Wyoming Startup

Deciding which Wyoming startup business type to form is one of the most important decisions you can make as an entrepreneur. Corporation, LLC, trade name, nonprofit corporation—each has its own tax responsibilities, startup costs, and personal liability protection.

ClickAndInc.com brings you information on each of these entity types so that you can make the best decision and get your business off to a great start!

Wyoming Trade Name

Any entity may register a Wyoming trade name—an individual, corporation, LLC, or other business entity. Registration of a trade name does not create a separate entity, nor does it provide limited liability protection to its owner or owners; it is simply one entity doing business under a name that is not the entity's legal name.

Wyoming trade names, like other businesses in the state, are registered with the Secretary of State in Cheyenne.

Incorporate in Wyoming

If your business will have a large amount of money tied up in inventory or will be taking out large loans, you may decide to incorporate in Wyoming to take advantage of the limited liability protection offered by this structure.

There are two main types of for-profit corporations: a C corporation and an S corporation. C corporations have a higher tax responsibility and a flexible ownership structure, while S corporations provide a lighter tax burden and more stringent ownership rules.

Wyoming Foreign Corporation

Before a corporation that has been formed in another state does business in Wyoming, it must register as a Wyoming foreign corporation by submitting an Application for Certificate of Authority.

In addition to the application and the filing fee, a Wyoming foreign corporation must submit a Certificate of Existence or Good Standing from its domestic state. This Certificate must be dated within 60 days of filing.

Wyoming LLC

An LLC, or limited liability company, also registers with the Secretary of State. It will submit Articles of Organization along with the filing fee.

Like a corporation, a Wyoming LLC (or limited liability company) is legally separate from its owners. Unlike a corporation, the business is not required to distribute profits in a way that corresponds exactly to the amount of business capital each member/owner has contributed; any profit distribution specified in the LLC Operating Agreement is acceptable.

Wyoming Nonprofit Corporation

A Wyoming nonprofit corporation is formed by filing the nonprofit version of the Articles of Incorporation with the Secretary of State. There will be no shares of stock, as a nonprofit corporation does not sell shares to gain capital.

Many Wyoming nonprofit corporations formed for accepted business purposes go on to apply for 501c3 status from the IRS; it is important that you familiarize yourself with IRS requirements if this is your plan, as state requirements for forming a Wyoming nonprofit corporation are not designed to meet IRS requirements, and you may need to add additional provisions to your Articles of Incorporation before filing. Alternatively, you could amend your Articles later, but this will cause a delay in your ability to operate as a tax-exempt corporation.