How To Form An LLC In Wyoming: Step By Step Guide (2020)

How To Form An LLC In Wyoming
Step 1: Choose a name for your Wyoming LLC
Step 2: Appoint a Registered Agent in Wyoming
Step 3: File Articles of Organization
Step 4: Draft your Wyoming LLC Operating Agreement
Step 5: Register a Wyoming LLC Employee Identification Number (EIN)

As long as your business meets all of the requirements, there are quite a few benefits that come with forming a Wyoming LLC:

  • No state taxes
  • Asset protection and limited liability
  • Members nor Managers are not listed with the state.
  • Best asset protection laws
  • No citizenship requirements
  • Transferability of ownership
  • ...and much more!

In this guide, we will walk you through all of the steps you need to follow in order to:

  1. Register your LLC in Wyoming
  2. Protect your LLC and personal assets
  3. Register and stay compliant with local, state and federal taxes.

EDITOR'S NOTE

If you would rather a professional company form your LLC for you, here are our two recommendations:

Option 1

Form your LLC with ZenBusiness ($39 for services + state fees)

Form With ZenBusiness

Option 2

Form your LLC with LegalZoom ($149 for services + state fees)

Form With LegalZoom

Form Your LLC In Wyoming: 5 Steps

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Step 1: Choose a name for your Wyoming LLC

Choosing a name for your business is one of the first and most important steps to forming your LLC.

Wyoming Naming Requirements

There are certain guidelines to follow when naming your business in Wyoming:

  1. Your name must include Limited Liability Company, LLC or Limited LC
  2. You may be required to fill out additional paperwork if your entity involves specific words such as Bank, University, Attorney, etc.
  3. Your name must be easily distinguishable from a government agency (ie. FBI)
  4. Your name must be different from any other corporation or LLC established in Wyoming

Check if the name is available in Wyoming

Your LLC’s name must be distinguishable from other LLCs filed in Wyoming. You can check availability on the Secretary of State business name database here.

Keep in mind that you are able to reserve a name for up to 120 days by filling out the application below. The filing fee is $50 and must be filed by mail.

Download the Application for Reservation of Name!
LLC-NameReservation.pdf
Download

Tips on naming your business

In addition to the requirements from the State, there are some general naming guidelines that may help you down the road as well.

We've put together a full guide here for naming your business here but will also cover the most critical pieces below:

Is your URL available? Social media handles?

You can check for domain availability here:

Find a domain starting at $0.88

powered by Namecheap

As soon as you resonate with a name (or names), secure the domain and social media handles as soon as possible to ensure they don't get taken.

Other general naming tips

  • Consider SEO when naming your business
  • Consider naming your business something that reflects what you do and/or who you are
  • Keep it simple! Easy to spell, easy to pronounce and easy to remember
  • Try not to pick something too limiting that could impact your businesses growth in the future!

Check out our full naming guide here.

Here is a video covering all factors to consider when naming your LLC:

Do I need a DBA?

A DBA is a new name a business operates under their legal name. DBA can also be referred to as a fictitious name, assumed name, or trade name.

If you are forming an LLC, you have already registered your business name and do not need a DBA.

However, if you would like to conduct business under a different name, you can register a DBA.

Learn how to file a DBA here.

Do I have to register my business name?

When starting a corporation, LLC or limited partnership, your business name will be registered automatically once you file your articles of organization with the State.

Step 2: Appoint a Registered Agent in Wyoming

As apart of the LLC filing process, you are required to appoint a registered agent in Wyoming.

What is a registered agent?

A registered agent is an individual that is responsible for receiving your legal documents and can act as your business point of contact with the state.

What does it take for someone to be a registered agent?

The registered agent must have the following:

  • Physical street address in Wyoming
  • Be 18 years or older
  • Be available (in person) during normal business hours
  • Wyoming resident or business entity authroized to do business in Wyoming

Can I elect myself or a member of my team to be the registered agent?

The answer is yes!

A member of the business (or yourself) can be elected to be the registered agent of Wyoming as long as they meet the above requirements.

What type of documents will my registered agent receive?

Your registered agent will receive documents such as tax forms, legal docs, official government correspondence (ie. annual report), and summons/ notice of a lawsuit.

Step 3: File Articles of Organization

In order to make your LLC official in the state of Wyoming, you will need to file the articles of organization through the Secretary of State.

There are two ways to do this:

Option 1

File Online with the Secretary of State ($102 filing fee)

FILE ONLINE

Option 2

Download form & file by mail ($100 filing fee), and mail to this address:

Wyoming Secretary of State
2020 Carey Avenue, Suite 700
Cheyenne, WY 82002

FILE BY MAIL

Wyoming Filing Article Requirements

Here are the items you will be expected to provide:

  • The company name (please note the name must end with either "LLC or Limited LC"
  • Your business mailing address
  • A signed "Consent to Appointment" by your registered agent. When filing online, check the box saying you have consent. When filing by paper, include a signed document by your agent.
  • An email address for future coorespondences
  • Name and signature of the organizer
  • Payment for filing fee ($100-$102)

How long will it take to form my LLC?

If you submit and make payment for the articles of the organization online, the formation will be immediate.

If you file by mail, this could take 5-7 business days.

Step 4: Draft your Wyoming LLC Operating Agreement

Although it's not required in Wyoming to have an operating agreement, you may thank yourself later down the road for having one.

It's important to note that if you do plan to create an operating agreement in Wyoming, you will not need to file this with the state. It can be used solely for internal legal purposes. This varies state by state.

Here are three reasons why this document is critical to have:

  • Protects your business’s limited liability status
  • Solidify member agreements (everything is recorded in writing and there is no room for miscommunication)
  • Prevent the state from managing your agreements based on their default rules (in the case that the state needs to step in to help manage your business)

Here are two different types of sample agreements you can download:

  1. Single Member Operating Agreement
  2. Multiple Member Operating Agreement

Download the Single Member LLC Operating Agreement!
Single_Member_Operating_Agreement.pdf
Download

Download the Multiple Member LLC Operating Agreement!
Multiple_Member_Operating_Agreement.pdf
Download

What is the purpose of an LLC operating agreement?

An LLC operating agreement is a legal document that outlines the ownership and operating procedures of your LLC.

The reason you may find this helpful is that it can essentially cover you in the case that there is confusion or conflict down the road. The document will hold everyone accountable and ensure the owners of the business are on the same page.

Am I required to file my operating agreement with the state?

In this state, you are not required to file your operating agreement with the state.

This agreement should be used internally and kept on file for future reference.

Step 5: Register a Wyoming LLC Employee Identification Number (EIN)

EIN's are a 9 digit number given to you by the IRS to help identify businesses for tax purposes.

How Do I Apply for an EIN?

It's very easy (and free) to apply for an EIN. You can apply through the IRS a few different ways:

Option 1

Apply for an EIN from the IRS online

APPLY ONLINE

Option 2

Apply for an EIN via mail or fax

Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Fax: (855) 641-6935

DOWNLOAD FORM

Do I need a social security number to get an EIN?

No, you do not need a social security number to get an EIN. Here are the steps to follow when filling out the form (if you do not have a SSN):

  • Fill out IRS Form SS-4
  • Leave section 7b blank
  • Call the IRS at (267) 941-1099 to complete your application

Why do I need an EIN?

An EIN is essential for your business to operate. Here's what this 9 digit number allows you to do:

  • Open a business bank account
  • Hire employees
  • File and manage Federal and State Taxes

Here is a video that explains everything you need to know about getting an EIN:

How much does it cost to get an EIN?

It is free to get an EIN with the IRS! The process is easy, quick and can be done online or by mail/fax.

Is it required to get an EIN for my LLC?

If you have operate an LLC with employees or with more than one member, it is required by the IRS that you have an EIN.

How To Protect Your Small Business From Your Personal Assets

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Once you have formed your LLC, it's critical that you take the right steps to protect your small business from your personal assets.

If done properly from the start, this could save you months, if not years of time, and potential legal issues that could arise.

To protect your small business and your personal assets, follow these two steps in the beginning:

1. Open a separate business bank account
2. Get small business insurance

We get into all the specifics for each of these below:

Open A Business Bank Account

By opening a bank account specifically for your business, you are protecting yourself (and your personal assets) from any potential risk.

Basically, try and avoid mixing your personal and business accounts at all costs.

1. Choose a bank

There are hundreds of banks out there, and it can be overwhelming to find one that's right for your business.

Here are some factors you may want to consider when determining which business bank account you need:

  • Location - Is your bank close enough that you can easily make deposits or get cash?
  • Low Fees - Make sure to understand any and all fees associated with setting up and maintaining your bank account. Ask for a list - banks usually try to keep this hidden and in the fine print.
  • Online Banking Services - Make sure you can easily navigate through your online portal and you have easy access to everything you need.
  • Line of Credit - What do your options look like (even if you don't need this now, you may need this down the road).
  • Every bank has something that differentiates them from the rest, so make sure whatever that is applied to your needs and values.

Learn more about the 13 Best Banks for Small Business in 2020 and what makes each of them unique.

2. Gather the proper documents

The next step to opening your business bank account is preparing the documents you need to get everything set up.

  • Social Security Number or EIN (Employer Identification Number)
  • A copy of your LLC’s articles of organization, certificate of formation or an equivalent document
  • LLC operating agreement or an equivelent document which states the individuals authorized to sign on behalf of your LLC

3. Open your account & verify all information is correct

For most banks and industries, you have the option to open your account online or in person.

Once your account is set up, verify that deposits are going through properly and funds going in and out are being tracked and accounted for.

Get Small Business Insurance

There are three main types of business insurance that you may want to consider getting to manage risks for your Wyoming LLC:

  1. General Liability Insurance (required in Wyoming): this insurance protects your business from lawsuits.
  2. Professional Liability Insurance: covers claims of malpractice and other business errors (typically used for providers such as consultants or accountants.
  3. Workers Compensation Insurance (required in Wyoming if you have 1+ employees): provides coverage for employee's job-related illnesses, injuries, or deaths.

How Much Does Business Insurance Cost?

The cost of small business insurance depends on the type of insurance your business needs, but typically ranges between $700 and $3,800 a year.

You can get a free quote for your business insurance here.

Holding Your LLC Compliant

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In order to legally operate your Wyoming LLC, you will need to:

  • Secure the proper business licenses and permits
  • Register for taxes in Wyoming
  • Understand federal taxes and reporting to the IRS
  • File Your Wyoming annual report

We dive into each of these requirements below.

Secure the proper business licenses and permits

Depending on your industry, there are certain licenses and permits you may need in order to comply with state and federal regulations.

To understand the type of licenses and permits you need for your small business, please refer to the below resources:

Register For Taxes In Wyoming

Depending on the scope of your business, you may be required to register for the following taxes:

1. Wyoming Sales Tax

Register for Wyoming Sales Tax and Seller's Permit

Register Here

2. Wyoming Employer Tax

Register for Wyoming Employer Tax and Unemployment Insurance Tax

Register Here

Wyoming Sales Tax

If you are selling a physical product (digital goods/services or traditional goods/services) you will need to register for a Wyoming seller's permit.

What is a seller permit?

A seller's permit is a certificate that allows a business to collect sales tax on taxable sales.

The application for a seller's permit is $60 and will never expire. You will need the following information to register:

  • Date of first sale in Wyoming
  • Personal identification info (SSN, address)
  • Business identification info (EIN, address)
  • Specifics about the items you plan to sell

Wyoming Employer Tax

If you have one or more employees in Wyoming, you are required to register for unemployment insurance tax through the WY Department of Workforce Services.

Why do I need to register for unemployment insurance tax?

In order to provide unemployment insurance to those that qualify for benefits, the state is responsible for collecting unemployment tax from employers.

Federal LLC Taxes: Reporting Income to the IRS

There are two different forms for reporting your income to the IRS each year.

All businesses are different when it comes to tax structures, so we recommend that you speak with a tax expert to ensure you are complying with all neccessary rules and regulations for your business.

Learn more about what's involved when filing your state and federal taxes here

File Your Wyoming Annual Report

You are required by law in Wyoming to file your LLC annual report with the Secretary of State and pay an annual license tax:

File Your Wyoming Annual Report

Each year, you are required to file your annual report and pay the annual license tax.

FILE AND PAY ONLINE

What is the annual license tax?

$50 or 0.0002% of the value of all LLC assets (whichever amount is higher).

Any fees over $500 must be filed by mail at the end of the online process.

When is the annual report and license tax due?

  • The tax is due the first of the month in which the LLC was formed.
  • Example: if you registered your LLC September 14th, 2019, the tax would be due the following year on September 1st, 2020 and every year thereafter).
  • You do not need to pay this tax the year the LLC is formed

Here is a video explaining how to file your annual report in Wyoming:

What happens if I'm late on filing my annual report?

You will not receive any late fees in Wyoming, however, the state will dissolve your LLC within 60 days if no report is filed.

Conclusion

Forming your LLC in Wyoming doesn't have to be difficult as long as you follow the steps diligently in this guide.

To make the process even more seamless, here is a checklist for starting a business in Wyoming!

We hope you found this guide helpful!

Download the Start A Business In Wyoming Checklist!
wyoming_checklist.pdf
Download

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Starter Story,   Founder of Starter Story

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