Are you planning to start a business in Wyoming? Our guide on starting a business in Wyoming will tell you everything you need to know about the steps you must follow.
Starting a business can be an exciting time, especially if you’ve waited for a long time to venture out into new territory and put your idea into practice. Yet, it can also be a time with a lot of scary things, including not knowing where to start, fearing that your idea may fail, and taking care of all the legal procedures necessary to staring a new company. Yet, all of these are just normal fears that all first-time entrepreneurs have.
Now, while we can’t help you find out whether or not your business idea will sell like hotcakes, we can help you get educated on what steps to follow to start your business in Wyoming to eliminate the stress linked to legal steps.
Want to find out the key steps you must take to start your own business in Wyoming? Keep reading below!
Table of Contents
Test and Plan your Business Idea
No matter where in the world you start your new business before you start putting money into your idea, it’s best to test it and plan it.
First, to test your business idea, you can conduct market research to find out more about your industry competitors, target audience, and even get some numbers on how many potential customers are interested in purchasing your product or service.
Next, based on what you find out from the market research results, you need to create a business plan. Like Benjamin Franklin said once, “By failing to prepare, you are preparing to fail.”
So, develop a well-detailed business plan that includes all the steps you need to take to make sure you find success with your business, from an overview of your products/ services to customers, suppliers, company goals, and even marketing strategy.
Decide on a Legal Structure
Once you have the confirmation that your business idea is viable and have a business plan well put in place, it is time actually to start your company. The first step to take in that direction is to decide on a legal structure for your business.
The most common legal structures for small businesses are the limited liability company (LLC) and corporation. If your purpose is charitable, educational, or otherwise not-for-profit, you may need to form a nonprofit corporation.
Now, let’s dig deeper into the details of each structure, including the paperwork required, costs of formation, and time.
Wyoming Limited Liability Company
To create an LLC in Wyoming, you will need to prepare the following paperwork:
- LLC Articles of Organization
- Form RA Consent: Consent to Appointment by Registered Agent
- Operating Agreement
- IRS Form SS-4: Obtain an EIN (Employer Identification Number)
- Form 2553: S-Corp Election, if desired
In terms of formation costs, you should expect to pay $100. To create an LLC can take between three to five business days.
Wyoming Corporation
To create a corporation in Wyoming, you will need to prepare the following paperwork:
- Profit Corporation Articles of Incorporation
- Form RA Consent: Consent to Appointment by Registered Agent
- Bylaws
- IRS Form SS-4: Obtain an EIN (Employer Identification Number)
- Form 2553: S-Corp Election, if desired
The incorporation cost to create a corporation in Wyoming is $100, and you should expect it to take between three to five business days.
Wyoming Nonprofit
To create a Nonprofit in Wyoming, you will need to prepare the following paperwork:
- Nonprofit Corporation Articles of Incorporation
- Form RA Consent: Consent to Appointment by Registered Agent
- Bylaws
- IRS Form SS-4: Obtain an EIN (Employer Identification Number)
- IRS Form 1023: 501(c) Tax Exempt Application
- Wyoming SSUTA Certificate of Exemption Application
The incorporation cost to create a Nonprofit in Wyoming is $25, but applying for 501(c) status has either a $275 or a $600 IRS fee.
While the incorporation time can take anywhere between three to five business days, the 501(c) can take between two weeks to six months.
Regardless of the business structure you form, you will be required to appoint a Wyoming registered agent. The registered agent must be physically located in Wyoming and available during all regular business hours. The job of the registered agent is simple: receive service of process and other legal documents on behalf of the business and forward them to the appropriate parties.
Now that you know what each legal structure involves, you can make an informed decision on the legal structure that you want your business to have.
Choose a Name for Your Business
Next, you need to choose a name for your business. Keep in mind that besides choosing a business name that will work great for marketing and business purposes, the name must also be available to use in Wyoming.
You can check for available names to use for your business or nonprofit by doing an entity search on the website of the Wyoming Secretary of State (SOS). If you find a name that you want, you are allowed to reserve it for 120 days by filing an application for reservation of name with the Wyoming SOS. Name reservation, however, isn’t required in Wyoming. It is often easier to secure the name by filing the articles of incorporation or articles of organization to form the entity.
Obtain the Right Licenses and Permits
The next step for your business to function legally, you need to obtain all the necessary licenses and permits.
For example, if the nature of your business implies selling goods in Wyoming, you may need to register with the Department of Revenue (DOR) to collect sales tax. You can find the Sales/Use Tax License Application on the DOR website.
Besides that, you also need to obtain professional and occupational licenses. These licenses cover people who work in diverse fields. Check the online list of regulatory boards for some licensed professions and occupations on the website of the Wyoming Department of Administration and Information.
Figure out Taxes and Reporting
If you are opening a business in Wyoming, you should know that it is one of the four states that do not have corporate tax or personal income tax. You can learn more about state business taxes on the Wyoming DOR website. As for reporting, LLCs and corporations in Wyoming must file an annual report with the Wyoming SOS.
If you have a well-detailed business plan and a great business idea, follow the steps above to start your business in Wyoming. As long as you obtain all the necessary paperwork, find a suitable and available name, and go through all the steps above, starting a business here should be a pretty straightforward and quick process.
Harbor Compliance does not provide tax, financial, or legal advice. Use of our services does not create an attorney-client relationship. Harbor Compliance is not acting as your attorney and does not review information you provide to us for legal accuracy or sufficiency.
