Wyoming is one of the most business-friendly states in the country. It’s no wonder that so many people are interested in starting an LLC there.
This article will provide a simple guide on how to set up an LLC in the Equality State. We will also discuss the benefits of forming a Wyoming LLC.
So, whether a business owner is just starting out or looking for more information on the state’s LLC laws, this article has them covered.
Here are the simple steps one must take to form a Wyoming LLC:
Step One: Choose a Name for the LLC
The first step in forming an LLC is to choose a name for the business. The name must be distinguishable from all other businesses registered with the State of Wyoming. Also, an individual may reserve their LLC name with the Wyoming Secretary of State. The reservation will be valid for 120 days.
Step Two: Appoint a Registered Agent
All LLCs in Wyoming must appoint a registered agent. A registered agent is a firm or individual approved to receive legal documents on behalf of an organization. This entity must have a physical address in Wyoming.
While business owners can act as their own registered agents, it is usually best to appoint a professional service.
This way, they can be sure that their LLC complies with state laws. The best Wyoming registered agents offer a wide range of services at reasonable prices. Also, clients can always cancel their service if they are no longer satisfied.
Step Three: File Articles of Organization
Next, the business owner must file the Articles of Organization with the Wyoming Secretary of State. The Articles of Organization include information about the LLC, such as the business name, registered agent, and purpose. Furthermore, the Articles of Organization must be signed by a person authorized to form the LLC.
Step Four: Create an Operating Agreement
Although not required by law, it is highly recommended that LLCs in Wyoming create an operating agreement. An operating agreement is a document that outlines the ownership and management structure of the firm. It is crucial to have an operating agreement because it can help prevent disagreements between the LLC members.
Step Five: Obtain an Employer Identification Number
LLCs with more than one member must obtain an EIN. This is a nine-digit number that is issued by the IRS. Companies need an EIN to open a business bank account and file taxes.
Step Six: Comply with Other Business Licensing and Permitting Requirements
Depending on the firm, one may need other licenses and permits. For instance, enterprises selling alcoholic beverages must acquire a license from the Wyoming Liquor Division.
Step Seven: File Yearly Report
Once the LLC is up and running, the business must file an Annual Report with the Wyoming Secretary of State. The report is due on the anniversary of the LLC’s formation. Entities with less than $300,000 in Wyoming assets must pay $60 to file the annual report, while others with assets greater than $300,000 will multiply the value by 0.0002 and pay that amount.
Wyoming LLC Benefits
The primary benefit of a limited liability company is that it provides limited liability protection to its owners. As a result, the LLC members are not personally liable for the debts and liabilities of the business.
Another advantage of an LLC is that it has a flexible management structure. LLCs can be managed by one person or by multiple people.
Lastly, LLCs are not subject to the same tax rules as corporations. For example, LLCs are not required to pay corporate income taxes.
Overall, Wyoming LLCs offer several advantages and are relatively easy to form. An LLC may be the way to go if one is considering starting a Wyoming business.