You’ve done all the planning, all the prototyping, all the market research, and you’ve decided it’s time … you’re ready to start your LLC.
Setting up a limited liability corporation (LLC) in Wyoming is neither impossible nor expensive, but it does require you to know what you’re doing. That means taking certain steps.
Making this more difficult is the fact that LLCs vary at the state level, so the rules that apply in, say, Colorado do not apply in Utah. By the same token, if you’re forming an LLC in Wyoming, you need to know the Wyoming-specific rules and costs that go along with it.
Today’s post is here to help. We’ll answer the common question “How much does an LLC in Wyoming cost?” in detail. We will also discuss annual fees (like the filing fee or a registered agent service), formation steps, and some FAQs that might be keeping you up at night.
By the end of this read, you’ll know exactly what to do to get started. Let’s dive in.
Let’s take a quick look at the general steps of forming a limited liability corporation, along with the LLC Wyoming cost associated with each. Note that some cost money no matter what, some are free, and some are up to you.
First and foremost, your biz needs a name.
There are endless directions in which to take this, but you should keep a few basic principles in mind when naming your LLC:
Before you commit too hard, conduct a business entity search to make sure no one else is already using that name in Wyoming. The search is free.
If you know you’ve found “the one” but you aren’t yet ready to form your LLC, then it’s wise to reserve your name so no one else can take it. This costs $60 in Wyoming.
Sometimes a business will want/need a different name for their LLC and their public-facing business. This can happen when you want multiple businesses under one LLC, or if you want a very dry LLC name for legal reasons but want to make your public name more appealing.
In that case, you might want a trade name or a DBA (which stands for “doing business as”). Each trade name is $100 in Wyoming.
While they may sound very grandiose, the articles of organization are simply a set of documents stating that your business exists in the state of Wyoming. They include basic information, such as the LLC’s name, address, purpose, structure, and principal members.
The cost for filing articles is $100 in Wyoming. There is no extra fee for filing online.
Beneficial ownership information (BOI) report
Although it is free to file, the beneficial ownership information (BOI) report is not optional and must be filed with FinCEN in order to operate legally in the state of Wyoming. If you’re not sure how to proceed, you may ask a registered agent.
Registered agent services are completely optional, but they’re often a good idea.
A registered agent is a person or entity legally appointed to accept mail on your behalf. They can also prepare documentation, estimate costs and fees for paperwork, and help you with budgeting. Typically, the annual cost of a registered agent in Wyoming ranges from $100 to $400.
Why do so many businesses appoint registered agents? Because, while they do come with an extra cost, the potential financial repercussions of failing to stay in compliance or file paperwork on time can be much, much more.
Not all Wyoming businesses will need an operating agreement. However, even those that don’t have to create one often find it’s a good idea.
An operating agreement is a document that details how you will resolve disputes among members of the LLC, should they arise. It’s a good idea for any LLC that has a complicated structure or different ownership shares among its members. It may also be necessary depending on the types of financial transactions you plan on making.
An operating agreement is an internal document, meaning you don’t need to file it anywhere. Some LLC owners choose to create it themselves for that reason, which is free.
Others choose to use a lawyer, which could cost up to $1,000 just for this document, or a registered agent for a more affordable path to expertise.
Now that we’ve covered the basics, here are some other costs of doing business in the state of Wyoming.
Licenses and permits show that you are allowed to operate your business in Wyoming. They will vary depending on what you do, where you do it, whom you do it for, and what laws govern your activities.
Examples of common Wyoming business licenses include:
The cost of obtaining such licensing and permitting varies as well along with the exact licenses and permits you need. For instance, to operate a bed and breakfast in Cheyenne costs $65 a year, while to run a restaurant in Laramie requires a $200 food service license from the city.
Before you proceed with your LLC, make sure you understand all the requirements for licensing in your area, so you do not accidentally run afoul of the law.
An annual report is a document outlining the activities and financial standing of the previous year. The state of Wyoming requires that every business file one on the first of the month in which it was formed.
For instance, if you formed your business on April 21st, then you need to file your report by April 1st of the following year. However, you can also file in the 120-day window leading up to your anniversary month.
The fee for filing the report is either $60 or two-tenths of one mill on the dollar ($.0002), whichever is greater. For most companies, it will be the former. The report and fee are required annually to remain in good standing.
Wyoming offers business owners a very generous tax advantage. There is no corporate tax levied against your LLC and no personal income tax. There is also no annual franchise tax, a separate business tax levied against businesses in some states.
The only tax you must pay is a self-employment tax at a rate of 15.3%, which translates to the lowest overall tax burden for businesses in the nation.
Note that this doesn’t mean you’re cleared of federal income taxes, which you will still have to file with the IRS.
In some cases, you may need a certificate of good standing to perform certain business activities in Wyoming. This is sometimes true when getting a loan or expanding your business to other states.
A certificate of good standing is, luckily, both easy to obtain and free. Just head to the Wyoming Secretary of State’s website and download it instantly.
There’s a number of expenses you can write off when doing business in Wyoming.
What does this mean? A tax write off is any legitimate expense that you can subtract from the total amount of your taxable income. That way, the federal and state governments will charge you tax on a smaller overall amount.
This is known as lowering your tax burden. It applies to a number of business activities, including filing and DBA fees, operating agreement and registered agent costs, attorney fees, and the cost of completing your articles of organization.
Let’s take a closer look at some of the main tax write offs.
If you are the only member of your LLC, then you can write off the cost of preparing your own taxes. You can also write off the cost of getting tax help from someone else, if that’s your preference.
Worried you might cook the books rather than keep them? So are many business owners, which is why you are free to hire an accountant and write off the cost.
If you have chosen to take the registered agent path, then you’re smart. Not only are you likely to save time and money on potential mistakes, but you can write off the cost.
Business legal fees are usually deductible. The commonly stated rule is that they must be ordinary and necessary.
This typically includes costs such as creating an operating agreement, getting tax advice, or handling property. Fees related to advice specific to the type of profession in which you practice, or to lawsuits that may arise as a matter of course while practicing, are also deductible.
Just make sure you never conduct personal business – from custody to personal real estate, estate planning to personal injury, and so on – on the company dime.
Here’s a quick overview of the typical costs associated with forming and running an LLC in West Virginia:
Just the costs, you say? Here’s a table to keep on record.
LLC filing fee (articles of organization) | $100 |
Reserve business name (optional) | $60 |
Filing a DBA (optional) | $100 |
Registered agent (optional) | $100 to $400 |
Operating agreement (optional) | $0 to $1,000 |
Annual report | The greater of $60 or two-tenths of one mill on the dollar ($.0002) |
Self-employment tax | 15.3% |
Business license (cost varies widely by municipality; see examples) | B&B license in Cheyenne: $65 Food handling license in Laramie ($200) |
Certificate of good standing | Free |
Business amendment or dissolution | $60 |
While it’s not free to establish an LLC in Wyoming, it doesn’t have to be that expensive. As long as you know what you’re doing or obtain reasonably priced help in the form of a registered agent, you’ll be on your way to Profit City in no time.
Always ensure your name is unique, pronounceable, appropriate, and able to withstand the test of time. Perform a business entity search before getting your heart set on any certain name.
At a minimum, you will pay $100 to file your articles of incorporation and $60 per year when you file your annual report, plus the cost of licenses and permits in your city and industry.
LLC formation is almost instant if you file online but may take around 2 weeks if you file by mail.
If you plan to employ people in Wyoming, you will need an EIN. The only exception is if you are a single-member LLC and are taxed as a disregarded entity.
Submitting your annual report and paying the associated fee effectively renews your LLC for you.
To dissolve your LLC, submit the Limited Liability Company Articles of Dissolution to Wyoming’s Secretary of State along with a $60 fee.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Tailor Brands and any other brands, services or logos.
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