Wyoming LLCWhy Form an LLC in Wyoming
For as long as LLCs have existed in the United States, business owners have chosen to form their LLCs in Wyoming. In fact, Wyoming was the very first state to recognize the LLC as a business entity back in 1977, and it has been one of the most popular choices for small business formation ever since.
You can create a Wyoming LLC from almost anywhere. You don’t have to live in Wyoming, and your company doesn’t need to do any business there. In many cases, you and your business activities don’t even have to be located in the country to create a Wyoming LLC.
Limited liability companies are popular because they combine the pass-through taxation benefits of a sole proprietorship with the credibility and liability-shielding benefits of a corporation. Regardless of where you file your organizing documents, the LLC business structure will allow you to avoid many of the costs, hassles, risks, and formalities associated with other forms of business.
LLCs are especially advantageous because of their increased flexibility, enhanced asset protection, better tax benefits, and simple maintenance (among other perks).
Let’s walk through the advantages of forming a Wyoming LLC below.
Advantages of Forming an LLC in Wyoming
- Up-to-date LLC laws. Even though Wyoming has the oldest LLC laws on the books, they’re far from outdated. Wyoming values its reputation as one of the three leading LLC states (Delaware and Nevada are the other two), and so it acts aggressively to stay competitive. Wyoming regularly updates its LLC laws as needed to keep up with the times.
- No state taxes. Wyoming does not charge state-level income tax or corporate taxes on LLCs. There is no individual state income tax in Wyoming either.
- Some of the best asset protection in the country. Wyoming is known for its high degree of asset protection for LLC owners and investors. Owners don’t have to worry about gambling their personal finances or assets on the success of the company, and investors can take a risk on your LLC without having to fear personal liability in most cases.
- Better privacy protection than most other states. Most states have entered into an Information Sharing Agreement with the IRS, but not Wyoming. This means the state department will not hand over information about your LLC’s income to the IRS. Additionally, Wyoming requires only minimal disclosure and reporting. You do not have to list members, managers, or owners by name in the public records. (Most states do require a greater level of identification disclosure.)
- Special business structures are available for Wyoming LLCs. Wyoming is one of only a few states to specifically offer Close LLCs. (Similar to a close corporation but designed with the LLC in mind, this special business structure is ideal for small, closely held family businesses.) Wyoming also allows an LLC entity to serve as trustee of an Asset Protection Trust.
- Easy to Form in Wyoming from Outside Wyoming. Don’t live in Wyoming or do any business there? You can still form your company as a Wyoming LLC and take advantage of all the state’s special structures and protections. In many cases, that is even true for business owners outside the United States. Easy LLC can help. Already Formed Your LLC in a Different State? Moving to Wyoming Is Easy.