If you are wondering whether going into business is the right thing to do, then you will have to weigh the pros and cons first. Make sure that you are ready to face all of the disadvantages so that you can enjoy the benefits of a Wyoming LLC.
Pros Of Starting A Wyoming LLC
- You will be your own boss. Gone are the days when you have to follow instructions and report to a superior. As a business owner, you will be the one making the big decisions. That means you get control over your company’s destiny. You have a huge role in the success or failure of your business. Working hard to pursue your goals will allow you to have a successful venture.
- It feels good to see someone enjoying your product or service. The main purpose of a business is to address the needs of its target clients. Seeing someone using or paying for a product that you have created gives you a blissful feeling, and knowing that your service provides convenience can give you validation.
- You get to choose whom to work with. One of the challenges of being an employee is that someone else gets to decide whom to fire and hire. You may end up losing your job all of a sudden. Additionally, you are a part of a team of different individuals. You may be surrounded by people you do not like. If you own a business, you do not have to worry about this. Choosing the members of your team is in your hands. You can find people who will perfectly fit the company and help you attain your goals.
- You can help the local economy and community. Local businesses are important to communities. Not only will you be offering products and services that your community needs, but you will also create employment opportunities and contribute to the local economy.
- You gain financial rewards. When you start a business, you are opening the possibility of earning more money. You no longer have the income restraint that comes with being an employee. If your company becomes a success and lasts for a long time, you can build your wealth with ease.
- You have the opportunity to build equity. Owning a business gives you an opportunity to build equity, which is something you can keep, sell, or pass on to the next generation. Many entrepreneurs open multiple businesses. Then, they sell those companies to someone else after establishing them and running them for a while. You can use the income that you might earn from selling a company in financing a new business venture. If you do not want to sell it, then you can grow it so that you have something to pass down to your children. It will also ensure a comfortable lifestyle for you and your family in the future.
Cons Of Forming A Wyoming LLC
- You will have to work harder and longer hours. When you start a business, you have to be prepared to work more than you used to. As you try to establish your company, you may need to work more than 8 hours a day. It can be physically and emotionally draining. That is why it is important for you to have the right motivation that will keep you moving forward even when the going gets tough.
- You may not have someone to guide you. As an employee, you have a superior who is ultimately responsible for the performance and output of the whole team. But when you become a business owner, there will be no one like that you can turn to. You will be the one responsible for making decisions. You have to figure out the right thing to do and prevent committing any mistakes that will have serious repercussions. You may start with trial and error to find out what strategy works best for your company.
- You may not have income for a while. Before starting a business, you need to be financially ready. You should have enough money to cover bills while you are trying to establish the business. That means you may not get a salary for a short while. You may use up all of your savings to cover your personal expenses.
- There may be times when you feel unsure of yourself. Many starting entrepreneurs tend to constantly question themselves and their actions. Since you are still trying to figure things out, some of your actions and decisions may only be guesses. That can be frustrating, especially if you spend too much time and money on a project just to find it to be the wrong move. However, you have to keep in mind that these experiences can help you become a better entrepreneur. As time goes by, your guesses will be more accurate and helpful.
- There is uncertainty. Forming a business comes with risks. While you try your best to succeed, you should keep in mind that you are opening yourself to the possibility of failing. No matter how you structure your company to minimize risks, you cannot completely eliminate them. For example, leaving a secure job to pursue a business venture is financially risky. If the business fails, it will lead to a financial setback that will be hard to overcome.
Aside from that, you need to be wary of the uncertainty of the industry. You may be successful at first, but many external factors can lead to economic downturns. There may also be more competitors targeting the same consumers. No one can anticipate potential changes in the business environment. That is what makes entrepreneurship more challenging.
What You Should Do To Start
If you think you are ready to start a business and you have come up with a solid business plan, the next thing you have to do is to register your business with the state. All companies have to formally organize their businesses by submitting paperwork and paying the corresponding fees.
The requirements will depend on the state and business entity structure that you choose. If you want a structure that offers protection for your personal assets, then you may want to consider a limited liability company (LLC).
Aside from asset protection, a Wyoming LLC offers the following benefits:
- There are no state taxes.
- You do not have to submit a list of the owners and managers to the state.
- Wyoming has great asset protection laws.
- There is no citizenship requirement for LLC owners, which are also known as members.
- Your LLC can have perpetual life.
- The state allows the transferability of ownership.
- Your LLC can build credit and raise capital.
- There is no limit on the number of owners.
The registration process in Wyoming starts with choosing a distinguishable name. You have to make sure that no existing business entity in the state is using the company name that you want. Then, you can proceed with the filing of formal paperwork. You have to submit the Articles of Organization with the Secretary of State. It comes with a $100 filing fee.
Depending on your business activities, you may also need to obtain additional business licenses and permits. You may have other reporting and tax filing requirements as well. Check these with the state, city, and county governments. If you want to learn more about forming a Wyoming LLC, you can read our simple guide.
The Wyoming LLC formation process requires attention to detail and patience. It may be a bit overwhelming for a first-time entrepreneur. If you think you need help with the filing process, then contact our team of experts at DoMyLLC. We can create a personalized solution to make sure that the service you will get will fit the circumstances and needs of your company.
We can also serve as your company’s registered agent, which is one of the requirements set by the state. Additionally, we are capable of handling subsequent compliance requirements for your business. Talk to us now to find out more about the services that we offer.
Business Filing Section