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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.