Wyoming has quietly developed the nation's best jurisdiction for small businesses by being an advocate for small government and strict privacy. This framework provides benefits to small businesses which are unavailable in other states.
Why publish private information, pay more and make assets easier to seize when you don’t have to? The answer is you don’t have to and you shouldn’t. You should do business in Wyoming.
Some believe a sole-proprietorship is simpler or better than forming a company. In some states this may be true, but in Wyoming it is not. Fortunately, anyone can start a Wyoming company. You don’t have to be a US resident or visit Wyoming.
The short answer is nearly everyone. The long answer is a little more complex. Those with location independent companies, such as e-commerce stores or consultants, have the flexibility to move their domicile to where their business is treated best. Plus, our virtual offices let you work from anywhere.
Those who have employees and operations in other states have to be more creative. Generally, the Wyoming company will hold valuable assets and then lease and loan them back to the companies which need them. Learn more about Wyoming holding companies here.
You cannot benefit from Wyoming’s laws if you operate as a sole-proprietorship or DBA. Like the lottery, you must play to win. Whether you are a Sole-Prop or DBA makes no difference. DBA stands for "Doing Business As". That is, you are an individual, but you are allowed to use a separate name when doing business. Operating as a Sole-Prop has the following downsides:
Unlimited Liability: You are personally liable for any and all business debts, e.g. leases and lawsuits. There is no limit to your risk if there's an error. Your car, home and everything else are at risk. You can purchase insurance, but an LLC is cheaper and has other benefits.
Sole-Props pay more in taxes: All income is subject to federal employment taxes of 15.3%. With a company, after a reasonable salary, the remaining profit is not subject to federal employment taxes.
Inability to expand: You cannot sell a percentage nor offer it to employees. If you borrow money, the bank will require a personal guarantee. You will be required to make payments whether your business is making money or not.
Not Professional: Companies, vendors, clients and others consider an LLC or Corporation more professional to do business with.
Sole-Props make estate planning more difficult: and die with their owner. The sole proprietor cannot deduct things like defined-benefit pension plans, insurance expenses and health-care benefits. It is also difficult to attract good management to a sole proprietorship.
Filing for a DBA has the same filing fee as as forming a company. Why pay the same only to receive so much less?
Learn more about avoiding these downsides by forming a Wyoming LLC and learn more about Wyoming LLC benefits including their privacy. When you use us, everything is handled online, costs $175 and we have a same day guarantee for orders before 5 P.M. our time. When you are ready to start your company, simply click the order form button on the upper right.
What are the major differences? Corporations have existed for hundreds of years, and tend to be more similar than LLCs across the USA. Limited Liability Companies are newer. They came into being in the 1970’s.
Asset Protection: LLCs have charging order protection. This prevents creditors from seizing your membership interest or force a distribution. This benefit also applies to Single-Member LLCs. Corporations do not enjoy this benefit.
Taxes: Corporations may only be taxed as corporations or s-corps. LLCs may be taxed as a corporation, s-corp, a disregarded entity or partnership.
Privacy: Wyoming LLCs are anonymous by default. Corporations must list an officer publicly beginning the second year. You may use our nominee service, but this comes with a fee LLCs do not have.
Corporations have a defined management structure and require a board of directors. LLCs have more flexibility and do not have a board. Learn how to avoid these drawbacks using a close company below.
Small businesses should look at forming a Close LLC or Close Corporation. They were designed for families, friends and solo entrepreneurs. They reduce corporate formalities and provide stronger asset protection.
Wyoming was the first state to allow LLCs in the USA and continues leading to this day. Some of the benefits you can expect form Wyoming include, but are not limited to:
Privacy: Wyoming LLC ownership information does not go into a public database. This protects your identity and keeps you from being an easy target.
Asset Protection: Wyoming has strong asset protection laws - including charging order protection for single member LLCs.
State Taxes: Wyoming does not tax personal or corporate income.
Administration: Wyoming does not over regulate its LLCs. This benefits smaller businesses who can least afford the costs compliance.
Fees: We charge $175 to start a company and future annual reports are $50. Compare this the hundreds in additional fees Nevada charges.
Unless there's a specific need for separate share classes, a limited liability company is often preferable to a corporation. The additional asset protection and tax flexibility are the most important benefits. You can learn more about LLCs on our home page, we also cover their benefit extensively here, and provide a discussion about single member LLCs here.
While we generally recommend LLCs, there are situations where traditional c-corporations are superior. Wyoming is also superior to Nevada and Delaware in large part due to their significantly higher fees.
Privacy: Corporations are required to list an officer on the public record. Luckily, though, WY allows for nominee officers. This allows you to maintain your privacy.
Asset Protection: Corporations are separate entities from their shareholders. This means owners are not liable for corporate debts.
State Taxes: Wyoming has no taxes on corporate income. Form a holding company with us and divert your profits to where they will not be taxed.
Administration: Wyoming allows close corporations. This means no board of directors and fewer reporting requirements.
Moving from Nevada, or any other state, to Wyoming may sound tedious... but it's not when you let us do the work. We only charge $150 to do everything. There are many reasons to move. Wyoming only charges $50 per year. Nevada has extra income tax, is less private, and charges LLCs $325 per year and corporations $500+ per year. Learn more about moving to Wyoming.
A nexus is similar to a headquarters. It is the point through which the company operates. Such aspects include office space, bank accounts, mailing address, phone number, etc. These aspects partly determine what taxes are owed and which laws govern the company. This is one reason some clients go so far as to rent office space in Wyoming. Legitimizing A Wyoming Nexus
After forming your Wyoming company, you will want to take some steps to establish a presence in Wyoming. For example, we provide a principal office address which is different than your agent's address. This is included with our incorporation package. Those desiring a little more can opt for a unique address to help your company stand out.
There are nearly as many states as there are definitions of nexus. A general guideline is:
a) maintaining a place of business;
b) the selling, procuring or buying of property or services;
c) enforcing and exercising contract rights;
d) executing contracts;
This is a fairly broad interpretation. The take away is a nexus should have a legitimate business consideration other than avoiding taxes. If the reason is legitimate, then you are likely in a situation where you could benefit from incorporating in Wyoming.
Our goal is to provide quality service at an affordable price. With a same day guarantee you will be quickly on your way! Then our 24/7 portal ensures you always have access to your important documents. And our $49 registered agent fee won't break the bank in future years.
Wyoming makes starting a new business simple. You may even do it yourself and use our agent service. However, doing it yourself will put your name in the public record as the incorporator. Only form the company yourself if you don't care about privacy.
Step 1: Think of a name for your corporate entity. Enter the Wyoming business name you would like to use and run a search. You can then see if anyone else has already registered your desired name.
Step 2: First sign up for our Wyoming Registered Agent service, then visit the Business E-Filing page on the Secretary’s website . From there choose your entity classification and any special designations.
Step 3: Keep in mind that these preexisting forms only provide the generic minimum necessary to create a Wyoming company. Our incorporation packages include important corporate documents and more. These help you get the most from your company. Obtaining the forms yourself does not give you all of your legal options like our incorporation service does.
Step 4: Prepare the Wyoming corporation filing fees. As of this year, the fee is $102 for an LLC or Corporation. The $2 comes from a convenience fee for paying online. You may mail in the articles to save the $2 if you wish.
We can submit all forms on your behalf, further protecting your identity and reducing your workload. Our goal is to make doing business in Wyoming as simple as possible.