup ecosystem and impart knowledge on:

  • Entrepreneurial Skills and Mindset
  • Assessment of Business Ideas
  • Financial Planning and Forecasting
  • Accounting and Financial Management
  • Legal and Personnel
  • Business Planning, Finance and Exit Strategy
  • Operations Planning
  • Market Research

If you register a business in California then there are several entrepreneur support programs to choose from in the state like the following:

  • The iHub Program: If you incorporate in California then you can leverage the iHub program. The program consists of 16 Innovation Hubs or iHubs stretching from Redding to San Diego and they feature a variety of assets like technology incubators, research parks, and universities for providing a strong innovative platform for first time entrepreneurs and startups.
  • Entrepreneurial Training Programs: A variety of programs offered in different counties, cities, and universities. Programs are being offered by the city of Los Angeles Community Development Department, Vermont Slauson Economic Development Corporation, Lloyd Greif Center for Entrepreneurial Studies etc.
  • Small Business Development Centers: After you incorporate in California, you can benefit from the programs offered by the Small Business Development Centers. These centers are located across the state and focus on providing comprehensive business assistance through one-on-one consulting as well as low-cost entrepreneurship workshops.

3. Choose a Business Structure for California Business

If you want to start a business in California, you will need to first choose a proper business structure. According to the California secretary of state, there are different business structures that you can choose from and they are:

One of the important aspects of forming a new business in the state is the business structure. Each business structure has its own pros and cons but the three important aspects that every business owner should consider before they incorporate in California are:

  • Risk factor: Each type of business structure has its own level of risk and as a new business owner; you should always focus on ensuring the risk is minimal. You can form a business corporation or a limited liability company (LLC) as they provide protection to personal property of the owner from a business creditor.
  • Tax Structure: The tax structure is one of the most important aspects that an entrepreneur has to consider before they register a business in California. Most often than not, new business owners opt to go with a business structure that is considered a “pass through entity” like sole partnerships, proprietorships, and LLCs.
  • Complexity of a structure: If you ask any California registered agent they will say that almost 75% of small businesses in the state and the nation operate as sole proprietorships because there is less paperwork and annual maintenance cost is also lower compared to other states.

These are some of the considerations you have to make so that you are able to make an informed choice regarding a business structure.

4. Naming Your California Business

If you are planning to start a business in California then one of the important prerequisites as mentioned by the office of the California secretary of state is a business name. A business name is integral to each and every business as your company can be distinguished from any other company on the basis of the name. The business name can also be related to the brand message as well as the product or services you are planning to offer. The right business name is the key to making a successful business or breaking a business from a marketing or advertising point of view. A business name can be related to the product or service you are offering, it can be emotional, or it can be abstract but it is important to remember that the name will also create first impressions with prospective customers.

The California secretary of state specifies that a business name should be distinguishable in their records from any other business name and it should not mislead the public. Depending on the type of business structure, you can use words or abbreviations. For example if you plan to start a business in California as a limited-liability company then you can use words like Limited Liability Company or abbreviations like LLC or L.L.C. The California Business Code will be applicable depending on the type of business structure. For instance, the business name for a corporation is governed by CA Corp Code § 201 (2016).

Once you have identified a business name, you will have to check for availability or conduct a business name search with the California secretary of state. If it is available, you can reserve it for a period of 60 days.

5. Choose Your Location for California Business

If you are planning to start a business in California, you have to identify or choose a location? First time entrepreneurs often wonder if location is really important and the truth is that location can play a decisive role in determining the long-term success and sustainability of your business. A location is considered to be an integral part of the strategic plan. It is important to note that certain locations in the state have been projected as the best places for specific business activities. For example, Southern California is home to the film industry while Napa Valley is considered a wine country. Some of the top locations where you can incorporate in California are:

  • Palo Alto: The city is associated with startups and entrepreneurship and is situated in the heart of the Silicon Valley startup ecosystem hugging the southern San Francisco Bay Area. It is home to big companies like Nest, Ideo, HP, Tesla, Palantir, and VMWare.
  • Los Angeles: Los Angeles County is known to have one of the most dynamic economies in the world and hence is popular among entrepreneurs who want to start a business in California. LA County is home to a rapidly growing, fast-paced high-tech industry, a strong advanced transportation and aerospace industry, and the largest manufacturing base and international trade industry in the nation.
  • Orange County: It is the 6th largest county in the nation and is considered as one of the top economic locations in the world thanks to its proximity to San Diego County, Los Angeles County, San Bernardino County, and Riverside County. It has the lowest unemployment rate in Southern California and is a highly diverse tech-county with 16 high-tech industries based out of this county making it popular for first time business owners to register a business in California.

Some of the other top cities and counties where you can register businesses in California include San Jose, San Francisco, Chula Vista, San Diego, Irvine, Long Beach, Bakersfield, and Sacramento. You can incorporate in California in any of these locations but you need to consider the following to ensure you choose the right location for your business.

  • Real estate cost and availability of office space
  • Overall business environment
  • Availability of business or startup resources
  • Attracting talent and retention
  • Transportation and logistics
  • Accessibility to your target audience or consumers
  • Ease of obtaining California business license

If you would like help deciding on a location for your business, contact the California Business Investment Services unit of the Governor’s Office of Economic Development (GO-Biz). The California Business Investment Services unit provides tailored site selection services for businesses, real–estate executives, and site selection consultants.

6. Register Your Business with California Secretary of State

You have an innovation or an idea but how do you ensure it reaches the targeted audience in California? The option is to start a business in California. The process of new business formation or incorporation can vary from one state to another and from one business entity type to another. If you were to form a professional corporation in California then you will be required to file the Articles of Incorporation of a Professional Corporation pursuant to CA Corp Code § 200.5 (2018). If you were to form a limited-liability company then filing of Articles of Organization pursuant to CA Corp Code § 17702.01 (2017) is necessary. The new business formation documents have to be filed along with a Submission Cover Sheet and the prescribed fee with the office of the California secretary of state.

One of the most reliable California registered agents like IncParadise can help you register a business in California or help you with incorporation. We have a team of experienced and professional business formation experts who can provide you with the required guidance. The benefit of using experts like us is that it will help entrepreneurs save time and valuable resources.

Do you want to start a new business in California?

7. Get Your EIN

An Employer Identification Number (EIN) is one of the initial requirements if you intend to start a business in California. It is a nine-digit unique identification number that is issued by the IRS to specific business entities like a limited liability company with multiple members or business corporations. The purpose of an Employer Identification Number is to enable tax administration and businesses can use this number to file their annual tax returns. Your business may or may not require an EIN. If you want to know if your business requires an EIN or not then IncParadise as a professional California registered agent will not only provide relevant information but also guide you through the application process for an EIN. The Employer Identification Number for your California business can also be used for opening a business bank account, filing taxes, getting financing or applying for loans, and also for handling employee payroll wherever applicable.

8. Open a Business Bank Account for California Business

Entrepreneurs planning to register businesses in California may feel that there is probably no need for a business bank account especially if it is a single owner business. As a matter of fact, having a business bank account can be quite beneficial. Some of the benefits include:

  • Your business account and business assets will remain separate from your personal assets
  • Your business records will be much more organized
  • Your business bank account will ensure you are able to file taxes accurately, which would be difficult and confusing if your business and personal transactions were connected to a single account
  • You will be able to set up a credit acceptance system and a merchant account using your business bank account to accept cash and credit card transactions
  • A business account helps in improving the image of your company and makes it look professional.

You can apply for a business bank account before or after you incorporate in California.

9. Obtain the Necessary California General Business License and Permits

You can start a business in California but to make it operational, you will need a business license. Most businesses operating in the state will need to apply for and obtain a license or a permit to conduct their business. It is important to first understand that a California business license can be categorized under:

  • General Business Licenses: A general California business license is required by most business owners planning to conduct their business in a city where the business is located. A business license is also known as a business tax certificate in certain cities and if you start a business in California in an unincorporated section of the state then you will be required to obtain your business license or tax certificate according to the county. It is also important to note that if you are planning to operate your business in multiple locations then you may be required to obtain a business license in each of those locations.
  • Licensing for Regulated Industries: When you register a business in California, depending on the location and the business activity; your company may be required to apply for additional licensing that is covered under “Licensing for Regulated Industries”.

The Department of Consumers Affairs (DCA) is responsible for administering California business licenses in almost 280 different license categories and these include registrations, certificates, and permits.

The entire process of identifying the right California business license or business tax certificate may look complex and you may even require multiple licenses. We at IncParadise have a “Business License Research Report” service that can benefit you immensely as it provides comprehensive filing instructions, filing fee, list of supporting documents for all business licenses and permits in California.

10. Register for Taxes

If you start a business in California as a corporation or as a limited-liability company then it will be subject to a state income tax and hence it is important to register for taxes. California has both state level taxes and local taxes. There are 4 agencies that govern state taxes and they are:

  • California Franchise Tax Board (FTB): FTB is responsible for handling state income and business taxes if you incorporate in California
  • California Department of Tax and Fee Administration (CDTFA): CDTFA is responsible for handling sales and use tax
  • California Employment Development Department (EDD): EDD is responsible for handling payroll taxes
  • California State Board of Equalization: They are responsible for handling alcoholic beverage tax, property tax etc.

The type of taxes you have to pay will depend on several factors. Some of these factors are the business structure, the location of your company, the industry or business activity, and the mode of revenue generation.

11. Annual and Ongoing Requirements

Once you register a business in California, there are certain annual and ongoing maintenance requirements that you will be required to fulfill. Some of the annual requirements after you incorporate in California are:

  • Statement of Information: One of the most important annual requirements for most business types is the “Statement of Information”. This statement has to be filed with the California Secretary of State and has to be filed within 90 days after filing the documents for new business formation or incorporation. Once filed, additional statements of information will be due every 2 years pursuant to Section 17702.09 for LLC’s and Section 1502 for corporations.
  • Minimum Tax Requirement: Business entities like corporations, limited-liability companies, and partners or a member in a pass-through entity will be required to pay a minimum tax of $800 to the California Franchise Tax Board (FTB) each year in accordance with FTB Publication 1060.
  • DBA: If you register a business in California using a fictitious business name or DBA then it will be valid for a period of 5 years unless you change it. In such a scenario, you will need to register a new name. If you keep the DBA, then it has to be renewed

Form a new business in California to enjoy the many advantages!

Some Important Quick Resources for California Business

The good news is that you can start a business in California but the most important aspect is to find the right resources and guidance that will enable you to achieve growth and success. Each business is unique in its own way and hence the need for resources may also vary depending on their primary business activity. At the same time, you need to be also equipped with skills and knowledge to help you operate the business smoothly. The question is where do you find relevant resources and meaningful guidance if you incorporate in California? To help you answer this, we have created a list of resources relevant to new businesses, entrepreneurs, and startups.

California Secretary of State

The office of the California Secretary of State handles several aspects of governance including formation of new businesses in the state. The Secretary of State has a website that provides comprehensive information and business related resources that will help you determine the documents you need to file to register a business in California. They also provide online and offline filing of business related documents like reservation of a business name, statement of information and business entity search. You will also find information pertaining to fees for filing different documents and guidance towards business document submission in the filing tips section. The contact information for California Secretary of State is:

  • California Secretary of State
    1500 11th Street, Sacramento, CA 95814
    P.O. Box 944260, Sacramento, CA 94244-2600
    Phone: (916) 657–5448
    Website – https://www.sos.ca.gov/

State of California Franchise Tax Board

The California Franchise Tax Board (FTB) is a division of the California Government Operations Agency and is responsible for collection of state personal income tax. FTB also levies a franchise tax on any business operating in the state and hence if you incorporate in California, the franchise tax will be filed with this department. You can make a payment, check your refund status, and download relevant tax forms from the website. You can also benefit from their Taxpayer Advocate Services, Executive Services, and Small Business Liaison. The contact information for California Franchise Tax Board is:

California Tax Service Centre

The California Tax Service Centre is sponsored by the California Fed State Partnership and they have partnerships with tax agencies like Franchise Tax Board, California Department of Tax and Fee Administration, Board of Equalization, Internal Revenue Service, and Employment Development Department. If you start a business in California then you can file Payroll Taxes and Sales and Use Tax with this department. You can also download information pertaining to different types of taxes including Income Tax, Payroll Tax, Sales and Use Tax, Property Taxes, and other Special Taxes and Fees. The contact information is:

  • California Tax Service Centre
    PO Box 942840
    Sacramento, CA 94240-0040
    Phone: 1-800-338-0505
    Website: https://www.taxes.ca.gov/

Governor’s Office of Business and Economic Development

The Governor’s Office of Business and Economic Development (GO-Biz) has several job responsibilities including promotion of job growth, business assistance efforts, and economic development. GO-Biz also offers individuals and businesses a no cost consultation in a variety of areas like regulatory or permitting compliance, exports and foreign direct investment, and regulatory or permitting compliance assistance among others. When you incorporate in California you can benefit from different types of programs they offer for entrepreneurs like the California Small Business COVID-19 Relief Grant Program, Get Digital CA!, and Entrepreneurship Task Force. The contact information is:

  • Governor’s Office of Business and Economic Development (GO-Biz)
    1325 J Street, Suite 1800
    Sacramento, CA 95814
    Phone: 1-877-345-4633
    Website: https://business.ca.gov/

Labor and Workforce Development Agency

The California Labor & Workforce Development Agency (LWDA) is responsible for coordinating workforce programs. The California LWDA also oversees the working of major departments, panels, and boards that are driven towards serving California businesses and workers by improving their access to training programs and employment. If you register a business in California, you can benefit from the comprehensive information they provide related to various aspects of labor and business like Workplace Safety and Health, Labor Laws, Workers’ Compensation, Payroll Tax Obligations, and other additional resources. The contact information is:

Department of Consumer Affairs

The California Department of Consumer Affairs (DCA) is an integral part of the California Business, Consumer Services, and Housing Agency. DCA is responsible for licensing or certifying practitioners in over 255 professions. The department also plays the role of a licensing regulator and an educator. They also provide comprehensive information related to several aspects of business and consumer requirements like Regulation Procedures, California business license for professionals, Consumer Assistance Booklet, Certified Arbitration Program, and Consumer guides to various businesses etc. The contact information is:

  • Department of Consumer Affairs
    Consumer Information Center
    1625 North Market Blvd., Suite N 112
    Sacramento, CA 95834
    Phone: (800) 952-5210
    Email: dca@dca.ca.gov
    Website: https://www.dca.ca.gov/

CalGOLD (The Gold Standard For Permit Assistance)

CalGOLD is an initiative as a part of the Governor’s Office of Business and Economic Development (GO-Biz) to help businesses and entrepreneurs find appropriate permit information. If you are unsure regarding the California business license or permit your business requires then the CalGOLD Business Permit System will be able to address your queries. If you are planning to start a business in California then you can check the FAQs section and conduct a search based on permits and licenses or forms and fees on their website. The contact information is:

California State Treasurer’s Office

The California State Treasurer’s Office is primarily responsible for finance and investment in the state. If you start a business in California then you can find information on their website pertaining to Treasurer’s Office Programs. Some of the top programs include the Local Agency Investment Fund (LAIF) program, California Hub for Energy Efficiency Financing Pilot Programs, Small Business Energy Efficiency Financing Program, Sales and Use Tax Exclusion (STE) Program, California Tax Credit Allocation Committee (CTCAC) programs, California Educational Facilities Authority’s (CEFA’s) Bond Financing Program, and Time Deposit Program among others. The contact information is:

Ready to start business in California?

California is favored by entrepreneurs, startups, and small businesses as the state provides a robust infrastructure and business incentive programs that will help you to start a business in California.

Of course, the formation or incorporation process for different types of businesses will be different and that is where IncParadise can provide you with guidance and support. We are an expert registered agent and incorporation service provider in California. We have already helped thousands of individuals and entrepreneurs to start their limited liability company or professional corporation.

We will not only provide assistance towards helping you register a business in California but as one of the reputable California registered agents, we also provide a plethora of additional services like EIN assistance, foreign qualification, California certificate of good standing, and EDGAR filing among others.

IncParadise can assist you with new business formation in California!

Decentralized Autonomous Organization (DAO) in Wyoming

Date: 04/16/2021 | Category: | Author: Jakub Vele

Decentralized Autonomous Organization (DAO) in Wyoming

A Decentralized Autonomous Organization (DAO) is a member-owned community without a centralized leadership system. It is a safe way to collaborate with internet strangers and was meant to operate as a venture capital fund for the crypto and decentralized space. The DAO is a safe place to commit funds to a specific cause. The lack of a centralized authority reduced the costs and increased the control and access for the investors.

Introduction to DAO in Wyoming

When blockchain technology was introduced, the masterminds behind the DAO idea got the tools they needed to turn their ideas into a real-world project. Blockchain technology brought in the concept of a secure digital ledger. With this technology, all the transactions of the members across the Internet could be tracked digitally. Furthermore, it has also offered a safe and secure environment to build a Decentralized Autonomous Organization.

Blockchain technology uses a technique which is called trusted timestamping to eliminate counterfeit transactions. A distributed database is held by all the users of the blockchain to remove corruption and the need to include an intermediary. This technology was incorporated into an organization so that it can be run without managerial supervision. This means that the DAO can run autonomously if there are proper rules and flexibility on the platform. Currently, Wyoming has received a bill to allow the incorporation of DAO companies.

Key Things to Know About Decentralized Autonomous Organization (DAO)

A decentralized autonomous organization (DAO) is an organization or business whose decisions are made electronically through a written computer code or via the vote of its members. Basically, it is a system of hard-coded rules that would define all the actions that take place in the organization.

What is a Decentralized Autonomous Organization (DAO)?

To understand this, let us understand digital currencies which are decentralized. This means that they are not controlled by a single government institution or bank. Rather, the control is divided among a variety of computers, nodes, and networks. With this, they also gain a lot of privacy and security that normal currencies and their transactions do not get. Inspired by this, in 2016, a group of developers got the idea to create a decentralized autonomous organization.

A DAO is an organization that was created to be decentralized and automated. It does not have a typical management structure or board of directors and it is based on an open-source code. So that it stays completely decentralized, the DAO was unaffiliated with any specific state or country. The reason why such an organization was created was so that manipulation of investor funds and human error can be eliminated. This is done by placing the decision-making power in the hands of an automated system and a crowdsourced process.

How does a Decentralized Autonomous Organization work?

In a decentralized autonomous organization, every vote or action that takes place is represented in the form of a transaction in the blockchain. And the members who take action or place votes are represented by their address. These addresses can be owned by anyone including an IOT device, a robot, a human or even another DAO. And this is what makes it an automated system. Also, each member gets a token that acts as the shares of the DAO. These tokens can also be used to vote in the DAO to make a specific decision.

The token is just another kind of contract that is becoming a part of the blockchain. And the more tokens an address has, the more control that address has over the DAO. Every member has the right to submit a proposal that would help them make certain decisions. These decisions include:

  • Hire a lawyer
  • Hire a vendor to get his/her service
  • Fire the CEO
  • Change the CEO
  • Pay certain USD/ethers to someone as a bonus or salary
  • Issue the share to an address since that address is adding more value

In the decentralized autonomous organization, since it is a democracy that runs on the blockchain, the voting power can be optionally entrusted to someone the member trusts. It is just the same as voting through a proxy in a real organization. The DAO can also raise funds through crowdsourcing by issuing tokens to anyone who is paying the money. All these transactions take place in real-time unlike the time taken in a real organization which is more than 60 days.

Decentralized Autonomous Organization Examples

With the DAO, we can now have companies that do not have a specific hierarchy or a CEO. This makes the structure one of the best ones to have in any kind of organization. In fact, if regulatory structures allow, then blockchain data could replace a lot of the public records such as missing persons, sex offenders, titles, mortgages, deeds, marriage certificates, and birth certificate records.

With this, healthcare clinics can also function autonomously, software development companies can employ thousands of independent programmers, cab companies can control a fleet of driverless cabs, and so on. This list can just go on when a DAO model is applied to any business. In fact, there are such companies in the real world as well. Some of the examples of the real world include Digix.global and the cryptocurrency Dash.

Dash is a popular digital currency and is an example of a decentralized autonomous organization due to the way it is governed and how its budgeting system is structured. And after some time, we would find many other additional DAOs in the field.

Forming a Decentralized Autonomous Organization (DAO) in Wyoming

Forming a Decentralized Autonomous Organization in Wyoming is quite easy. It can be formed online or even by just filing the form and mailing it.

How do I form a DAO in Wyoming?

A DAO can be formed by filing online or mailing the paper form. Here is the process to form a DAO LLC in Wyoming:

Looking to Register a DAO in Wyoming?

What are the naming requirements for WY DAO?

The company name should have “DAO LLC” or a combination of both the entity indicators (DAO and LLC) in the name. Here are the indicators you can choose from:

  • The name has to include either – Limited Liability Company or its abbreviations including: LLC, L.L.C., Limited Company, Ltd. Liability Co., Ltd. Liability Company, L.C., LC, or Limited Liability Co. – as per W.S. 17-29-108.
  • It should also include: DAO or LAO as per W.S. 17-31-104(d).

How much does it cost to form a DAO in WY?

The initial fee to form the DAO in Wyoming is $100. After that, you will have to spend $60 as a minimum for the annual reports every year. The fee is calculated based on the assets employed and located in Wyoming. So, the tax is basically $60 or two-tenths of one mill on the dollar ($.0002), whichever is greater.

Do I need a Registered Agent for a DAO Company?

Anyone can form a DAO LLC by just signing and delivering one original and one exact copy of the articles of organization to the Secretary of State for filing. The person who helps with the filing does not have to be a member of the organization. Each DAO needs to have and maintain a registered agent in the state of Wyoming. That is where IncParadise can help you by being appointed as your registered agent for your WY DAO.
Other than this, you will need the Articles of Organization.

What to Include in Your Article of Organization?

The Articles should include – a statement that the organization is a DAO, the name of the DAO LLC, the street address, the name of its registered agent, and their office address. It should also have a written consent added to the appointment and signed by the registered agent. The Articles should define the structure and management of the DAO.

In short, these are the details that would be added to the Articles of Organization if you are going to be a DAO:

  • Pursuant to W.S. 17-31-104(c), a Notice of Restrictions on Duties and Transfers if it will not appear in the operating agreement;
  • Pursuant to W.S. 17-31-106(b), a publicly available identifier of any smart contract directly used to facilitate, manage or operate the DAO;
  • Pursuant to W.S. 17-31-106(a), a statement that the entity is a decentralized autonomous organization; and
  • If the Notice of Restrictions on Duties and Transfers will appear or appears in the operating agreement, a statement of such.

Convert Your LLC to DAO

DAO is still an LLC and it still follows all the laws of the LLC. The only difference is that it is a subtype of the traditional LLC. So, it is very easy to convert a domestic LLC to a DAO. All you need to do is file for an amendment to your articles and it would be converted. Note that the amendment form should have the information as needed in the W.S. 17-31-104(b). Find out more about it here – https://sos.wyo.gov/Forms/default.asp.

Management and Membership of LLC

The management of a DAO should be vested in the smart contract if it is algorithmically managed or in its members, if it is member-managed, unless it has been otherwise provided in the Articles or operating agreement. In case there are specifications made, then the DAO is considered to be member-managed.

Annual Reports for Decentralized Autonomous Organization in Wyoming

The company needs to file the annual reports that are due every year on the first day of the anniversary month of the formation of the company. If the company does not file for and pay within 60 days of the due date, the entity will be subjected to dissolution.

Additional Contact Information for DAO

Ready to Form Your DAO in Wyoming?

Decentralized Autonomous Organization Advantages

As mentioned above as well, there are a lot of decentralized autonomous organization advantages including:

  • Cheap distribution of shares. This is because there is no middleman and the members communicate with each other when they want to sell/buy DAO shares. This makes the complete process cheap.
  • You can code integration with suppliers in the algorithm. With this, the execution would work based on that interactive algorithm. In case it is not disputed, the cooperation between the parties would be much cheaper and smoother.
  • Members (who are also the shareholders) of the DAO can have a very immediate and direct impact on the company’s operations.
    No single person exists who represents the decentralized autonomous organization. Basically, all the members, including the minors also represent the company collectively.
  • You can also code many standard corporation activities in the DAO algorithm. This would help the operations get executed automatically without any human intervention. Payroll, tax payment, auditing, accounting, and anything else, all would be taken care of. This process adds transparency to the operations and eliminates the risk of human errors and lowers employment costs.
  • The cheap distribution of the dividends is done directly from the decentralized organization to members.

All these things just make the incorporation of the decentralized autonomous organization such a good idea.

Risks in Decentralized Autonomous Organization

Like all things have both positives and negatives, the DAO has some risks as well. These include:

  • Parties might not be explicitly defined in the smart contract. So, if there is a dispute not covered by the code, it might become difficult to resolve it in the traditional legal system.
  • The algorithm cannot do more than what it has been coded for. This means that it can end up making bad or biased decisions in case you do not account for every reasonable circumstance and fact. The only way to overcome this is if the DAO is structured in a way that there is always human interference in it that can take back or stop automatic decisions.
  • A lot of the useful DAOs need access to data outside the blockchain. And this data is usually given through semi-automatic or automatic centralized oracle mechanisms. If someone wants to disrupt the operation of the DAO, they can easily attack it via the oracles that the organization is based on.
  • Public blockchain networks aren’t controlled by a single party and their evolution can move in an unexpected direction, resulting in DAO disruption. In extreme cases, the DAO can end up becoming unstable and would just end.
  • The programming code of the DAO can have bugs that can be difficult to rectify since the smart contract code is immutable (you will need to read more about blockchain to understand it better). And these bugs can cause anything from unexpected liability increment to money loss.
  • In case you lose the cryptographic private key or someone steals it from you, you will lose access to the DAO and your voting rights as well. Getting it back even through legal procedures would just not be possibl

Even though there are negative points to this, there are many who are working to overcome these drawbacks and find a way around it.

Do you need help in Incorporating a Business in Wyoming?Looking to Register a DAO in Wyoming?

If you are thinking of starting your company and want to choose the decentralized autonomous organization structure, then we can help you with it. IncParadise can also help you to restructure your LLC into the DAO. We can also help you to register and incorporate your company whenever and however you want to. In addition to this, we also offer maintenance services such as mail forwarding, business address, registered agent services, and so on. Contact us to select some of our services or to know more!

Looking to Register a DAO in Wyoming?

How to Start a Business in Casper, Wyoming

Date: 02/15/2021 | Category: | Author: developers

How to Start a Business in Casper, Wyoming

Wyoming is considered as one of the few states that offer a pro-business environment and Wyoming’s capital Cheyenne along with Casper are the two cities that are known as the best places to start a new business. Entrepreneurs like to start a business in Casper, the second largest city in the state owing to the many benefits and opportunities the city offers. This is your comprehensive guide to opening a business in Casper covering areas from business advantages in Casper to formulating a business plan, registering the business, licenses and permits, and marketing the business among others.

Casper – Best city to start small business in Wyoming

Casper also known as “The Oil City” is famous as the regional petroleum industry center. It has been featured in the Forbes magazine list of “Top 25 Best Small Places for Business” in the nation with several industries within which you can start a business in Casper. The economy of Casper, WY employs over 30,000 people and some of the largest industries include Health Care, Retail Trade, Social Assistance, Accommodation & Food Services, Transportation & Warehousing, and tourism. You can form a business in any industry by applying for and obtaining a Casper WY business license.

Why is Casper the best place to start a business?

The city of Casper has a vibrant economy and is high on entrepreneurial spirit making it one of the best places in Wyoming and the country for a startup. You will need a business license in Casper to operate a business in this truly inspiring destination where innovation and technology combine to create a strong infrastructure. There are several reasons why opening a business in Casper is considered to be one of best options, so let’s look at some of the top reasons.

  • No or Low Taxes: One of the greatest benefits of opening a business in Casper is the tax benefits. There are no state taxes like no corporate or inventory taxes. The salient highlight is that neither the City of Casper or nor Wyoming state charges any income taxes. This is one of the primary reasons why entrepreneurs prefer to start a business in Casper. The local sales tax is quite low at 5% as compared to Arkansas at 9.43%, Alabama at 9.14%, and Washington at 9.17%. The local sales tax includes 4% charged by the state and an “Optional One Cent” charged by the City of Casper, which is spent on supporting infrastructure, equipment, and local non-profit organizations.
  • Strong Infrastructure: Every business requires a strong infrastructure as it plays a key role in ensuring steady and focused long-term growth. This city offers just that to those who plan to start a business in Casper. There are several key infrastructural and construction projects currently underway in the city to boost overall economic growth. One such project is the “Casper Wind Project” and its objective is to develop renewable energy facilities across potentially contaminated land as well as mine sites. The strong and reliable transportation infrastructure with Interstate Highway, US Routes, and Wyoming State Highways makes it feasible for opening a business in Casper especially in the manufacturing or warehousing & logistics industry.
  • Business Incentive Programs: There are several business incentive programs that you can benefit from once you start a business in Casper. Some of the top programs include:
    • Opportunity Zone Incentive Program
    • Foreign-Trade Zone (FTZ) Program
    • Small Business Grants Program
    • Film Industry Financial Incentive (FIFI) program
    • Federal solar investment tax credit program

Steps to Start a Business in Casper, Wyoming

One of the top places to start an llc in Wyoming is Casper with Natrona County being the most popular for new businesses. A research study has indicated that 3.3 new entities were formed per 1000 people and this is almost 43 percent of the national average. According to the U.S. Census Bureau and the U.S. Bureau of Labor Statistics, there are approximately 2700 small businesses in this city and is considered to have the best business environment thus putting it on the list ahead of Denver, Cheyenne, and Rapid City. You can start a business in Casper just like many other entrepreneurs have formed their new businesses. Some of the top companies situated in Casper include G W Mechanical, Wyoming Medical Center, Wyoming Machinery Company, SST Energy, RMH Franchise, and University of Wyoming among others.

You can start an llc in Wyoming, a business corporation in Casper or any other form of business. However, it is important to note that there are several aspects to consider when forming a business including the requirement of a proper business license in Casper. Let’s take a look at the steps that will help you to register your business in the city and make it fully operational.

Prepare your business idea and plan

The importance of a business plan lies in the fact that it will help you run your business better. The first and the foremost detail not to be missed is a business idea. This simply refers to the type of business activity you want to pursue like what product or service you are going to offer when you start a business in Casper. The business idea will also determine the business plan. It is important to understand that there are no good or bad business plans; instead you need to focus on creating a plan that will answer your specific requirements. There are however two categories of plans to choose from and they are: traditional plans and lean startup plans. Either of these plans will provide you with a comprehensive roadmap of opening a business in Casper, making it operational, and managing it. Some of the areas that you need to include in your business plan are:

  • Executive summary: This is the first section and it includes your mission statement, product or service being offered, and basic information related to your firm including employees and location.
  • Company description: This section provides detailed information regarding your business including competitive advantages of opening a business in Casper.
  • Market analysis: This part of the business plan necessary to start a business in Casper focuses on the industry outlook as well as the target market.
  • Services or Product line: This section provides detailed description of the products or services being offered by your company and their benefits to the potential consumers.
  • Marketing and sales: This is integral to start a business in Casper and there are no perfect marketing or sales strategies. The strategy has to take into account several factors like target audience, location, competition, budget, and the USP of the product or services.
  • Financial projections: This section should provide a financial outlook of the company for a minimum period of 5 years. This section should include forecasted income statements, funds to buy materials or equipment, balance sheets, capital expenditure budget, cash flow statement, and utility bills among others.

Choose your business entity

If you are planning to start a business in Casper then it is important to choose the type of business entity. In the state of Wyoming, you can choose from a variety of business entities but the most popular forms are limited-liability companies and corporations. Most often than not, entrepreneurs choose to start an llc in Wyoming as it offers them limited personal liability and flexibility of management and ownership.

Entrepreneurs also start a business in Casper as a business or private corporation because of the personal liability protection, security and perpetuity, easy to transfer ownership, tax benefits, and quick access to capital. The type of business you choose will be driven by several factors like the advantages of each entity type, the cost of formation, the tax benefits, the overall cost of maintenance annually etc.

Register your business

Once you have chosen the type of business entity; you need to register the business with the office of the secretary of state. This step will help you to start a business in Casper. Along with registration, you need to also identify a business name, check its availability, and then file the “Application for Reservation of Name”. The chosen name has to be provided on the application for business formation or Articles of Organization or Articles of Incorporation. The process of registration or opening a business in Casper can involve extensive documentation but IncParadise as your Wyoming registered agent can help you to register your business in Casper quickly and efficiently.

Obtain necessary licenses and permits

Once you have registered your business, the next step is to make it operational. A business can begin operations only after you apply for and obtain a business license in Casper. The license or permit required for your business will be determined by the business activity and in some cases you may require more than one license or permit or both. The type of business activity will also determine whether inspections are necessary prior to issuance of the Casper WY business license.

Most licenses are issued by the office of the city clerk but some licenses are issued by state departments. For instance, a Temporary Food License is issued by Casper-Natrona County Health Department. A business license in Casper is issued once the applicant submits the license or permit application along with the prescribed fee. It is important to note that all types of Casper WY business licenses or permits will expire on 31st December of the calendar year and have to be renewed. You can check the Casper, WY official website to get more information on the local licensing requirements and laws.

Do you want to know what licenses your Wyoming business requires?

Register for Taxes

Apart from fulfilling the requirements for a business license in Casper; you will also be required to register for sales tax. If your business has a physical presence or meets Wyoming economic nexus requirements, then obtaining a sales tax permit is necessary. The sales tax permit issued in the state is also known as the Sales and Use Tax License. In order to obtain or register for a sales tax permit, you may require the following depending on the type of business:

  • Personal identification info like address, SSN etc
  • Business identification info like physical address, EIN etc
  • Date of first sale in Wyoming
  • Information on products or services you are planning to sell

You can register for the taxes after opening a business in Casper and have to pay a one-time fee of $60 when submitting the Sales/Use Tax License Application. The tax permit or license is issued by the Wyoming Department of Revenue within 10 days of receipt of the application.

Obtain an EIN

One of the foremost requirements to start a business in Casper or any other city or state for that matter is an Employer Identification Number (EIN). This is a unique nine-digit tax ID number that is often known as the Federal Employer Identification Number (FEIN). This unique number is issued by the Internal Revenue Service (IRS) to specific business entities. If you start an llc in Wyoming with employees or a business corporation then you will need to apply for and obtain an EIN. We at IncParadise are an experienced and reputable registered agent that can help you to obtain an Employer Identification Number (EIN) so that you are able to file your return conveniently and can conduct your business in the state.

Market your business

In order to market your business successfully, you will need to create a marketing plan. Often, the marketing plan is an integral part of the business plan. When you start a business in Casper, your marketing strategy or plan will vary according to the products or services the business is offering. There are several key elements for marketing your business and they are:

  • Website: One of the most important elements of marketing after you start an llc in Wyoming is creating a website showcasing your products or services. You can take professional help for creating a website or use ready to use templates.
  • Online Presence: One of the ways to create high visibility and brand awareness is through a strong social media presence. Some of the top social media platforms include Facebook, Twitter, Instagram, LinkedIn, Snapchat, Pinterest etc.
  • Local Events: Once you have obtained a business license in Casper then it is time to attend local business related events. There is a wide variety of events that take place in Wyoming and are organized by state and private organizations. These events are targeted at first time entrepreneurs as well as established business owners and provide a platform for you to market your brand to your target audience and other businesses.

Casper Business Resources and Agencies

Every business has its own unique product or services but lack of resources or help can make it difficult to start a business in Casper. Resources can be in the form of information as well as funding opportunities. Every business needs resources in some form to elevate their business to the next level. Let’s take a look at some of the useful resources and agencies as these can make opening a business in Casper easier.

Casper area chamber of commerce

If you are looking for resources that will help you to start a business in Casper then the Casper Area Chamber of Commerce is just the right place to begin your search. Their primary objective is to create business opportunities by leveraging, informing, connecting, and collaborating with their members. They offer a range of business tools including a variety of essential resources and a positive business environment for both new as well as existing businesses. The contact information is as follows:

  • Address: 500 North Center Street – Casper, WY 82601
  • Phone: 307-234-5311

Downtown development authority

The purpose of the Downtown Development Authority (DDA) of Casper, Wyoming is to ensure the implementation of programs to make Casper Downtown the best including providing help towards opening a business in Casper. They focus on several key areas like economic development, business recruitment, financial assistance, public relations, and educational programs amongst others. One of their recent achievements is creation of an atmosphere, which is highly attractive as well as conducive for private or business development and this has resulted in $36 million in private investments. One of the important future goals is to ensure continued recruitment of startups and new businesses to Casper Downtown. The contact information is as follows:

  • Address: Downtown Development Authority, 341 W Yellowstone Hwy, Casper, WY 82601
  • Phone: 307-234-5311

Small business development authority in Wyoming

If you are an entrepreneur planning to start a business in Casper then the Wyoming small business development center (SBDC) can play a key role. They can provide guidance and resources towards opening a business in Casper. They helped 108 new businesses to become operational in 2019. They provide information and advice pertaining to several areas of starting a business like Payroll & Bookkeeping, International Trade, grant opportunities, crowdfunding, and SBA Guaranteed Loan among others. SBDC has business advisors for different counties, market research centers, and state offices.

How does IncParadise help you?

Wyoming is one of the best states for starting a new business due to the many advantages: a strong economy, a positive business environment, and small business supportive incentives and infrastructure. There are several cities in Wyoming that offer attractive opportunities for new business formation and one such city is Casper, WY. As your chosen registered agents in Wyoming, IncParadise can help you start a business in Casper quickly and efficiently.

IncParadise is a one of the most respected registered agents in Wyoming with 20 years of experience in new business formation. We have also assisted with the formation of more than 15,000 companies across 50 states and have a registered office in Casper. You can use our services not only for business formation but also to fulfill other business related requirements like Casper WY business license, mail forwarding in Wyoming, obtaining a Tax ID number, a virtual office in Casper, and Wyoming annual reports.

Form your idea into a business in Wyoming!

10 Reasons I Should Incorporate My Business in Wyoming

Date: | Category: | Author: developers

10 Reasons I Should Incorporate My Business in Wyoming

A business corporation is considered as one of the most efficient forms of business. A corporation is a legal entity that has several benefits like providing limited liability protection to the owners or shareholders. It also has tax advantages and depending on the state of incorporation there are several other advantages. If you incorporate in Wyoming then you can take advantage of the fact that there are no personal or corporate income taxes. A business corporation also helps in establishing credibility with potential customers, partners, employees, and vendors.

Start a Business in Wyoming

Wyoming is considered as one of the top states when it comes to offering a business friendly environment. If you are planning to start a business in Wyoming then you will be a part of a strong economy. There are several drivers of the economy like resource development especially oil and natural gas followed by tourism. The travel industry in Wyoming has earned revenue of $196 million through local and state taxes in the travel industry. Entrepreneurs can incorporate in Wyoming online or offline to benefit from the growing opportunities in a variety of sectors or industries like agriculture, forestry, and fishing, manufacturing of durable goods & nondurable goods, transportation and public utilities, Wholesale and retail trade among others.

Wyoming business environment

There are several reasons why entrepreneurs choose to start a business in Wyoming and some of the factors driving their decision are outstanding transportation infrastructure, a well-funded public education system, a good tax climate with low tax burden. The cost to incorporate in Wyoming is also lower than several states like the District of Columbia, Illinois, and New York.

One of the major reasons to incorporate in Wyoming is the strong economy and opportunities and benefits for small businesses. According to the 2020 small business profile created by the office of advocacy, US small business administration (SBA), there are 68,641 small businesses in the state as the Wyoming economy grew at an annual rate of 1.8%. The Real Gross Domestic Product (GDP) of Wyoming in 2019 was $39.31 billion as compared to $38.04 billion in 2018. A growing economy is an indicator of business health and growth.

10 Reasons of Incorporating Business in Wyoming

Every entrepreneur planning to start a business in Wyoming takes into consideration the various factors that are beneficial for the business. There are several “incorporate in Wyoming benefits” that business owners can take advantage of, so let’s start by checking the top 10 reasons to form a business in this state.

1. No Taxes

One of the primary reasons to start a business in Wyoming is the overall tax climate of the state. The 2021 state business tax climate index by tax foundation has ranked Wyoming as #1 – right at the top! Some of the reasons for the tax friendly climate or low tax burden are:

  • The state has no corporate state income tax
  • There is no personal state income tax
  • There are no inventory taxes
  • The state doesn’t have any franchise taxes
  • There is no occupation tax
  • There is no value-added tax

This is not all as the state of Wyoming also has a lower state and average local sales tax rate at 5.34% as compared to some other states like Ohio (7.17%), Alabama (9.22%), Arkansas (9.47%), and California (8.66%). One of the top incorporations in Wyoming benefits is the low sales tax rate.

2. Favorable Tax Exemptions

One of the important motivations for entrepreneurs to incorporate in Wyoming is the favorable tax exemptions. These tax exemptions are considered as business incentive programs directed at new and existing businesses and help to reduce the overall cost to incorporate in Wyoming. Some of the top tax exemption programs include:

  • Manufacturing Sales Tax Exemption: The sale or lease of machinery or equipment used for manufacturing processes are exempt from sales & use tax. Once you incorporate in Wyoming, you will be able to benefit from the manufacturing tax exemption.
  • Sales Tax Exemption on electricity consumption in Manufacturing: The state of Wyoming has the second-lowest electric power rates in the country and any electricity that is used for the purpose of manufacturing is exempt from taxes making it advantageous from a cost perspective.

3. Asset Protection & High Privacy

There are several benefits in incorporating in Wyoming for small businesses. The first time entrepreneurs and asset protection along with high privacy are two of the foremost advantages. Wyoming has one of the strongest asset protection laws in the nation. Unlike some states like California; in Wyoming, creditors will be unable to force sale of assets. Once you incorporate in Wyoming, you will also be able to take advantage of the limited liability protection under which business owners will not be responsible for any business debts or liabilities. The state also ensures businesses can enjoy privacy. The law ensures that business owner, manager or member information is not required to be listed on the state’s public database.

4. Minimum Corporate Formalities

If you are planning to incorporate in Wyoming then there are several advantages and one of them is minimum corporate formalities. You will not face any state restrictions and there is no bureaucracy where the incorporation process is concerned. You can incorporate in Wyoming online as well as offline making the entire formation process highly flexible and time saving.

The required forms for incorporation in Wyoming are available with the office of the Secretary of State along with proper instructions to ensure minimum corporate formalities. You will be required to also submit the Consent to Appointment by Registered Agent form after hiring a registered agent in the state. Since, your chosen agent like IncParadise can file the articles to incorporate in Wyoming; not only will your corporate formalities be reduced but using us would help you save time in incorporation.

5. No Minimum Capitalization

There is a concept of “minimum capital requirement”, which basically refers to the share capital that needs to be deposited by shareholders prior to starting business operations. It is also known as the paid-in minimum capital that a business owner will have to deposit with a notary or bank post incorporation.

One of the salient aspects or incorporate in Wyoming benefits is that according to the United States Corporate Law, there are no minimum capital requirements for a business corporation. This simply means that you can form your business with an amount as small as $1 or with a budget as high as $1 million. This simply means that you can start a business in Wyoming without worrying about any minimum capitalization requirement.

6. Unlimited Stock Issuance

One of the salient advantages of incorporating in the state of Wyoming is that your business can issue unlimited shares of stock for your WY Corp. Some of the other highlights are:

  • You have the flexibility of classifying shares of stock as common, preferred, or a mix of both types.
  • A corporation can issue no par value for shares of stock with the option of changing the value on a later date.
  • When you incorporate in Wyoming, the stock of your corporation can also be issued in exchange for anything valuable like property or services.

7. US citizenship not required

You don’t have to be a US Citizen to start a business in Wyoming. The Internal Revenue Service (IRS) says that a non-resident individual can operate a business in the U.S to generate revenue and pay taxes. In brief, it means that there are no restrictions on foreign ownership of a corporation formed in Wyoming or the United States. There is no extra cost to incorporate in Wyoming even if you live outside the country. You can live anywhere in the world and still own a street address for your business through the Virtual Office Program by IncParadise.

8. Easy to move

The state of Wyoming not only offers businesses tax advantages and a pro-business environment but also makes it easier for companies based outside the state to move into the state with ease. If you have been thinking about how you can start a business in Wyoming without the need to dissolve your existing business then moving to Wyoming is one of the best options. Wyoming is one of the few states that allow you to move any type of business including corporations, LLC, or partnership among others. When you move your business, you will be able to retain the existing Tax ID as well as the original formation or incorporation date of your company.

9. Lower startup costs

One of the major benefits for a new company is the low cost to incorporate in Wyoming. The annual fee in Wyoming is based on the total value of assets within the state and hence is minimum is $50 while the incorporation fee is $100 as compared to several other states where the cost of incorporation and annual maintenance can be quite high.

There are several business owners who opt to go with our virtual office program instead of the regular brick and mortar commercial space. This will help reduce your initial budget thus lowering the total budget to be used to start a business in Wyoming. Your business establishment can also benefit from several business incentive programs, community grant and loan programs, other economic development incentive programs, property and manufacturing tax exemption programs, and Wyoming opportunity zones programs.

10. Transferability of ownership

Entrepreneurs choose to incorporate in Wyoming to enjoy tax advantages, raise capital and limit individual liability. One of the other incorporation in Wyoming benefits is the ease of transfer of ownership. Since, a corporation is a separate legal entity the ownership can be transferred through the sale of its stock. A change in the ownership of the organization will not affect the existence or operations of a business corporation. Transfer of ownership as well as assignment of equity can take place with ease in Wyoming making the state a chosen destination for incorporation.

Ready to start a business in Wyoming?

Wyoming is considered as one of the best states for incorporation and it offers several advantages to other forms of business as well. If you have been wondering how to set up your business corporation in the state then you will be happy to know that we can provide valuable assistance to help you incorporate in Wyoming online. We are one of the top registered agents in the state and have helped individuals and entrepreneurs to start and register their business in Wyoming.

We also offer specialized services Wyoming Mail Forwarding and Wyoming Virtual Office Program. These programs or services have been created keeping in mind the need for a physical street address without having to rent or lease commercial space and for receiving all your important mails.

IncParadise also provides a wide range of additional services that are targeted towards fulfilling requirements like Tax ID (EIN), Certificate of Good Standing, Wyoming Annual Report, and Wyoming Domestication among others. These services will help you to start a business in Wyoming as well as maintain it on an annual basis while being compliant to all Secretary of State rules and regulation.

Do you want to form a new business in Wyoming?

Wyoming LLC and INC Annual Report Fees & Requirements

Date: | Category: | Author: developers

Wyoming LLC and INC Annual Report Fees & Requirements

Once you start a new business in Wyoming there are several requirements you will be required to fulfill including filing a Wyoming annual report. An annual report is a type of comprehensive business activity report based on the preceding year’s activities. An Annual report plays a key role in informing all interested parties like shareholders about the financial performance of a private corporation, public entity, or any other form of business. This is a detailed guide that will provide you with an insight on various aspects of the annual report including what it is, Wyoming annual report filing instructions for LLC and corporation, filing and due dates, and consequences of failing to file it.

Wyoming Annual Report for LLC and INC

The norm is that most states in the US require businesses to file an annual report also known as annual statement, state of information, or entity information. In some states, biennial reports have to be filed while in states like Arizona, domestic or foreign LLC’s are not required to file annual reports. However, there is a requirement for filing an annual report in Wyoming for both business corporations and limited-liability companies. The important question that you probably want to ask is what this report is all about and is your company required to file it?

What is Wyoming annual report?

An annual report is an important document for most forms of businesses and especially for corporations and limited liability companies. The Wyoming annual report may be known by many names including statements of information as it contains vital and comprehensive financial information pertaining to the business entity’s overall performance. In brief, the report makes public the financial performance as well as financial and business activities accomplished during the prior fiscal year e.g., if you are filing an annual report in 2020 along with the prescribed Wyoming annual report filing fee; then it will contain business and financial information of your company for the year 2019.

Most annual reports are state mandated and their filing is governed by the state laws for specific types of businesses. The requirement for filing an annual report in Wyoming and other states became legal after the 1929 Stock Marketing Crash. A Wyoming annual report filing is online and offline and has to be filed with the state although in some states, the report is filed with the Securities and Exchange Commission (SEC). This is also an annual report that is known as a 10-K and is filed by publicly-traded companies using the publicly searchable database called EDGAR filing.

Some of the information that a Wyoming annual report may contain include:

  • Principal address of the Business
  • Names and address of all officers or director depending on the type of business
  • Total assets located in Wyoming – the Wyoming filing system will automatically calculate the fee based on total assets

Filing Your Wyoming Annual Report

The filing of an annual report in Wyoming by LLC, corporations, and other businesses is required by law. Every domestic and foreign corporation and limited liability company that has been organized under the laws of this state and has obtained the right to transact or carry on business in this state will have to file the annual report pursuant to WY Stat § 17-16-1630 (1997 through Reg Sess) and WY Stat § 17-29-209. (2015). The Wyoming annual report filing instructions are provided by the secretary of state (SOS) and businesses have to follow the same. Some of the important aspects to consider while filing this report include the date, the filing with SOS, and the filing fee.

Wyoming annual report due dates

The Wyoming annual report has to be filed with the office of the secretary of state on or before the first day of the month of formation or incorporation. It has to be filed each year if a business is active. So, if you had incorporated, foreign-qualified, or registered your business on December 18, 2020 then Wyoming annual report filing online or offline will take place on or before December 18, 2021.

Fees for filing annual report for LLC and INC

The Wyoming annual report filing fee for a limited liability company and a business corporation is the same although in many other states it is different for different types of business entities. According to the secretary of state, the fee for filing an annual report in Wyoming is dependent on the assets of the entities in the state. The fee for Wyoming assets worth less than $250,000 is $50 and if the net worth of the assets is greater than $250,000 the fee would be total assets multiplied by .0002. You will also be charged a convenience fee of $2.00 to $8.95 depending on the Annual Report License Tax.

Filing your Wyoming annual report to Wyoming SOS

You have to file a Wyoming annual report with the office of the Secretary of State – Business Division along with the fee within the due date. You can opt for Wyoming annual report filing online or offline services. However, if the fee for your annual report is more than $500 then E-Filing or filing online will not be permitted.

Alternatively, IncParadise, one of the most reputable registered agents in Wyoming can help you file annual reports. You can take advantage of our entity management software as well, which can provide you with important notifications and alerts for deadlines including due dates for filing an annual report in Wyoming so that you are able to make your submission on time and thus avoid any penalties.

Consequences of failing to file annual reports

There are times when a business may miss their Wyoming annual report due date. What happens then? Will you have to pay a penalty? According to the Wyoming annual report filing instructions there are no late fees applicable for failure to file your annual report. Instead, your business will be given a 60 day deadline to file the report and failing to do so may lead to dissolution or revocation of your business. Let’s look at an example to understand this:

Example: If a company ABC Inc., was incorporated in Wyoming on 05th March 2019 then the due date for filing of the Wyoming annual report would be onorbefore 05th March 2020. If due to some reason, ABC Inc., failed to file by the due date then the Secretary of State would serve a 60 day notice period within which they can file the report along with the Wyoming annual report filing fee. There will be no penalty or fine for filing within the 60 day period. If ABC Inc., still doesn’t file the annual report within the 60 day period then their license and articles will be revoked and the company dissolved by the order of the secretary of state. Hence, it is extremely important to file the annual report each year and within the due date.

How does IncParadise help you?

Filing an annual report in Wyoming is mandatory for corporations and LLCs by law and there are times when businesses may not be able to file within the due date. This is where IncParadise can help businesses by providing all necessary assistance related to Wyoming annual report filing online and on time.

We understand different businesses have different requirements and we also understand the need to start a business with the lowest possible formation costs. This is why IncParadise offers the Wyoming Mail Forwarding Services and the Virtual Office Program. The mail forwarding services will enable you to receive your mails even if you don’t have an office in the state or if you are travelling while the virtual office will provide you with a street address that you can share with your customers, vendors, and partners.

IncParadise is one of the top registered agents in the state of Wyoming and across the United States. We not only provide assistance for new business formation but also provide a wide range of services so that businesses are able to comply with annual business requirements in the state.

Do you require assistance with filing your annual report?

Wyoming Business License Fee

Date: | Category: | Author: developers

Wyoming Business License Fee

A Wyoming business license or any business license for that matter is basically a type of permit that is issued by state or government agencies or even local counties to allow individuals or businesses to conduct their business within a specific geographical jurisdiction. Some states may require a business to apply for multiple licenses and permits and their requirements and fee will vary depending on the business activity and other factors. Hence, we have created this guide to provide informational assistance pertaining to Wyoming business license application, license and permits based on types of business, and general permit requirements in Wyoming among others.

Wyoming Business License

The state of Wyoming does not have a state business license like some of the other states have. So how does a business acquire a Wyoming business license? The license is issued in the state according to the type of business being conducted or the business activity. Hence, it is always best to conduct a Wyoming business license search prior to applying for a license.

It is important to also understand that not all the businesses in Wyoming may require a license or a permit to conduct their business. At the same time, some entities or activities may warrant the issuance of Wyoming business license from the state departments as well as counties. Some companies may require multiple licenses or permits and will be required to file Wyoming business license applications for each license. Let’s look at an example to understand this.

Example: If you start a food service establishment or business that serves liquor in Cheyenne, Wyoming then you will require a business license and the Wyoming business license fee would vary depending on several factors. The license will be issued under the Wyoming Food Safety Rule and will be issued by the Wyoming Department of Agriculture or a local health department. You will have to follow the Standard Operating Procedures (SOP) and food establishment inspections will be carried out prior to issuance of license. Since your establishment serves liquor; you will have to apply for a liquor license with the Wyoming liquor division or with the office of the County Clerk in Cheyenne. If you want to expand to doing catering or off-premise sale of malt beverages then you can conduct a Wyoming business license search for the permits or additional licenses you may require.

Some of the important categories of regulatory business licenses and permits in Wyoming include:

  • Agriculture
  • Health and safety
  • Environmental protection
  • Transportation
  • Large-scale projects
  • Public land

Want to know what Wyoming licenses your business requires?

Wyoming small business information

As a small business, apart from fulfilling the requirement of a Wyoming business license search, you will also need information pertaining to a variety of aspects right from business formation or availability of state based resources. One of the best places to check informational resources to check Wyoming business license fees and other small business information is the business & UCC center of the Wyoming Secretary of State (SOS) website. This section provides information pertaining to starting a new business, various online business services, annual requirements and maintaining your business, forms and FAQs.

If you are looking for business resources pertaining to accessing new markets, business financing, Wyoming business license, sales tax, or specialized assistance then the Wyoming Business Council (WBC) website will be helpful. The Wyoming Business Council (WBC) is a department of the State of Wyoming’s Economic Development Agency and provides information on opportunity zones and their benefits. The WBC also provides a detailed Wyoming business license application guide also known as the Guide to Business Permitting and Licensing in Wyoming as well as a checklist for starting a business in Wyoming.

The Wyoming Small Business Development Center (SBDC) Network is also a very resourceful website for new business owners in the state. It has been formed out of a partnership between the University of Wyoming, the U.S. Small Business Administration (SBA), and the Wyoming Business Council (WBC). They provide business expertise through various training programs to help you in starting and growing your business. The resources will also help you identify business specific requirements including applying for a Wyoming business license and innovation funding.

The U.S. Small Business Administration (SBA) is another organization that provides useful resources and information to small businesses. It is a United States government agency that specializes in providing support to small businesses and entrepreneurs in the form of their lending programs, entrepreneurial development programs, Federal contracting and business development programs, Wyoming business license renewal programs etc.

General Permit Requirements in Wyoming

The “General Permit Requirements” in Wyoming specify categories that provide an insight into the various requirements of a Wyoming new business. This can include Wyoming business license requirements in the state as well as several other requirements like unemployment insurance & employer registration or Occupational health and safety. Let us look at the various general permit requirements in the state.

Unemployment insurance & Employer registration

Unemployment Insurance (U.I.) is a type of fund that has been established by provisions of the Wyoming Employment Security Law. It has been designed for compensating any eligible workers for a specific portion of wage loss if they lose their jobs due to no fault of theirs. The primary objective is to provide aid to unemployed workers through a weekly income as they look for employment. The unemployment insurance funds are paid by the employer or business as an unemployment insurance tax.

The unemployment insurance takes into account full-time, part-time, as well as casual workers. If you are a business owner then you will be required to apply for employer registration. You can apply for this before or after getting your Wyoming business license. You can register from:

  • Unemployment Insurance division – Employer accounts section
  • 100 W. Midwest
  • P.O. Box 2760
  • Casper, WY 82602
  • (307) 235-3217

New hire reporting

New hire reporting along with employment eligibility verification seek to preserve jobs and this is governed by the Immigration reform and control act of 1986. The job preservation is meant for those who are legally entitled in the state of Wyoming and the United States to work. As an employer, you will be required to verify employment eligibility of anyone hired after November 6, 1986. You will be required to fill and submit form I-9 for the same, which is for verifying the identity and employment authorization of individuals being employed. Unlike the Wyoming business license application, which is issued by the state, the I-9 form is issued by the United States Citizenship and Immigration Services. It is also important to note that Wyoming has a new hire reporting center just like other states and you have to report any new hires at this center.

Federal requirements

One of the important requirements for any new business apart from Wyoming business license is the federal tax requirements. According to the Internal Revenue Service (IRS), some of the major forms of businesses like Sole Proprietorship, partnership, Limited Liability Company (LLC), C Corporation etc., have different federal tax responsibilities. The Employer Identification Number (EIN) is especially required if you have employees and will be paying wages to them. It is hence imperative for businesses to apply for and obtain an EIN or Employee Identification Number as this will facilitate the filing of tax returns with the IRS.

Local licensing requirements

Different states have different licensing requirements! If you are forming a new business in Wyoming then you will need to conduct a Wyoming business license search with the city, town or county authorities, where you have or are planning to operate your business from. This will help you to identify the local licensing requirements. Each county may have separate requirements, different Wyoming business license fee, and rules and regulations pertaining to issuance of the permit or license. The City Clerk or County Clerk’s office will be able to provide you with detailed information regarding a business license for specific business activities. You can alternatively obtain our definitive guide on business licenses.

Identify the Wyoming Licensing Requirements for your business!

Workers’ compensation

Wyoming Workers’ Compensation is a state program and is considered to be as important as a Wyoming business license. The Workers’ compensation is applicable only when your company has employees and this is governed by the Wyoming Workers Compensation Act, WY Stat § 27-14-101 (2018). The intent of the act is to provide a benefit system for the workers, so that employers are able to derive the necessary medical benefits if injured in the line of work. The benefits depend on the extent of the injury and can include Medical, hospital and ambulance expenses; private nursing or nursing home care (WY Stat § 27-14-401, 2018); and temporary total disability as defined under W.S. 27-14-102(a)(xviii) among others. It is the responsibility of the employer to apply for the coverage of eligible employees.

Occupational health and safety

The Occupational health and safety of every employee hired is foremost and this is more so for employees classified in an occupation or industry designated to be hazardous by law. The health and safety of workers are overseen by the Wyoming Occupational Safety and Health Administration (Wyoming OSHA), which is a part of the Wyoming Department of Workforce Services. As a part of the Wyoming OSHA Voluntary and Cooperative Programs, free health and safety assistance is offered to Wyoming employers upon request. The Wyoming OSHA is also responsible for enforcing the occupational safety and health standards. As a part of the enforcement, OSHA compliance officers may inspect any workplace to check for hazardous conditions and if violations exist then citations will be issued. You can get more information from:

  • Wyoming Department of Workforce Services
  • 5221 Yellowstone Road
  • Cheyenne, Wyoming 82002
  • Phone: (307) 777-7786
  • Fax: (307) 777-3646

Obtain Professional License

A professional license is different from a Wyoming business license as it refers to licensing for a specific niche or occupations. If you are a professional engineer and plan to start a firm that oversees engineering projects then you will need to obtain a professional engineer license prior to starting your business. The requirements for a professional license are governed by 2014 Wyoming Statutes, Title 33 – Professions and Occupations. You will need to search for your license based on your profession or occupation and apply with the respective professional board like the Board of Architects and Landscape Architects, the Board of Professional Engineers and Professional Land Surveyors. You can even file the for a Wyoming business license application for professionals with the office of the county clerk.

Wyoming Business License Fees

In the state of Wyoming, business licenses and permits are issued by different regulatory bodies, cities, and county clerk offices. There is no single state business license and hence the Wyoming business license fee is dependent on the following:

  • Location of your business: This will help you identify the city or county that will issue the license. You will also have to submit the Wyoming business license renewal with the same county or city.
  • Type of business activity: The Wyoming business license fee will vary with the business activity and the city or county e.g., the business licensing fee in Evanston is fixed and based on number of employees while licensing or permit fee in Cheyenne is business activity driven.

If you face any problems or have queries pertaining to Wyoming business license fee, license application, or Wyoming business license renewal then you can contact our team and they would be glad to assist you.

How does IncParadise help you?

Each business has different objectives and business activity and will be located in different cities or counties across Wyoming. Hence, the Wyoming business license requirement will be different for each business. This is why, at IncParadise, we focus on providing a service that will cater to your specific licensing needs. We can provide guidance and assist you to obtain your business licenses and permits while maintaining compliance with the Wyoming licensing regulations.

IncParadise offers Mail Forwarding Services to new businesses as well as a Virtual Office Program to ensure that you can run your business from anywhere in the world. The Wyoming mail forwarding services will help you receive all your important and business-related mails and the virtual office program will provide your company with a physical address.

IncParadise, is a full-fledged, top-of-the-line registered agent in Wyoming and has a strong presence in all 50 states. We offer a wide variety of services based on the different requirements that any business may have in the state. Your business can benefit from our bouquet of additional services that vary from obtaining an EIN to S Corporation election, mail forwarding services, Certificate of Good Standing, Business License Report, domestication among others.

Form a new business in Wyoming quickly and efficiently!