How to Start a Business in Wyoming in 11 Easy Steps

Wyoming, the Cowboy State, is a place that is full of wide open spaces and a state that is truly open for business. The state of Wyoming is well known as a great place to own and operate a business, not only for its small-town vibe and friendly folks, but because the state and local governments make it so easy. With no state personal income taxes or corporate income taxes, Wyoming is winning over entrepreneurs from all over the country. A wide range of industries call Wyoming home, from international corporations focusing on energy and agriculture to tiny mom-and-pop operations that work from home. Wyoming is where you want to do business.

Starting a business is a huge endeavor that can even intimidate experienced entrepreneurs. But when you break the process into smaller steps, it will allow you to tackle your startup without feeling overwhelmed. Here are the 11 steps to starting a business in Wyoming:

1. Fine-tune your business idea to avoid disappointment.
2. Create a business plan to help guide you in the right direction.
3. Choose a business name that your customers will embrace.
4. Choose a business structure that makes the most sense for your situation.
5. Set up banking, credit cards & accounting to avoid future financial disasters.
6. Get funding for your Wyoming business to finance your dream.
7. Get insured to protect yourself from the unexpected.
8. Obtain permits & licenses to stay legal.
9. Find your team to help you on your journey.
10. Market & grow your business to secure repeat customers.
11. Open the doors and start making money.

1. Fine-tune your business idea

You probably already have what you think is a great idea for your future business. It may be something you’ve dreamed about for years, but does the venture really have a good chance of being successful? Now is the time to put away your ego and do the real work to determine if it’s actually a good business idea or a dud. After all, it is better to learn now that your concept is not going to work than after you spend your money and time chasing a poor prospect.

But, how do you do it? How do you determine if you have the golden ticket or just an iron anchor? Start by asking yourself the following questions, and being radically honest about the answers.

• Do you have the background and skills to run the business you want to start? Running a business requires practical experience and knowledge. When evaluating your skillset, think not only about the customer-facing work you’ll do each day, but also about the backend responsibilities such as bookkeeping, inventory management, scheduling, and marketing. If you don’t have certain skills, do you have the ability to, and the willingness, to find those who do?
• Does my business idea solve real-world problems that people are willing to pay for? Brick-and-mortar businesses need to address genuine local needs, and in a state that is as sparsely populated as Wyoming, you must be absolutely certain you have a ready market. Online businesses have a further reach, but also more competition, so what stands out about the solution you are offering?
• Do I understand what it takes to build trust and market my business successfully? In the tight-knit communities of Wyoming, reputation matters more than in larger population centers. Word-of-mouth, both good and bad, carries a lot of weight. Being successful demands addressing the needs of not just your customers, but of the community as a whole. Are you willing to commit to engaging locally?
• Can my business realistically operate within the geographic, logistical, and climate of Wyoming? Wyoming’s vast size, harsh weather, and low population often mean resources are sometimes limited. Long winters and few suppliers can hinder a business, especially if your business depends on timely deliveries of physical products. Can you find ways to overcome these challenges?
• Are there legal, zoning, or licensing requirements in Wyoming that may restrict my business from operating? Although Wyoming is a very business-oriented state, it isn’t the Wild West, and there are still legal requirements your business must meet. You will need to research any regulations that apply to your business idea.

2. Create a business plan

Every journey needs a roadmap, and building a business plan is clearing the path to your success. Your business plan is essential for understanding what your business will do, who it will serve, and how it will operate. A solid business plan will not only save you time, money, and heartache later on, but it is also necessary if you plan to secure funding for your venture.

Market research

Good market research will help you to identify who your potential customers are, what their needs may be, and how they prefer to spend their money. It should also reveal your main competition, and outline what they offer, what they do well, and where your business may do better. Don’t forget to consider the location of your business, including the demographics, and how that may affect your company.

Financial plan

The financials in a business plan need to outline startup costs, planned operating expenses, expected revenue, and a projected break-even timeline. Be sure to include as many expenses as possible, including the costs of business formation, insurance, rent, utilities, etc. The more complete you draw the financial picture, the more helpful your business plan will be for you and any potential investors, so get help if you need it.

Marketing plan

A strong marketing plan addresses branding, how you plan to advertise your business, how you want to position your brand, and what messaging you will use. In today’s world, online marketing, especially through social media, is key to success, so you’ll probably want to include it here. A great place to start is by creating a logo.

Choosing a location

The physical location of your business can make or break it, and that applies to more than just retail. Where you decide to set up shop has a huge impact on visibility, accessibility, operating costs, and even how easy it is to hire, train, and retain staff. In Wyoming, where cities are spread out, and customer concentrations vary widely, deciding where to locate your business is one of the most important decisions.

Of course, your location needs to reflect the type of business you plan to open. Tourist-focused businesses have to be close to attractions, businesses that depend on access to shipping need to be near highways, and those that provide everyday shopping and services are best in larger cities.

But there are other issues you need to worry about before committing to a location. Zoning regulations can limit which types of businesses are permitted and affect how companies do business. Since zoning restrictions differ from one municipality to the next, you will need to check the regulations prior to settling on a location.

Then there is cost. Whether you are leasing or purchasing property, the cost of commercial properties varies widely. You will also need to consider the cost of other expenses, including utilities, maintenance, insurance, and construction. All these factors should be included in your business plan.

Decide if you will run an online-only business

Don’t make the assumption that if you decide to operate an online business, location doesn’t matter. It does. You will still need to deal with zoning regulations, shipping limitations, and all the other issues that affect brick-and-mortar stores. But in addition, you’ll need to consider technical issues.

An online business is still a business, and must comply with all the licenses and permits requirements like any other Wyoming business. In addition, you’ll need a reliable website, a secure system to process orders, and dependable shipping methods to ensure customers receive their orders on time. Your business plan should also include strategies for social media engagement, online advertising, and other digital marketing tools to help customers find you.

3. Choosing a business name

There is more to choosing a name for your new business than coming up with something that simply “sounds nice.” A good name needs to be distinctive, on-brand, instantly identifiable, and easy to pronounce. Since your company’s name is the first contact the public has with your business, it should be something that creates trust and entices potential customers. And, of course, it must be compliant with Wyoming’s business naming regulations.

Wyoming has strict requirements when it comes to business names, so it is well worth getting to know them. Some of the most important ones include:

• The name must be significantly different from any other Wyoming-registered entity. Significance is the key here. Abbreviations, plural and singular variants, and altering the punctuation are not considered distinctive. Perform an Wyoming business entity search to check if your name is unique and ensure it is not already in use.
• Some words, like “bank,” “education,” “trust,” and “institute,” are restricted and require approval for use.
• Simply adding “inc,” “llc,” “corp,” or any other type of business structure to an existing name is not allowed.

If you plan to operate under a name different from your legal business name, you’ll need to file a DBA (Doing Business As), also known as a trade name, with the Wyoming Secretary of State. A DBA Wyoming registration allows you to legally operate under an alternate business name for branding or marketing purposes while maintaining your original legal entity.

4. Choose a business structure

The wrong business structure can cost you money and may even lead to unnecessary legal issues. Therefore, it is a good idea to spend time considering which one is best for you. While Wyoming is well-known for its favorable LLC regulations, starting an LLC may not be the best option for you.

Each type has its advantages and disadvantages:

Sole Proprietorship

A sole proprietorship is the simplest business structure since it doesn’t require any formal registration. However, that simplicity comes at a cost: no legal protection. Since there is no legal barrier between your company and yourself, you can be held personally responsible for the debts or legal obligations incurred by your company.

Limited Liability Company (LLC)

A Wyoming LLC is the most popular business structure in the state because it provides a good mix of simplicity and personal protection. Unlike a sole proprietorship, an LLC shields the business owner’s personal assets from being attached to any legal matters associated with the company. While you do need to file for an LLC, and there are ongoing responsibilities and costs, like an annual LLC fee, many business owners find the peace of mind that an LLC brings them is well worth it.

Corporations

Forming a corporation in Wyoming is a good option for larger businesses that want to issue stock or entice investors. Like LLCs, corporations offer personal protection against lawsuits and anonymous ownership, but they have a lot more costs and responsibilities associated with them, such as annual meetings, creation of bylaws, and the requirement to keep detailed records.

5. Setting up bank accounts, credit cards, and accounting

Businesses are all about money, and before you can start earning it, you need to create a backend system to process, hold, and keep track of it. Setting up a bank account, credit card processing, and bookkeeping is a critical step to starting a company.

You can set up a business bank account at almost any bank, but larger banks are often quicker and easier because they have more experience with these types of accounts. To open a business account, most banks will require your EIN, business formation documents, such as Articles of Incorporation or Organization, and an LLC Operating Agreement or corporate bylaws. Some banks may require proof of your business’s physical address or the address of your registered agent. Although some banks allow you to set up a Wyoming bank account remotely, others will require you to do it in person.

In today’s world, you really need to accept credit cards, and to do that, you need a third-party processor. Many small businesses use one-step solutions, including PayPal, Stripe, and Square, that provide the equipment and the backend system to process credit card payments. Setup is usually easy, but it will require a business bank account. Prices and fees for third-party credit card processors take a bite out of your profits, so make sure to shop around for the best option that works for you.

Just because there is no corporate income tax in Wyoming doesn’t mean that you don’t have to be on top of your accounting. Every business needs a reliable bookkeeping system. You may want to hire an outside accounting firm, especially if you need to deal with payroll, or you can opt for in-house accounting. Some business owners get by using manual spreadsheets, but most find dedicated software like QuickBooks or Xero to be a better option.

6. Get funding for your Wyoming business

Every venture needs capital, and choosing the correct source can have major implications.

Bootstrapping

The money for most small businesses comes from personal savings or the income from another source. Bootstrapping avoids taking on additional debt and not having to deal with investors, but it comes with the risk of being underfunded, which can have negative effects on your business. Still, it is a good approach for businesses with low startup costs.

Personal loans

Another popular option for funding is accepting personal loans from friends and family members. Many loans come with zero or very low interest rates. This can be an attractive option if you personally don’t have the money to cover your business startup, but know people who do. However, you need to be careful that the financial arrangement doesn’t hurt your relationship. The best way to do this is by drawing up a contract and treating it as business-like as possible.

Small business loans

Business loans come from banks and other financial institutions. These traditional loans typically come with hefty interest payments, but working with the SBA through a partner lender can lower the interest. A small business loan is a good option as long as you are willing and able to pay it back.

Investors

If you are open to trading some ownership and control of your business in exchange for capital, bringing in an investor may be an option. However, investors tend to be very selective and usually back businesses with the potential for strong growth, which makes attracting them relatively rare. If you manage to secure an angel investor, you gain not only funding but also access to their expertise and connections, which can be valuable as your business grows.

Grants

Grants are free money you can use for your business that you never need to pay back. Sounds great, and it is if you can get one, but competition for grants is fierce. Still, if you meet the criteria, you have little to lose by applying for small business grants Wyoming. The two grants below are specifically for Wyoming businesses.

Kickstart Grant Program
Funding amount: $5,000 to $50,000
Overview: Kickstart grants are for small businesses founded in Wyoming, but with plans to expand their businesses outside the state. The grants require at least half of the employees to be Wyoming residents.

SBIR Matching Grant Program
Funding amount: Up to $100,000 for Phase I federal SBIR awards, and up to $200,000 for Phase II awards
Overview: Wyoming businesses that already have a federal SBIR or STTR grant can get additional money using this grant program.

7. Get insured

You’ve heard it before, “better safe than sorry,” and when it is your business that’s on the line, the saying couldn’t be more true. Choosing, purchasing, and renewing insurance is an important, but often overlooked expense when starting a business. While the exact type of insurance and the amount of coverage will differ, there are a few common insurance policies that Wyoming businesses take out.

Required insurance for Wyoming businesses

• Workers’ compensation insurance is administered through the Wyoming Department of Workforce Services and is required by almost all businesses that have employees. The insurance pays the employees for lost wages and compensation if they are hurt on the job.
• Unemployment insurance gives employees peace of mind by providing financial benefits if they lose their jobs. Employers need to pay a portion through payroll taxes, but they still need to register employees during the hiring process to stay compliant.
• Commercial auto insurance is a requirement for any business that allows its employees to operate vehicles. Personal auto insurance coverage does not extend to commercial vehicles.

Recommended insurance for Wyoming businesses

• A business owner’s policy (BOP) is an umbrella policy that includes the insurance policies most businesses want to buy. A BOP policy is typically cheaper than purchasing coverage separately, but the needs of your business may not be compatible.
• General liability insurance protects businesses from the financial cost of bodily injury, property damage, and other accidents that occur during typical business operations. Even home businesses may require this type of coverage because most homeowner policies don’t cover work-related incidents.
• Personal liability insurance is for service industry professionals like accountants and contractors who want to protect themselves if they are sued by their clients for mistakes.
• Property insurance covers losses to physical commercial property, including inventory, equipment, and structures. Think of it as a homeowner’s policy for business owners.
• Business interruption insurance compensates companies when a covered event, like a fire or a major storm, causes physical damage to the business. The business may receive compensation for lost income if the damage prevents the business from operating.
• Cyber liability insurance is critical in this day and age of increasing data breaches, hacking, and online fraud. This type of coverage is particularly important for companies that conduct business online or digitally store sensitive customer information.

8. Obtain permits and licenses

There is no general Wyoming business license, but most businesses do wind up needing to apply for one or more other state or local permits and licenses. The exact permits and licenses your business requires depend on your industry and location within Wyoming, but below you can find a list of some of the more common ones.

• A sales tax license is necessary for any business that is required to collect sales tax on taxable goods or services in the state of Wyoming.
• Food and beverage permits are necessary for any establishment that cooks and prepares food in Wyoming to ensure health and safety standards.
• Daycare licensing is needed for businesses operating daycare centers in Wyoming to guarantee the centers adhere to proper health, safety, and staffing requirements.
• Contractor licensing can be at the state, county, or municipal level to ensure tradespeople are qualified and meet all the requirements.
• Building, zoning, and signage permits are handled at the municipal level and restrict how you can use or change a property.

9. Find your team

Even the most dedicated entrepreneur can rarely run an entire business alone. Getting help, even occasionally, isn’t something you should feel bad about. In fact, when you own a business in Wyoming, you have access to some of the greatest people in the country.

Filling available positions with employees and contractors you can depend on will help you strengthen your business and take it further than even you thought possible. But you need the right staff, and finding them takes longer than you think. Therefore, it is best to recruit early and be as creative as possible to find the best people. Local referrals are great, but if you aren’t lucky enough to have them, contacting the local Chamber of Commerce or accessing the resources at the Hire WYO can be a big help.

If you don’t require full-time employees, but still occasionally need assistance, independent contractors are a good option to bring on board for special projects. Since you only pay independent contractors when you need extra help, you can save money. However, it is critical that you don’t hire independent contractors and treat them like full-time employees. Discover how the IRS defines independent contract workers so you won’t wind up with legal issues in the future.

Once you assemble your team, you need to keep them, and that means treating them right and being compliant with hiring practices, payroll requirements, and other labor regulations. The Wyoming Department of Workforce Services is a wonderful resource to learn more about important labor laws you need to follow.

10. Market & grow your business

Marketing your business locally in Wyoming is different. Smaller communities translate into customers who really want to feel connected with the places they shop. The most effective marketing in Wyoming is the kind that helps to create relationships between your business and the locals.

Marketing doesn’t need to be expensive. Here are a few low-cost marketing ideas that work:

• Invite customers to join a mailing list. Add value to your mailing list by offering discounts and exclusive offers mixed with local news related to your business or industry.
• Offer special promotions and a loyalty program. People love to feel special and appreciated, and if your business makes them feel that way, they are more likely to return.
• Collaborate with other local businesses. Whether you join with other local businesses for a charity event or a sidewalk sale, the publicity of community events will drive customers to your cash register.
• Invest in word-of-mouth. Treating customers will lead to the best marketing of all, word-of-mouth.
• Encourage online reviews. Happy customers who leave glowing reviews on Google, Yelp, and Facebook can really generate new sales.
• Create helpful content. Truly helpful blogs, videos, and guides can establish your expertise and encourage people to work with your business.

11. Open the doors

Finally, after all your hard work, the big day has arrived. Nothing is going to ruin it; well, that is not totally true. A poor opening can hinder your new business, so it is always a good idea to create a buzz for the launch.

Consider making your grand opening extra special by incorporating one of these ideas:

• A ribbon cutting with the Chamber of Commerce is a good photo opportunity and a great way to introduce yourself to the area’s business community.
• Social media announcements of the big day are a wonderful first step to establishing your digital marketing.
• Grand opening sales bring in a lot of potential customers.
• A local press release spreads the word that a new business is opening in the community.
• Giveaways or demonstrations create a festive atmosphere and form a positive relationship between your business and the community.

Conclusion

With the business now officially open, your work is only beginning. But don’t worry. Once you make that first sale at your own business, it will all be worth it.

After working your way through this 11-step process, you’ll have a viable business that can hopefully thrive for years to come.

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