Starting a Business in Wyoming
Posted on: July 17, 2015
Every day new businesses open in Wyoming. That’s because, all first-time entrepreneur nerves aside, starting a business in Wyoming is pretty straightforward.
Our guide below is designed to help you start a Wyoming business as quickly and easily as possible.
Steps to Start a Wyoming Business
Choose an Entity
The first decision to make is what kind of business entity want to form. LLCs and Corporations are the most common. Generally, corporations are more formal and require more maintenance than LLCs. However, if you’ll be seeking outside investors, many venture capitalists prefer to work with stock rather than percentages of ownership, as corporate law has a greater degree of history. Both entities provide the same limited liability coverage of assets and are seen, by the courts, as entities separate from the business owners. It is worth mentioning that Wyoming is best known for its LLCs, though, as it’s where the LLC originated and our state provides the greatest degree of privacy in the US for LLC members.
File Formation Documents
Once you decide on your business entity, you’ll need to file formation documents with the Wyoming Secretary of State. These are the official documents which create the business entity and register it legally with the state.
When you fill out your formation documents, you will be required to name your business and appoint a Wyoming registered agent. Business names must be in accordance with state law. You also have to choose a name not currently registered.
A Wyoming registered agent is designated to accept service of process on behalf of your company. Service of process is a notification that your company is involved in a lawsuit.
Create Bylaws or Operating Agreement
After you’ve formed your Wyoming LLC or Wyoming Corporation, you’ll need basic rules as to how the entity will function. For corporations, these rules are known as corporate bylaws; for LLCs, these rules are written into an operating agreement. Both serve the same function as governing documents vital to explaining how the LLC or corporation operates, how it will be managed, how profits and losses will be shared, and so on. These documents do not need to be filed with any government agency.
Apply for an Employer Identification Number
An EIN is issued by the Internal Revenue Service. The number acts as an identifier for the IRS to track your business and the federal taxes owed. You can get an EIN for free from the IRS website.
Not all businesses need an EIN. If you form a corporation, you must have one. But if you have formed an LLC, you may not need one. You can learn more at the IRS website.
Open a Business Bank Account
A business bank account can only be opened in person at a bank branch. Each bank has its own particular requirements for what you must bring with you to open an account. Your best bet is to call in advance and ask what is needed.
Most banks will require at least the following: copies of your corporate bylaws or operating agreement, copies of your formation documents, proof of authorization, and your EIN.
Register with the Department of Revenue
This may or may not be necessary, depending on whether you have employees or not and whether or not you will be withholding sales tax on goods sold in-state. You can learn more at the Department of Revenue website.
Obtain Business Licenses
If you are part of a profession, you may need a business license to operate within the state. Depending on the profession that you are a part of, you will need to contact the appropriate agency that issues the license you need.If you are not a part of a licensed profession (doctors, lawyers, etc.), you can skip this step.
File Your Annual Report
Once your business is up and running, don’t forget to file your Annual Report each year. The Annual Report can be filed online at the Wyoming Secretary of State’s website. The fee to file online is $52. These reports are due on the first day of the business’ anniversary month.
This covers the most basic steps for starting a Wyoming business. If you have any specific questions, ask them below.
Categories: How to Start a Business