How to Start a Wyoming LLC: Step-by-Step Guide - MarketWatch

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Published: Oct 5th, 2022
How to Start a Wyoming LLC: Step-by-Step Guide - MarketWatch

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Create an Operating Agreement While an operating agreement is not required when forming an LLC in Wyoming, it’s highly suggested that your LLC put one in place.
For example, a group of four friends from Utah decided that forming an LLC in Wyoming was the best way to start their brewery in Jackson Hole, Wyoming.
Inside Scoop: While a single member Wyoming LLC may feel tempted to skip the operating agreement because it only binds the creator of the agreement, this document serves an important role in securing your liability protection.
Get an EIN After forming an LLC in Wyoming with more than one member or employees, the company must get an employer identification number (“EIN”) from the IRS.
Inside Scoop: If you’re a single-member Wyoming LLC with no employees, you aren’t required to have an EIN.
For example, after forming an LLC in Wyoming on Dec.
Wyoming LLC Tax Filing Requirements Wyoming doesn’t have state income taxes, but LLCs are still required to report their income to the IRS.

How to Start a Wyoming LLC: Step-by-Step Guide - MarketWatch

Create an Operating Agreement While an operating agreement is not required when forming an LLC in Wyoming, it’s highly suggested that your LLC put one in place. The operating agreement is a contract between all members of the LLC that includes details essential to keeping your business operations running smoothly. Some common details included in this agreement are: Voting protocols Member responsibilities New member initiation Daily operations Company mission statement Annual meeting dates Dissolution requirements This agreement also functions as a written record of verbal agreements and decisions between members. For example, a group of four friends from Utah decided that forming an LLC in Wyoming was the best way to start their brewery in Jackson Hole, Wyoming. One of the most important decisions the LLC makes after formation is that each member will move to Wyoming within five years of opening the brewery to take turns as acting manager. After three of the four members purchase homes and relocate to Jackson Hole, one member decides to remain in Oregon and denies ever making the agreement. Without a document in place recording this decision, the other members have no recourse to resolve the issue. Inside Scoop: While a single member Wyoming LLC may feel tempted to skip the operating agreement because it only binds the creator of the agreement, this document serves an important role in securing your liability protection. To keep its liability perks, LLC affairs must be distinct from the member’s personal affairs. If your company is faced with legal action for commingling funds, an operating agreement detailing the accounting protocol can help establish separation between personal and business finances. Get an EIN After forming an LLC in Wyoming with more than one member or employees, the company must get an employer identification number (“EIN”) from the IRS. This number is essential for tax filing requirements and other important business activities like opening a business banking account, applying for a line of credit for the LLC or doing business with vendors. Inside Scoop: If you’re a single-member Wyoming LLC with no employees, you aren’t required to have an EIN. However, without one you’ll need to use your Social Security number for applications and dealing with vendors — which puts you at risk for identity theft. Getting an EIN is easy, free and can keep your personal information safe. File Your LLC’s Annual Report Each year on the first of the month in which the LLC was formed, you must file your annual report and pay the license tax. For example, after forming an LLC in Wyoming on Dec. 15th of 2022, your first annual report will be due Dec. 1, 2023. The annual license tax is $60 or 0.0002% of the value of all LLC assets located and employed in Wyoming. If your LLC holds $300,000 or less in assets, your license tax will be $60. While there are no late fees if you fail to file the annual report or pay the tax by the due date, your LLC might face dissolution if you fail to file within 60 days. Wyoming LLC Tax Filing Requirements Wyoming doesn’t have state income taxes, but LLCs are still required to report their income to the IRS. Single member LLCs will file a Form 1040 (personal income tax form). Multi-member LLCs will file a Form 1065 on behalf of the company and each member will file a Schedule K-1 reporting their individual share of the income. In addition to the license tax that’s due with the annual report, there are additional taxes for LLCs that sell physical products or hire employees. If you sell a product, you’ll need to apply for a sales/use tax license and pay the $60 fee using Wyoming’s online portal or by sending a paper application. This will allow your LLC to collect sales taxes on eligible items. If your LLC has employees within the state, you’ll also need to register your business with the Wyoming Department of Workforce Services and pay unemployment taxes. This helps the state provide unemployment insurance to qualifying individuals. The tax rate varies each year and is discounted for new businesses. To get your exact rate, you’ll need to call the Unemployment Tax Helpline at 307-235-3217. Local Resources The Wyoming Business Council offers many opportunities for networking and connecting with government initiatives and other businesses. Some helpful resources include:
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