Forming a company in Wyoming already comes with risks. That is why it is best to choose a company structure that will provide protection.
Forming An LLC In Wyoming
Because of this, many startups choose to form a limited liability company (LLC). It is usually known as a hybrid business entity since it combines the features of partnerships and corporations. As the name implies, this structure limits the personal liability of the owners. So, any possible claims against the business will only affect the assets of the company. Additionally, it is also an inexpensive way of structuring a small business.
Now that you are aware of the advantages of LLCs, you may be thinking where you should start your business. One of the friendliest places for businesses in the U.S. is Wyoming. It has a good tax climate and is among those with the highest rate of new entrepreneurs in the U.S. The state also has a good record in terms of business survival.
But before you organize your business, you have to understand the process on forming an LLC in Wyoming. Each state has its own process. Wyoming requires companies to submit paperwork to register their business. Learn the steps carefully to avoid encountering problems in the future.
Six Easy Steps In Starting An LLC
Forming a Wyoming LLC is not that complicated. To get started, follow the simple step-by-step guide below.
- Choose the name of your LLC.
The name of your company is an integral part of your business. It is what the consumers see and hear. Aside from thinking of a name that is unique and distinguishable, you also have to make sure that it complies with the naming requirements of Wyoming.
- It has to have the words Limited Liability Company or the abbreviations LLC, L.L.C., Limited Liability Co., Ltd. Liability Company, Ltd. Liability Co., LC, L.C.
- Do not include words that may confuse the company with a government agency.
- Wyoming has a list of restricted words, such as bank, attorney, and university. If you want to use any of these in your company name, you will have to file additional paperwork. You will also have to have a licensed individual in the LLC.
- If the company name starts with an “A” and is followed by a space, you cannot file the documents online.
- Make sure the name is distinguishable and is not already being used by another company. To check, perform a Business Filing Name search on the website of the Wyoming Secretary of State.
- If the name is not available for you to use, you can have a trade name, fictitious business name, or doing business name. You can do this by filing an Application for Registration of Trade Name with the Secretary of State.
- Appoint a registered agent in Wyoming.
The state requires all LLCs to have an agent. You can choose an individual or a company to nominate. The registered agent is the one responsible for receiving legal documents on behalf of the company. They will serve as the state’s point of contact with the LLC. Before appointing an agent, you have to make sure that they have a physical address in Wyoming. If you choose a company, it should be authorized to do business in the state. Additionally, the registered agent has to have normal business hours and is available from 9 am to 5 pm on weekdays.
- Submit the paperwork.
To register, you will have to file Articles of Organization with the Secretary of State by mail or online. It comes with a $100 filing fee for mailed documents and $102 for online filings. This document needs the following information:
- Name of the LLC
- Name and address of your registered agent
- The LLC’s mailing address
- Principal office address
- The organizer’s signature and contact information
- The registered agent’s written consent to the appointment
- Prepare the LLC’s operating agreement.
Wyoming does not require LLCs to create operating agreements. However, having one will help establish how you will run the company. It will clarify the responsibilities and rights of each member and manager. It will also determine how to manage the LLC, whether it will be member-managed or manager-managed. The operating agreement may help avoid conflict in the future.
- Comply with tax requirements.
Once you start your business, it will be subject to taxes. Thus, you will have to obtain a Federal Tax ID Number or Employer Identification Number (EIN). It is like the social security number of your LLC. You can get it from the IRS for free, either by mail or online. The EIN will be useful for the following:
- When opening a company bank account
- For federal and state taxes
- When hiring employees
- Consider additional protection.
To avoid the risk of mixing your personal and business assets, you may have to open a separate bank account under the name of your business. Doing this will also help in accounting for the company’s finances. Additionally, you can also get a credit card for the business. It will keep the expenses of the business centralized and can build the credit history of your LLC.
Getting insurance for the business may also be a good idea. Choose a policy that offers wide coverage.
Do You Need Help?
It takes courage and preparation to start a business. Going about the process requires patience and attention to detail. If you need help with forming an LLC in Wyoming, you can check out the services of an expert. DoMyLLC offers assistance for emerging entrepreneurs like you. Our team of experts offers live support. We are also ready to handle the paperwork for your company. DoMyLLC also offers personalized solutions. Thus, you can be sure that what we are giving you is fit for the needs of your company. Contact us now and find out how we can help make the LLC registration process hassle-free.
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