Wyoming LLC costs: summary
Here’s a quick overview of the typical costs associated with forming and running an LLC in Wyoming:
| Item | Cost |
|---|---|
| State filing fee (Articles of Organization) | $100 |
| Processing fee | $3.75 |
| Reserve business name (optional) | $60 |
| Trade name (DBA) registration (optional) | $100 |
| Registered agent service (optional) | $50–$300 per year |
| Operating agreement (optional) | $0 to $1,000 |
| Annual report | The greater of $60 or two-tenths of one mill on the dollar ($.0002) |
| Self-employment tax | 15.3% |
| Business license | Varies by city and industry |
| Certificate of good standing | Free online ($20 for a paper certificate) |
| Business amendment or dissolution | $60 |
You’ve done all the planning, all the prototyping, all the market research, and you’ve decided it’s time … you’re ready to start your LLC.
Setting up a limited liability company (LLC) in Wyoming is neither impossible nor expensive, but it does require you to know what you’re doing. That means taking certain steps.
Making this more difficult is the fact that LLCs vary at the state level, so the rules that apply in, say, Colorado do not apply in Utah. By the same token, there are specific Wyoming LLC requirements, rules and costs that differ from other states.
Today’s post is here to help. We’ll answer the common question “How much does an LLC in Wyoming cost?” in detail. We’ll also cover one-time and yearly costs, like the filing fee, annual report and registered agent service, plus formation steps and some FAQs that might be keeping you up at night.
By the end of this read, you’ll know exactly what to do to get started. Let’s dive in.
General costs when forming a Wyoming LLC
Let’s take a quick look at the general steps of forming a limited liability company, along with the cost associated with each. Note that some cost money no matter what, some are free, and some are up to you.
Naming your Wyoming LLC
First and foremost, your biz needs a name.
There are endless directions in which to take this, but you should keep a few basic principles in mind when naming your LLC:
- Make sure it’s easy to pronounce.
- Choose a name that is either associated with your own name, with your profession, or branded well if it’s connected with neither.
- Ask yourself “Will this name grow with my business?” and make sure the answer is yes.
Before you commit too hard, conduct a Wyoming business entity search to make sure no one else is already using that name in the state. The search is free.
If you know you’ve found “the one” but you aren’t yet ready to form your LLC, then it’s wise to reserve your name so no one else can take it. This costs $60 in Wyoming.
Sometimes a business will want/need a different name for their LLC and their public-facing business. This can happen when you want multiple businesses under one LLC, or if you want a very dry LLC name for legal reasons but want to make your public name more appealing.
In that case, you might want a trade name or a DBA (which stands for “doing business as”). Each trade name is $100 in Wyoming.
Filing articles of organization
While they may sound very grandiose, the articles of organization are simply a set of documents stating that your business exists in the state of Wyoming. They include basic information, such as the LLC’s name, address, purpose, structure, and principal members.
The state filing fee for the articles is $100 in Wyoming, plus a $3.75 processing fee, for a total of $103.75.
Appointing a registered agent
Every Wyoming LLC must have a registered agent. You can serve as your own if you live in Wyoming, or pay a registered agent service.
A registered agent receives legal papers (service of process) and official notices for your LLC. Typically, a Wyoming registered agent service costs $50–$300 per year. Tailor Brands’ registered agent service is $199 per year.
Why do so many businesses use a registered agent service? Because, while it does come with an extra cost, the potential financial repercussions of failing to stay in compliance or file paperwork on time can be much, much more.
Creating an operating agreement
Wyoming doesn’t require a written operating agreement, and state law allows one to be oral or implied. Even so, a written agreement is a good idea.
An operating agreement is a document that sets out how your LLC is owned and managed, including how members share profits and resolve disputes. It’s a good idea for any LLC that has a complicated structure or different ownership shares among its members. It may also be necessary depending on the types of financial transactions you plan on making.
An operating agreement is an internal document, meaning you don’t need to file it anywhere. Some LLC owners choose to create it themselves for that reason, which is free.
Others choose to use a lawyer, which could cost up to $1,000 just for this document, or an online template or service for a more affordable option.
Other annual and additional Wyoming LLC costs
Now that we’ve covered the basics, here are some other costs of doing business in the state of Wyoming.
Business licenses and permits
Licenses and permits show that you are allowed to operate your business in Wyoming. They will vary depending on what you do, where you do it, whom you do it for, and what laws govern your activities.
Examples of common Wyoming business licenses include:
- Health code license
- Occupational license
- Zoning permit
- Fire department permit
- Sales tax license
The cost of obtaining such licensing and permitting varies as well along with the exact licenses and permits you need. Costs depend on the license and the city or county that issues it.
Before you proceed with your LLC, make sure you understand all the requirements for licensing in your area, so you do not accidentally run afoul of the law.
Annual report
The annual report updates your LLC’s contact details and reports the value of its Wyoming assets, which sets your license tax. The state requires that every business file a Wyoming annual report by the first day of its anniversary month.
For instance, if you formed your business on April 21st, then you need to file your report by April 1st of the following year. However, you can also file in the 120-day window leading up to your anniversary month.
The fee for filing the report is either $60 or two-tenths of one mill on the dollar ($.0002), whichever is greater. For most companies, it will be the former. The report and fee are required annually to remain in good standing.
Self-employment tax
Wyoming offers business owners a very generous tax advantage. There is no corporate tax levied against your LLC and no personal income tax. There is also no annual franchise tax, a separate business tax levied against businesses in some states.
Members usually pay federal self-employment tax of 15.3% on their share of profits, plus federal income tax. Your LLC may also need to collect sales tax.
Note that this doesn’t mean you’re cleared of federal income taxes, which you will still have to file with the IRS.
Certificate of good standing
In some cases, you may need a certificate of good standing to perform certain business activities in Wyoming. This is sometimes true when getting a loan or expanding your business to other states.
A certificate of good standing is, luckily, both easy to obtain and free. Just head to the Wyoming Secretary of State’s website and download it instantly.
What expenses you can write off
There’s a number of expenses you can write off when doing business in Wyoming.
What does this mean? A tax write off is any legitimate expense that you can subtract from the total amount of your taxable income. That way, you’ll pay federal income tax on a smaller amount.
This is known as lowering your tax burden. It applies to a number of business activities, including filing and DBA fees, operating agreement and registered agent costs, attorney fees, and the cost of completing your articles of organization.
Let’s take a closer look at some of the main tax write offs.
Self-employment tax preparation expenses
If you are the only member of your LLC, you can usually deduct the business part of your tax preparation costs. You can also write off the cost of getting tax help from someone else, if that’s your preference.
Accounting fees costs
Worried you might cook the books rather than keep them? So are many business owners, which is why you are free to hire an accountant and write off the cost.
Registered agent costs
If you have chosen to take the registered agent path, then you’re smart. Not only are you likely to save time and money on potential mistakes, but you can write off the cost.
Attorney fees
Business legal fees are usually deductible. The commonly stated rule is that they must be ordinary and necessary.
This typically includes costs such as creating an operating agreement, getting tax advice, or handling property. Fees related to advice specific to the type of profession in which you practice, or to lawsuits that may arise as a matter of course while practicing, are also deductible.
Just make sure you never pay for personal legal matters, from custody to personal real estate, estate planning or personal injury, with company money.
Wyoming LLC state fees
| Item | Cost |
|---|---|
| Articles of Organization/ Continuance/ Domestication | $100.00 |
| Certificate of Authority | $150.00 |
| Series designated or established under a Series LLC | $10.00 per series |
| Reinstatement for Tax | $100.00 |
| Reinstatement for No Registered Agent | $350.00 |
| Amendment/Dissolution/Any Other Filing | $60.00 |
| Annual Registration of Commercial Registered Agent | $50.00 |
| Appointment of New Registered Agent and Office | $5.00 |
| Registered Agent Information Update | $5.00 per entity affected |
| Resignation of Registered Agent | $5.00 per entity affected |
| Business Entity Summons | $50.00 |
| Resident/Nonresident Motorist Summons | $10.00 |
| Certificate of Existence/Evidence/Good Standing | $20.00 |
| Certifications | $10.00 |
| Expedited filing | $700.00 next business day, $1,400.00 same business day |
Conclusion
While it’s not free to establish an LLC in Wyoming, it doesn’t have to be that expensive and has lower LLC costs than other states. As long as you know what you’re doing or obtain reasonably priced help in the form of a registered agent, you’ll be on your way to Profit City in no time.
FAQs
Always ensure your name is unique, pronounceable, appropriate, and able to withstand the test of time. Perform a business entity search before getting your heart set on any certain name.
At a minimum, you will pay $100 to file your articles of organization and $60 per year when you file your annual report, plus the cost of licenses and permits in your city and industry.
Online filings are approved immediately. Mailed filings can take up to 15 business days.
You need an EIN if your LLC has employees or more than one member. A single-member LLC with no employees may not need one, but most banks ask for one to open a business account.
Submitting your annual report and paying the associated fee effectively renews your LLC for you.
To dissolve your LLC, submit the Limited Liability Company Articles of Dissolution to Wyoming’s Secretary of State along with a $60 fee.