What do I need to start a business in Wyoming?
If you want to start a business in Wyoming, you should be aware that each state has slightly different procedures for doing so. Here’s a quick rundown of the important stages to starting your own business in WY.
1. Pick a business concept
Make sure to take some time to brainstorm and investigate company ideas. Consider your interests, talents, resources, availability, and the reasons why you want to start a company at this stage. You should also think about the chances of success in terms of your community’s interests and needs. More information on how to analyze business ideas may be found in this post.
Consider writing a business plan once you’ve chosen an idea to assess your possibilities of making a profit. You’ll have a better notion of the initial costs, your competition, and money-making tactics if you make a strategy. Before giving financial assistance, most investors and lenders will request to see your company plan.
2. Choose a legal framework
The following are the most frequent legal structures for a small business:
- Corporation
- Sole proprietorship
- Partnership
- Limited liability company (LLC)
Limited partnerships and S corporations are examples of special variations of some of these arrangements. Consider which business organization structure provides the liability protection you desire as well as the optimum tax, financing, and financial benefits for you and your company.
3. Pick a name
If you’re forming an LLC or a corporation, you’ll need to make sure your name is distinct from that of other businesses already registered with the Wyoming Secretary of State (SOS). You can check for available variants by using the SOS website’s company entity search. By completing a reservation application with the Wyoming SOS, you can reserve an available name for 120 days. (For LLCs and corporations, there are different forms.) For LLCs and corporations, there are specific name criteria (like including a word such as “LLC” for LLCs or “Company” for corporations).
Is your company a sole proprietorship or a partnership with a business name that differs from the legal name of the owner (in the case of a sole proprietorship) or the surnames of the individual partners (in the case of a partnership)? If that’s the case, you can file an Application for Trade Name Registration with the SOS.
If you intend to conduct business online, you should consider registering your company name as a domain name. For further information, see Choosing and Registering a Domain Name. Furthermore, to avoid trademark infringement difficulties, you should conduct a federal and trademark search to ensure that the name you wish to use is not identical to or too close to one that is currently in use.
4. Create a legal entity for your business
Sole proprietorship: In WY, you don’t need to file any organizational forms with the state to start a sole proprietorship.
Partnership: You don’t need to file any organizational documents with the state to form a general partnership. All partnerships should have a formal partnership agreement, even if it is not legally necessary. If there is ever a disagreement between the partners, the partnership agreement can be quite useful. You must file a Statement of Registration with the SOS to form a limited liability partnership (typically utilized by professionals).
LLCs:To form an LLC in Wyoming, you’ll need to file Articles of Organization with the Wyoming Secretary of State, as well as appoint a registered agent for service of process. Additionally, while it is not needed by law, you should draft an operating agreement to lay out the fundamentals of how your LLC will run. The operating agreement hasn’t been submitted to the state.
Corporations: You must submit Articles of Incorporation with the Wyoming Secretary of State, as well as appoint a registered agent in WY to receive service of process. You should also draft bylaws to outline your corporation’s internal running regulations, even if it is not legally needed. The state does not require to fill bylaws. Remember, that corporations must also submit IRS Form 2553, Small Business Corporation Election, with the Internal Revenue Service.
5. Fill out an application for licenses and permits
Tax registration form: You must register with the Wyoming Department of Revenue (DOR) to collect sales tax if you plan to sell items in Wyoming. The DOR website has a Sales/Use Tax License Application that you can download.
EIN: You must acquire a federal Employer Identification Number (EIN) from the IRS if your business employs workers or is taxed separately from you. Even if you aren’t legally compelled to have an EIN, there are many business reasons to do so. Banks frequently require an EIN to create a business account, and other organizations with whom you do business may also require an EIN to make payments. You can obtain An EIN by filling out an online application. There is no charge for filing.
Regulatory licenses and permits: These include topics such as health and safety, the environment, building and construction; and specific industries or services.
Wyoming Business Permitting and Licensing, published by the Wyoming Business Council (WBC), is an outstanding guide that provides an easy-to-read summary of the state’s different regulatory permits and licenses, as well as the agencies that issue them. Check the websites of any towns or counties where you plan to do company for information on local licenses and permissions.
Professional and occupational licenses: These cover folks who work in a variety of disciplines. A list of regulatory boards for certain (but not all) licensed professions and vocations is available online from the Wyoming Department of Administration and Information (DAI). Additionally, if you know the name of a regulatory board, the Governor’s Boards and Commissions website offers a part where you can search for it. Finally, Wyoming Business Permitting and Licensing, a WBC publication, covers the numerous state agencies that manage professional licenses.
6. Pick a business location and check zoning
You’ll need to choose a place for your company and look into local zoning laws. Take the time to analyze the costs of running your business in the desired location, including rent and utilities, before committing to a site. You can use your business plan to see if you can afford your ideal location in the early stages of your firm.
It’s critical to double-check that the location is zoned for your type of business. Review your local ordinances and contact your town’s zoning or planning department to find zoning regulations for your town or city.
Running your company out of your house is a viable option to creating a new site. Check your local zoning restrictions again if you decide to start a home-based business. In addition, check your lease (if you rent your house) and homeowners association regulations (if applicable) to see whether any of your home enterprises are prohibited.
7. Taxes and reporting
Wyoming is one of just four states without a corporation or individual income tax. Wyoming LLCs and companies have to file annual reports with the State Office of the Secretary of State. There are also federal income and employer taxes in addition to levies. Check out IRS Publication 334, Small Business Tax Guide, and Publication 583, Taxpayers Starting a Business.
8. Purchase insurance
Business insurance can safeguard your firm and your assets from the consequences of unforeseeable events like personal injury claims or natural disasters. An insurance agent may assist you in determining the many coverage options available. Take a note, that it may include general liability insurance to protect your company from claims involving personal injury or property damage.
9. Open a bank account for your business
Whatever type of business you start, you should register a separate business account to track your income and expenses easier. You’ll also need a separate bank account for various business forms, such as LLCs and corporations, to preserve liability protection.
