Forming an LLC can be an intense endeavor for any business owner. And there’s so much information out there about how to start a Limited Liability Company, which can make learning specific information difficult. How long does it take to get an LLC in the state of Wyoming? We’ll tell you about what it’s like to do business in the state of Wyoming, the formation process in Wyoming, the pros and cons of LLC formation in Wyoming, and of course, how long the formation process takes.
Discovering Wyoming
Wyoming is a Delaware Indian word that means either “large plains” or “mountains and valleys alternating. It’s called the Equality State due to the fact that it became the first state that granted women the right to vote and to hold public office and serve on juries.
It has borders with Montana, Idaho, Utah, Colorado, Nebraska and South Dakota. The Great Plains is spread across the eastern section of the state, and is full of short grasses and shrubs. You’ll also find mountains, the Red Desert (the biggest living dune system in the country), The Devils Tower National Monument ( a flat- topped hill called a butte), the Black Hills, the Rocky Mountains, the Grand Teton National Park, and Yellowstone National Park, as well as a basin region nestled between the mountain ranges with some trees and short grasses.
When it comes to natural resources in Wyoming, we have to start the conversation off with coal. Wyoming is the nation’s biggest producer of coal. It also produces a lot of natural gas, petroleum and bentonite, which is a type of clay produced from volcanic ash which is used in detergents, construction, foods, and cat litter.
Economic Overview of Wyoming
Wyoming’s Gross State Product (GSP) is $36.0b with a growth rate of -0.7% from 2017-2022. The top industries in the state by revenue are Oil Drilling & Gas Extraction, Petroleum Refining, Gasoline & Petroleum Bulk Stations, Coal Mining, and Gasoline & Petroleum Wholesaling. The companies that employ the most workers in Wyoming are Walmart Inc., University of Wyoming, Wyoming Medical Center, The Home Depot, Inc., and The Kroger Co. And the sectors that contribute to the state’s overall GDP the most are Mining, Real Estate & Rental & Leasing, Manufacturing, Transportation & Warehousing, and Retail Trade.
Business Environment in Wyoming
The business environment in Wyoming was rated #40 by usnews.com, employment was rated #31, and growth was rated #34. Job growth in the state is 1.2%, compared to the national average of 2.7%. Long-term fiscal stability in the state was rated #25, and short-term fiscal stability is rated #1.
Affordability in Wyoming are rated #19, while economic opportunity is rated #23. The cost of living index is 91.9 (national is 100.0), the median household income is $70,042 (national is $74,755) and the poverty rate is 11.8% (national is 12.6%).
Transportation in the state is rated #3, which makes sense because only 4.2% of roads in the state are in poor condition. This is well below the national average of 18.3%.
A lot of Wyoming’s culture is centered around its frontier history. Cowboys and the rodeo are often associated with the state, and the official state sport is rodeo. It’s symbol is a horse bucking its rider which was based on a 1900s famous bucking bruno named Steamboat.
Tourism is a major industry in the state thanks to its impressive seven national parks, like Yellowstone. Other major industries in the state are energy, engineering, and agriculture.
State Specific Regulations and Incentives for Forming an LLC in Wyoming
Here’s a look at the programs and incentives in Wyoming in place to help businesses in the state.
- Business Ready Community Grant and Loan Program: This program provides both grants and loans to cities, towns, counties and joint powers boards to promote local economic development. The typical maximum award payout is $3 million. You can use these incentives for a public infrastructure project where the business is determined to locate or expand in the community, and provide workforce training facilities. These grants and loans are also available for projects where a community is in favor of building facilities or installing infrastructure designed to prepare for new business development using specific strategies or plans of action.
- Manufacturing Sales Tax Exemption: Fuel for power or for transporters which is used in manufacturing or processing is exempt from the sales tax. Lease or sale of machinery used in manufacturing is also exempt.
- Broadband Sales Tax Exemption: Broadband internet service providers can receive a sales tax exemption for equipment purchases which are used while providing broadband internet service to previously unserved areas. The state government defines an unserved area as service to residential customers at speeds under 25 megabits per second for downloads and 3 megabits per second for uploads, or in business corridors in municipalities with populations under 2,000, 25 megabits per second for downloads and 3 megabits per second for uploads. In places with populations of 2,000+, it’s 50 megabits per second for download and 5 megabits per second for uploads. For business corridors in unincorporated areas, it can be 25 megabits per second for downloads and 3 megabits per second for uploads.
- Data Center Sales Tax Exemption: Data center users can get a sales tax exemption for equipment for projects along with a $5 million investment on capital infrastructure as well as another $2 million for data center equipment and software purchases. With a $50 million capital infrastructure investment, HVAC and UPS systems purchases also receive tax exemptions.
- Coal Gasification and Liquefaction: Sales and purchase of equipment that is used to build new coal gasification and coal liquefaction facilities are exempt from sales and use taxes.
- Property Tax Exemption: Goods manufactured and/or assembled in Wyoming that has a final destination somewhere outside of the state, as well as personal property that’s in transit in interstate commerce has a tax exemption, and so does pollution-control equipment.
- Managed Data Center Cost Reduction Grant: Data center operators can get reimbursement for both the costs of electrical and broadband thanks to the Business Ready Communities Grant and Loan Program. The maximum award amount is $2.25 million dispersed over three years. A match minimum of 125% in the form of payroll and capital expenditure is required. Half of that match must be used to create payroll. And payroll is required to be 150% of the county’s median wage.
- Workforce Development Training Fund: There are three types of training grants in the state, the Pre-Hire Economic Development Grants, the Business Training Grants, and the Internship Grant. Business Training Grants offer opportunities for new and existing businesses in the state to create new jobs and upgrade necessary skills for workers to remain competitive. Awards of $4,000 per trainee, which goes up to $5,000 per trainee in preferred industries. Pre-Hire Economic Development Grants supply pre-employment and industry-specific skills to create a workforce for businesses or industries during skilled worker shortages. With the internship grant, as much as 520 hours at $25 per hour per internship is covered.
Pros and Cons of Establishing an LLC in Wyoming
There are both good and bad aspects of forming an LLC. Here are both the pros and cons so that you have the full picture.
Pros:
- LLCs are pass- through entities. This means that the LLC itself isn’t taxed, but rather the income of LLC members is taxed when they pay personal income taxes.
- There’s no state income tax in Wyoming.
- LLC members enjoy privacy. Reporting obligations in the state are low, members don’t have to be listed and neither does their contact information, and LLCs aren’t maintained in the state’s public records.
- LLCs in Wyoming have perpetual life. If the owner leaves the company or dies, the company isn’t dissolved.
Cons:
- Although Wyoming offers privacy for LLC members, each LLC member or manager is required to provide both contact information and identification to their registered agent. The Secretary of State is allowed to request this information from your registered agent, too.
- The protections and privacy for Wyoming LLCs only extends to residents of the state. So if you have an LLC member living in another state then they’ll have to obey different laws when it comes to the protection of their assets.
- Filing for an LLC in the state will require you to pay a fee of $100.
Procedure of Establishing an LLC in Wyoming
In this section we’ll break down all the steps to form a Limited Liability Company in Wyoming. Let’s start with the documents you’ll need.
Necessary Documentation for Filing an LLC in Wyoming
To file an LLC you’ll need a number of documents. Here’s a look at the documents you’ll need to have on-hand.
- Articles of Organization: This is the most important formation document you’ll collect and fill out. It’s your application to receive an LLC. It may ask for your business’s name, purpose and duration, your business address, and your registered agent’s information.
- Operating Agreement: Your company’s operating agreement isn’t a legal requirement, but you can trust us when we say you need one nonetheless. It’s a crucial internal business document that describes the intimate operation details of your business and also serves as a legal agreement between LLC members. Some of the information that will likely be included in the document includes a list of LLC members and their contact information, along with their contributions and roles in the company and their ownership shares, details about how profits and losses will be distributed, and information for managers like member voting rights and a meeting schedule. Another important section is the one that describes how to add or remove a member. It answers questions about what to do if a member leaves or dies. It’s also important to remember that although the Secretary of State may not require you to provide member names and contact information on your Articles of Organization, you will have to provide that information on other documents and to other entities.
- Employer Identification Number (EIN): Your company is going to need an Employer Identification Number or EIN, which is a number used by government agencies to uniquely identify your business, to complete actions such as hiring employees, filing tax forms and opening a business bank account. You can obtain yours for free from the IRS website.
- Name Reservation Application: The law in Wyoming is clear: you can’t use a business name if it’s already in use by another business in the state. Furthermore, you can’t use a business name too similar to a business name already in use. To find out whether you can legally use your business name, run a search of the business name database on the Secretary of State’s website. Once you’ve found a name you can use, you’re required to file an Application for Reservation of Name to keep other businesses from using it for 120 days.
- Initial Report: Every LLC in Wyoming must file an annual report each year. It comes with a filing fee of $50. The first one is filed along with your Articles of Organization, is called an initial report, and there typically isn’t a filing fee associated with it.
- Tax Registrations: If you’re going to be selling goods and services or collecting sales tax then you’ll need to sign up with the Department of Revenue. Actually, registering for taxes with the Department of Revenue will make taxes flow more smoothly later, so it’s a good idea either way.
- Business Licenses: Wyoming doesn’t require a standard or state business license, but you’ll still need to check in with county and municipal clerks for local licensing and permit requirements.
Legal Requirements for Starting an LLC in Wyoming
These are the steps you’ll need to take to form an LLC in Wyoming.
- Get an Articles of Organization Form: The first thing you need is to get a copy of the Articles of Organization form. It is, afterall, your application to obtain an LLC. You can get yours from the Secretary of State.
- Pick a Business Name: As we’ve discussed in the previous section, choosing a business name isn’t simple. You need to find one that meets all of the state’s legal requirements. And once you’ve found one, you must submit an Application for Reservation of Name to the Secretary of State.
- Designate a Registered Agent: Every LLC must have what’s known as a registered agent. This is a person or business whose job is to receive mail from government agencies and accept service of process on your company’s behalf. And they’ll do this at their address. As you can choose a citizen or a business, you could choose an employee and they could use your business’s physical address but the mail would be directed to them. This is quite an important role. If your registered agent slips up, it could cost you your company’s ability to conduct business in the state. Because of this, many business owners choose to hire professional registered agent services. You also need to know that your registered agent is required to have a list of LLC members and their contact information, and that the Secretary of State can request this information from them.
- Pick a Business Address: Your business address is another careful consideration to be made. If your business lacks a physical address, it may be tempting to use your home address. But this will lead to your home address being listed on public record, which not only poses security and privacy concerns, but is also just a creepy circumstance to find yourself in. Alternatives to this include talking to your registered agent and asking to use their address, or researching virtual addresses in Wyoming.
- Sign and Submit Your Articles of Organization: The last step is to, after making sure you’ve included all of the necessary information and that it’s all correct, sign and file your Articles of Organization to the Secretary of State. Once you’ve done so, you’ll need to wait for the Secretary of State to reach out to you and let you know about your LLC’s approval.
Time Frame for Establishing an LLC in Wyoming
The total duration of your LLC formation depends on which time frame you’re looking at. Let’s look at formation times in Wyoming.
How Long Does the Initial Paperwork Take in the State of Wyoming?
Approval times, which are the total formation time from submission of your documents to approval and include processing time, to file by mail are 4-5 weeks, or immediate if you file online.
Processing Times in the State of Wyoming
Processing times only account for the amount of time it takes for the Secretary of State’s office to review your documents and enter the information within them to their computer system. Processing times are 10-15 business days for mail filing, and immediate for online filing.
Common Delays in the LLC Formation Process in Wyoming
Unfortunately, there are a few situations that could occur that have the potential to slow down the formation process. Here’s a look at some things that can hold up your LLC’s formation.
- Document Errors: Your documents must be immaculate, with no errors. Errors or inaccurate information could lead to you being required to file a Statement of Correction. That entire process could take an additional 15 days.
- Time of Year: Most LLC filings are submitted during the beginning or the end of the year. These high volumes of filings can cause delays. To avoid delays, find out when annual reports and taxes are usually filed for businesses in your state and then choose a time that doesn’t coincide with them.
- Weekends and Holidays: Government workers need breaks too. Ordinarily, they aren’t in the office on weekends or on government holidays. This means that if you file on or just before a holiday, you could experience a delay. Furthermore, if you file during the holiday season then you should expect delays.
Expedited Processing for LLC Formation in Wyoming
Expedited processing is a good way to accelerate the formation process in many states. Here’s what you need to know about expedited services in Wyoming.
What Are the Expedited Options Available?
There aren’t expedited processing options in Wyoming. This is likely due to the immediate processing of online filings.
Additional Costs for Expedited Services in Wyoming
In states with expedited services, you must pay the fee for expedited processing in addition to filing fees. Yes, it’s an add-on fee. But it’s one you can avoid entirely in Wyoming as it isn’t offered.
Comparing LLC Formation Time Frame in Wyoming with Other States
Taking a close look at the difference between the processing times of your state and other states can help you learn how fast your state’s times really are. It can also help you make tough decisions, like whether a foreign LLC is ultimately best for you.
Brief Comparison with Key States
Processing times for mail filing in Wyoming are 10-15 business days, or immediately for online filings. And there isn’t expedited processing due to the immediate processing of online filings.
Online filings in Washington are processed in 12-14 days, 13-15 days in Texas, 2 weeks in Maryland and 14-16 days in Arizona. Mail filings are processed in 4-6 weeks in Oregon, 4-8 weeks in Texas, 6 weeks in Pennsylvania, 5-6 weeks in Washington, 5-8 weeks in Maryland and 8 months in New York. Expedited processing isn’t always faster, either. It takes 5 days in Arizona and 7 days in Maryland.
Mail filings are processed in 1-2 days in Alabama, Massachusetts and South Dakota, and just one day in Ohio and Kentucky. And California has an expedited processing option that takes 4 hours, it’s 2-4 hours in Louisiana, 2 hours in New York, and Delaware, Michigan, Montana, Nevada, Pennsylvania and West Virginia all have 1 hour expedited service options.
Why is Wyoming a Favorable Place for Forming an LLC?
Wyoming can be a good place to form an LLC because of the unique freedoms it grants LLCs in the state. There isn’t a state income tax in Wyoming, which provides lots of tax savings. It also provides a layer of privacy for LLC members that many states don’t.
