LLC

How to Start an L.L.C. in Wyoming?

How to Start an L.L.C. in Wyoming

Wyoming is a suitable option to start an L.L.C. as it is affordable and easy to form. Compared to the other states, Wyoming has some unique L.L.C. requirements. Parties interested in creating an L.L.C. must register with the Secretary of State by filing the necessary forms, paying fees, and meeting all naming and formation requirements.

Specific Requirements of Wyoming L.L.C.

The specific requirements of Wyoming L.L.C. are:

Registration

The articles of association must be filed by the registered persons with the Secretary of State via mail. An email address must be indicated as the electronic certificates are sent on it by the Secretary of State. The articles of organization must include information such as:

  1. Name of the L.L.C., principal office address and mailing address.
  2. Registered agent’s name and address.
  3. Name of the organizer, daytime phone number, email and dated signature
  4. Original signed consent to Appointment by the Registered Agent.

The above documents must be filed along with the payment for the filing fee.

Forms and fees

The necessary filing fee must accompany the articles of organization.

Timeline

The application processing takes a standard time of three to five business days. No expedited services are available.

Naming requirements

The easiest way to make an L.L.C. is to give it a distinguishable name and include specific required words. However, you also have the option to check for the availability of the preferred name before filing the L.L.C. formation documents with the Secretary of State.

Formation Requirements

The person forming the L.L.C. must first get the articles of organization filed with the Secretary of State. An L.L.C. with more than one member is advised to have an L.L.C. Operating agreement among its members. If your L.L.C. offers professional services, then you must obtain certain licenses and permits from the state’s professional licensing board.

Steps to Start an L.L.C. in Wyoming

Choose a name for your L.L.C.

Before you register your L.L.C., you need to choose a name to include in the articles of organization. The name of the L.L.C. must comply with the naming requirements, which are as follows:-

  1. The name of the L.L.C. must include words such as Limited Liability Company, L.L.C. or L.L.C.
  2. The name of the L.L.C. must be unique and not the same as an existing business in the state. A search can be conducted on the Secretary of State’s website to determine whether a business name is in use.
  3. The name of the L.L.C. cannot use words used by government agencies such as State Department, C.I.A., F.B.I., Treasury, etc.
  4. A few restricted words, such as bank, attorney, lawyer, credit union, etc., may require few more documentation and license paperwork.
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Choose a registered agent

Appointment of a registered agent is mandatory for an L.L.C. A registered agent can be either a person or an entity authorized to accept service of processes and other official legal documents and notices on behalf of your L.L.C. The registered agent offers a registered agent service and can be a person or an entity. A registered agent has to qualify for the following criteria:

  1. It must provide registered agent services.
  2. It must have an address in Wyoming.
  3. It must be on-site and available to accept documents during regular business hours.

Get an Employer Identification Number (E.I.N.)

E.I.N. is a nine-digit number assigned by the Internal Revenue Service to identify L.L.C.s for tax purposes. An E.I.N. can be obtained either by mail or online through the I.R.S. E.I.N. serves the following purpose:

  1. Open a business bank account
  2. To hire employees
  3. To file and manage taxes at the state as well as the federal level.

Create an Operating Agreement

It is a document outlining the way an L.L.C. conducts business. It is not mandatory to have an operating agreement. Still, it is highly advisable as it is helpful for various reasons, such as settling disputes arising over financial agreements and other potential litigation. Without an operating agreement, the courts make determinations based on state law, which might not necessarily be in the L.L.C.’s and its members’ best interest. The operating agreement includes the following:-

  1. Name and principal address of the L.L.C.
  2. Duration of the L.L.C.
  3. Information about the Certificate of Organization
  4. Name and address of the registered agent
  5. Purpose of the Business
  6. Process in which profits and losses will be divided
  7. Members and their contributions
  8. Procedure for incoming and outgoing members
  9. Indemnification and liability clauses
  10. Management of the L.L.C.
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Pay License Tax

The license tax is required to be paid by L.L.C.s in Wyoming. It is paid based on all the assets of the L.L.C. and the employees in the state. L.L.C.s with less than or up to $250,000 assets must pay a minimum license tax of $50.

Familiarize yourself with the L.L.C.’s continuing legal obligations, specifically annual reports

The annual Report is due every year on the first day of the anniversary month the L.L.C. was formed. Annual reports must be filed with the Secretary of State online or by mail. Online filing requires additional fees and a convenience-based license tax. Late filing of annual reports and payments may result in L.L.C. dissolution or revocation. If the annual report fee exceeds $500, the L.L.C. cannot file the Report online. The L.L.C. should meet the state legal requirements if it offers professional services. Legal obligations may differ in each state. These could be but are not limited to state taxes, annual or biennial reports, etc.

Filing an L.L.C. and taxes

The forms and fees required to start a Wyoming L.L.C. are as follows:-

  1. Complete and submit articles of organization with the Secretary of State along with the payment of the necessary filing fee.
  2. Prepare an operating agreement for the L.L.C. Although it is not mandatory to be submitted to the Secretary of State, it is advisable to prepare one for L.L.C.s with more than one member. The operating agreement is kept on file with the registered agent.
  3. L.L.C.s in Wyoming are subject to federal income tax classifications. Your federal tax responsibilities depend on the type of taxation you choose for your L.L.C. The license tax must also be paid by L.L.C.s depending on the L.L.C.’s assets and the state’s employees. L.L.C.s with assets up to $250,000 must pay a minimum license tax of $50.
  4. Before opening an L.L.C., you must acquaint yourself with the state laws regarding taxation. Depending on the type of services offered by L.L.C., it may also be subject to other taxes.
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Wrap Up

In this blog, we have seen the requirements to start an L.L.C. in Wyoming. From choosing a name for the L.L.C. to obtaining an employer identification number, all are simple steps that must be followed to ensure that your L.L.C. in Wyoming is legally compliant.

FAQs

  1. How much does it cost to open an L.L.C. in Wyoming?

    It costs $100 to open an L.L.C. in Wyoming.

  2. Is a Wyoming L.L.C. worth it?

    Yes, it is worth having a Wyoming L.L.C. as it has no state income tax; filing and reporting costs are low, and members' privacy is assured. Further, it also has charging order protection laws.

  3. What are the benefits of starting an L.L.C. in Wyoming?

    L.L.C.s in Wyoming offer anonymity, asset protection and low annual fees.

  4. What is the tax rate for an L.L.C. in Wyoming?

    The tax rate for an L.L.C. in Wyoming is 30% of all income from U.S. sources to the Internal Revenue Service (IRS).

  5. Do you need an address in Wyoming to open an L.L.C.?

    Yes, Wyoming does require a principal place of business and mailing address.

  6. Can I start an L.L.C. in Wyoming if I don't live there?

    Yes, you can start an L.L.C. in Wyoming even if you don't live in Wyoming.

  7. Is there an annual fee for an L.L.C. in Wyoming?

    Yes, an annual fee of $60 is paid by the L.L.C. to the Secretary of State in Wyoming.

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