Start a business in Wyoming

Entrepreneur’s Guide to Starting a Business in Wyoming

Wyoming’s business-friendly environment makes it one of the top states for new business. There are several factors that help create this perfect environment to start a business in Wyoming. One of the important factors is low taxes. In fact, Wyoming does not have any corporate or income tax. There is no occupation, franchise, or value-added taxes in this state. In addition to low taxes, the state has pro-business streamlined regulations and an abundance of resources, including a skilled workforce.

• Wyoming has the second-lowest overall tax burden in the nation
• Mature firms in Wyoming rank amongst the top three across the nation for the lowest effective tax rate
• The 2024 State Business Tax Climate Index reveals that Wyoming is ranked #1
• The state ranks #1 for mature or established operations and 7th for new operations
• Wyoming is the first state in the US to allow Decentralized Autonomous Organization (DAO)
• The state has a robust transportation infrastructure, including 9 commercial airports, 915 miles of interstate, and class 1 railroads.
• Wyoming is the world’s first Token Taxonomy

Why Choose Wyoming To Start a Business?

Wyoming, the 10th largest state, has a strong economy driven by tourism, mineral extraction, and agricultural commodities. The real GDP of Wyoming in 2019 was $39.31 billion, and the economy grew at an annual rate of 1.8%. According to the 2019 small business profile by the U.S. Small Business Administration, it is home to more than 66,000 small businesses. Entrepreneurs prefer to start a business in Wyoming as it offers several advantages to all forms of businesses. Some of the top benefits that businesses can enjoy are:

• No State Taxes – When you register a business in Wyoming, one of the salient advantages is that there are no State taxes like corporate and personal income taxes. Wyoming also doesn’t have Inventory tax, Franchise tax, Business or “per-capita” tax, Gross receipts tax, and Excise tax.
• Non-US citizens can form a business – You are not required to be a U.S. citizen to start a business in Wyoming. It is also important to note that there are no extra fees required to register a new entity, even if you are a non-US citizen.
• Lower startup costs – A new business has to register with the Wyoming secretary of state in order to operate their business. There are no hidden costs. The initial formation or incorporation fee is also lower than in several other states.
• Strong Asset Protection and Privacy Laws – When you form a new company, you will benefit from the state’s asset protection and privacy laws. Information pertaining to LLC members or managers is not made available through public databases, so businesses enjoy privacy.
• Easy to move – This is a benefit for entrepreneurs who have formed a business in their home state and want to move the business to Wyoming. The state ensures you are able to start a business in Wyoming with ease as it is one of the few states that allow the moving of an established business from another state.
• Business Incentives – When you register a business in Wyoming, you can take advantage of a variety of state incentive programs. Some top incentive programs include direct financial incentives, workforce development training incentives, and industrial development bonds.

Steps to Start a Business in Wyoming

Wyoming is one of the few states that have been consistently voted as one of the best business-friendly environments in the country. The state enjoys a high rate of economic growth, with the biggest contributor being mining. Some of the top industries that attract entrepreneurs to start a business in Wyoming include travel and tourism, manufacturing, real estate, logistics, consumer services, and technology. The question is, how do you start a business in the state or what is the process for registering and obtaining a Wyoming business license? The following steps will provide an insight into the important requirements for making a business fully operational.

1. Prepare a Wyoming Business Plan

A business plan is like a roadmap of a business and hence critical to its formation, operation, growth, and expansion. A business plan is essential before you start a business in Wyoming. A business plan is like a roadmap of a business and hence critical to its formation, operation, growth, and expansion. A business plan is essential before you start a business in Wyoming. It is important to identify the purpose of a business plan. The purpose is twofold. The first would be to provide guidance towards managing as well as scaling your company. The second would be to help you in obtaining the necessary funding. Most business plans contain almost the same basic information. The various sections of your business plan should include the following:

• Executive Summary
• Description of Company
• Market Analysis
• Company Management and Organization
• Products and Services
• Marketing and Sales
• Financial Analysis
• Logistics and Operations

2. Choose Business Structure for Wyoming Business

Choosing a business structure is as important as registering a business in Wyoming. A business structure is basically a legal structure of your company and has to be mentioned when filing for registration in the office of the Wyoming Secretary of State. The type of business structure you choose will not only define how much tax you will pay but also highlight the personal liability you may face.

• LLC – A limited liability company is separate from its owners and has its own responsibilities and liabilities. One of the greatest advantages of this type of structure is limited liability protection. This means that the private assets of members of an LLC will not be at any risk if there is a lawsuit against the company. A limited liability company can choose to be taxed as an S Corporation, and this structure allows flexibility in the distribution of profits to its members or owners.
• Corporation – A C Corporation, also known as a traditional corporation, enjoys certain advantages like limited liability. This type of entity can also choose to be taxed as an S Corporation. One of the top benefits of this legal structure is its ability to raise capital through the issuance of stock. In fact, venture capitalists (VCs) find it easier to invest in C corporations from a tax perspective. A C-corp has perpetual existence, which means it will remain operational even if the owners leave the company or die.
• DAO LLC – In fact, you can now form a new LLC structure with the Wyoming secretary of state, known as a Decentralized Autonomous Organization (DAO). When you register a business in Wyoming as a DAO LLC, its formation will be governed by 2022 Wyoming Statutes, Title 17—Corporations, Partnerships and Associations, Chapter 31—Decentralized Autonomous Organization Supplement.

3. Naming Your Wyoming Business

A name is integral to a business as it plays a key role in different areas associated with the business itself, like advertising and branding. A business name helps in communicating business strategy to prospective consumers, media, investors, and even employees. Even the process to register a business in Wyoming requires you to first conduct a Wyoming business name search and then reserve the name. Your business name should follow the naming guidelines in Wyoming business statutes, and they are:

• You need to use the right phrases, words, or abbreviations according to the chosen business structure.
• If you want to register an LLC, then it is important to use Limited Liability Company, Ltd, Liability Co., LC, or LLC
• If you want to start a business in Wyoming as a Corporation, then it is important to use “corporation,” “incorporated,” “company,” “Corp.,” “Inc.,” or “Co”
• The business name should be distinguishable from any other name in the records of the Wyoming Secretary of State
• Use of certain words prohibited like “bank” and “insurance”

How can you conduct a Business name Search?

It is essential to conduct a Wyoming business name search. This is also known as a name availability search. It will reveal whether your chosen name is available or not.

How to reserve your business name in Wyoming?

In order to register a business in Wyoming, you will need to reserve the available business name. You can reserve an LLC name or a corporate name by filling out the respective reservation forms. You have to submit it to the Wyoming Secretary of State along with a filing fee of $60. You can reserve the name for a period of 120 days.

How to reserve a Fictitious Name?

If your company is a foreign entity, you can file a fictitious name. The prerequisite for registering a fictitious name is that a Wyoming business search reveals that your current foreign LLC or INC name is unavailable. The forms for a foreign LLC name and a foreign INC name are different. You have to submit the form to the Wyoming secretary of state along with a filing fee of $60.

How to register your Trade Name?

A trade name is also known as a Wyoming DBA. If you want to use any name other than the legal name of the owner, filing a trade name becomes important. You will need to file an Application for Registration of a Trade Name. The filing fee is $100, and the processing time can be a maximum of 15 business days.

4. Choose Your Location for Wyoming Business

If Wyoming is your chosen state for starting a business, then it is important to identify the perfect location to launch the business. Several factors determine the location, such as transportation infrastructure, proximity to the local markets, distribution network, competition, accessibility, and security.

5. Register Your Business with Wyoming SOS

If you are planning to register a business in Wyoming, its formation will be governed by the 2015 Wyoming Code, Title 17—Corporations, Partnerships, and Associations. Depending on the type of business entity you are planning to register, such as an LLC or Corporation, you will be required to submit the corresponding application with the office of the Wyoming Secretary of State.

• If you want to register a Wyoming LLC, then you will need to file Articles of Organization.
• If you want to establish a Wyoming corporation, then you will be required to file Articles of Incorporation.

Start Your New Business in Wyoming Today!

6. Draft Internal Operating Agreements (LLCs) or Bylaws (Corporations)

There are documents that can be used to register a business in Wyoming, and then there are internal documents or records. These are internal business documents that your company needs to keep a record of. You have to draft these documents based on your entity structure. They will not be submitted to the Wyoming secretary of state. However, you may be required to show them to a third party like the IRS, bank, or a financial institution.

• Wyoming LLC Operating Agreement – This will be the rule and regulation book of your LLC. It will define how your limited liability company will conduct its business. This includes making decisions, distribution of company profits, managing operations, percentage of membership interests, and detailed voting requirements. Your LLC operating agreement will take into consideration every aspect and scenario that the company may face, including dissolution. It is not easy to draft an operating agreement, and templates available online might confuse you. We at IncParadise can help you draft an LLC Operating Agreement.
• Wyoming Corporate Bylaws – A bylaw is the rule book for your corporation and has to be adopted and followed internally. It is also known as company bylaws. This is a type of legal document that will set forth rules related to governing the day-to-day operations of your corporation. Bylaws will provide details about how your company will appoint its directors and officers, hold shareholder meetings, handle the issuance of stock to shareholders, and resolve conflicts of interest, among others. There are several components that come together to complete corporate bylaws. Hence, there is a possibility that you may miss out on something important. IncParadise, one of the top Wyoming registered agents can provide necessary guidance towards creating detailed bylaws.

7. Obtain Wyoming Licenses and Permits

Once you register a business in Wyoming, you will need to apply for a business license. It is important to note that every business may not require a license, but at the same time some businesses may require multiple licenses. You will need to identify the type of licenses, from state licenses to professional and local permit requirements. If you are wondering how to get a Wyoming business license, then let’s briefly look at various licenses applicable in the state:

• General Business License – Some states have a general business license, which is issued when you form an LLC or a corporation. Wyoming does not have a general business license at the state level.
• Professional License – When you start a business in Wyoming, one of the important licensing areas is that of professional licenses. This type of license is required when the primary activity of your company is associated with listed licensed occupations in Wyoming. In order to identify if your business activity requires you to apply for professional licenses, you will need to check the Directory of Licensed Occupations in Wyoming. This has been compiled by the Research & Planning (R&P) section of the Wyoming Department of Workforce Services. There are different boards under the professional licensing board responsible for the issuance of a Wyoming business license for a specific profession or occupation.

  For example, the Wyoming Board of Architects and Landscape Architects (WBALA) is responsible for issuing occupational licenses to Architects and Landscape Architects.

• Sales Tax License – If you register a business in Wyoming and your company sells or offers products, services, and specific tangible property, a sales tax license is required. You will have to first register your company with the Wyoming Department of Revenue by submitting the Sales and Use Tax License Application. This is also known as a sales tax permit, and the licensing fee is $60.
• Local Business Licenses – Local licenses are issued by the city or county in which your company is based. This type of Wyoming business license is normally issued by the city clerk’s office. The license application and fee will depend on the type of business activity.

  For example, if you operate a “Bed and Breakfast” in Cheyenne City, the licensing fee would be $65. The fee and type of license would also vary from one city or county to another. You may even be required to apply for local zoning permits.

8. Obtain an EIN & Understand Your Tax Burden

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An Employer Identification Number (EIN) is required mostly by businesses that have employees or multiple members, partners, etc. If you are planning to start a business in Wyoming, whether an LLC or a business corporation, then you may be required to apply for an EIN. This is a unique nine-digit tax ID number, also known as the Federal Tax Identification Number, issued by the Internal Revenue Service(IRS).

• Federal Tax – A limited liability company is a pass-through entity, and hence, the tax will be passed on to the members. So, members are supposed to file an income tax return on the profits of the LLC. Since the state of Wyoming doesn’t have any personal income tax; the members will not be required to file this tax. An LLC may be required to file federal self-employment tax at a rate of 15.3 percent. Since, there is no corporate tax in the state; hence corporations won’t have to file this tax.
• State Business Tax – When you register a business in Wyoming, one of the important state taxes to consider is the sales tax. State sales tax is levied in most states, and the rate in Wyoming is 4 percent. This is irrespective of the type of business you form. Each county in the state has a flat 4% state sales tax. In addition to this, counties have the ability to seek voter approval to add 1 percent to the existing sales tax. This means it will increase from 4 to 5 percent. This is also known as the 5 percent optional tax. There is also a third type of sales tax that you may encounter in this state. It is known as the optional “6th penny” or 6 percent special purpose tax. Apart from this, if you own property or real estate in Wyoming, you will be required to file property taxes. The current rate is 9.5 percent of the value of your property.

Want to Apply for a New EIN for Your Business?

9. Open a Business Bank Account

One of the important elements of establishing sound business practices is opening a business bank account. Ideally, you should open a bank account before you register a business in Wyoming but you can do this after forming your business as well. The requirements for opening a business bank account can vary from one bank to another. The common general requirements are:

Additional Steps of Operating a Business in Wyoming

If you conduct a Wyoming business search for resources, especially for an LLC or corporation, then here are some more aspects to consider.

Business Insurance

When you start a business in Wyoming as an LLC or a corporation, it will help protect your personal assets. But what about getting a lawsuit? How will you protect your business or company premises from natural calamities like floods or fire? Proper business insurance can help protect your business assets. There are several types of insurance that you can choose from. However, if your company has employees, then the federal government requires you to have workers’ compensation, unemployment, and disability insurance. Another type of important insurance cover is liability insurance. Let’s take a look at these insurances in detail.

Unemployment & Workers Compensation Wyoming

Once you have registered your business with the Wyoming secretary of state, you need to apply for Unemployment & Workers’ Compensation. The Wyoming Workers Compensation Insurance provides protection to employers as well as employees, especially in cases related to work injury, disability benefits, or illness. It is administered by the Workers’ Safety and Compensation Division of the Wyoming Department of Employment.

Disability Insurance

This is a type of insurance cover that will protect your business against any loss of income caused by disability. If you choose disability insurance, then it will cost about 2 percent of the annual salary of the employee whom you are planning to insure. The actual may vary according to some factors like the policy features and the insurance carrier. You can even choose between a short-term disability policy (pays for a year) or a long-term disability (pays for the number of years mentioned in the policy). This type of insurance covers everything from small surgeries to long-term illnesses.

Liability Insurance

This type of insurance is also known as business liability or general liability insurance. The primary objective of this insurance is to provide protection to your business against some of the common risks associated with running a company.

Company Website

A website will not only help your customers to find you with ease but also be a strong platform of communication. So, how or where does one begin? In order to build your company website, you will need to follow certain steps, which are:

• Domain name – A domain name is the key to building a company website. It is always recommended to keep your domain name short and use keywords.

  For example – If you are in the auto parts repair business in Wyoming, then you should choose a domain name representing your business, location, or brand, like autorepairWY.com.or casperautorepair.com

• Domain Registration – If your chosen domain name is available, you need to register it. You can choose a domain registrar online, and some may also provide a free business email account.
• Website Design – There are two options for website design. You can hire a web designer or opt for website builders and tools available over the internet.

Apply for Trademarks

According to Wyoming statutes, a trademark is defined as “any name, word, symbol or device or a combination of these that will be adopted and used by an individual towards identifying and distinguishing a unique product of a company or person. Trademark registration is governed by Wyoming Statutes, Title 40 – Trade and Commerce, Chapter 1 – Trademarks and Service Marks.

Annual and Ongoing Requirements

If you register a business in Wyoming there are some annual and ongoing requirements that you or your business will be required to fulfill. Although businesses are not required to file any annual franchise tax, they are required to file an annual report, and this is especially true for LLCs and business corporations. The annual report can be filed online or submitted through mail to the Wyoming secretary of state along with the fee.

FAQs on Starting a Business in Wyoming

New business registration is never as easy as it looks. You may have several queries on how to start a business in Wyoming or the cost of registering a new company, among others. This FAQ section has been created to answer some of the most common questions that first-time business owners have.

What types of businesses are a good fit for Wyoming?

Wyoming is a state that offers plenty of opportunities and resources to fresh startups and existing businesses. You can start a business in Wyoming as an LLC or corporation and even register the new entity structure of DAO (Decentralized Autonomous Organization) LLC. Yes, you can even start a home-based business, and there are several top industries to choose from. Sole proprietorships and partnerships are also a good option because of the pro-business regulations and low formation and operational costs of businesses. A reputed Wyoming registered agent like IncParadise can provide information and guidance regarding establishing the right type of business.

Is Wyoming a good place to raise capital for my business?

Wyoming is a state where business and innovation have joined hands to modernize industry and create long-term sustainable solutions for the industry, community, and state. Wyoming is not only attractive for entrepreneurs and startups but also for investors. It’s easier for corporations to attract investors from a tax perspective than it is for LLCs. But worry not, as there are several other options for raising capital for other forms of businesses. These include securing Wyoming small business grants, equity financing for high-growth companies, seed funding for startups, Wyoming secretary of state loan programs, and crowdfunding, among others.

What are the different business structures available in Wyoming?

Wyoming offers a very good business climate and you can leverage it after you register a business in Wyoming. There are different types of structures to choose from. Each structure has its own advantages and disadvantages. The Wyoming Secretary of State requires specific structures to submit registration or formation documents to the state. The different structures you can choose from include business corporations, limited liability companies (LLC), non-profit entities, industrial corporations, partnerships, limited partnerships, and sole proprietorships.

How much does it cost to register a business in Wyoming?

The cost to register a business in Wyoming may vary depending on the type of entity structure chosen by you.

What taxes will I pay on my business in Wyoming?

Wyoming is preferred by business owners and startups as the state does not have any individual income tax. The state also does not have any corporate income tax. However, the state has some other taxes that you may be required to file. These taxes will be applicable depending on the type of business entity and activity.

What are the ongoing legal requirements for maintaining a business in Wyoming?

Once you register a business in Wyoming, you must comply with certain ongoing legal requirements of the state. This will ensure you can maintain a good standing in the state. The most important requirement is an annual report. The filing fee for the annual report is known as the license tax.

How can I find qualified employees in Wyoming?

Wyoming is home to a growing pool of talented professionals. If you start a STEM-centric business in Wyoming, then you will be happy to know that the state has a strong STEM workforce. The state of Wyoming has now increased its STEM workforce significantly compared to before. In fact, currently, one-third of the state’s workforce is in science, technology, engineering, and mathematics (STEM), and this is because of the top colleges, universities, and educational institutions in Wyoming. You can even hire STEM professionals right out of college.

Ready to Start a Business in Wyoming?

Every business needs a good platform and a pro-business environment to start, and this is where the state of Wyoming provides an advantage. If you have wanted to register a business in Wyoming and are wondering how to go about it, then IncParadise can provide you with valuable assistance. We are a reputable Wyoming registered agent with experience and expertise in new business formation. IncParadise has helped thousands of businesses in Wyoming to successfully form an LLC or a business corporation.