Incorporating in Wyoming is a very smart idea for business owners. Not only does the “Equality state” lack personal income tax, inventory tax, corporate income tax, and franchise tax, but the western state also lacks burdensome regulations, excise tax, and steep sales and property taxes. In fact, sales and property taxes are at the low end, compared to most other states.
It is quite common for many of today’s business owners to debate whether to form a business in Wyoming, Delaware, or Nevada. Keep in mind that while the state of Delaware is preferable for most large corporations, smaller businesses often encounter expensive and burdensome fees, as well as numerous administrative regulations in Delaware.
At the same time, Nevada corporations are subject to high taxes and face costly fees. As a result, many business owners end up incorporating in Wyoming. Below, we examine some of the advantages of incorporating in Wyoming:
Wyoming has the fourth-highest number of new entrepreneurs in the country. This means that the state offers a healthy, prosperous community for business owners to join, as well as a huge opportunity to share valuable information and many chances to find both business partners and mentors.
Of all the 50 U.S. states, Wyoming has one of the best records of business survival with a ratio of 1:61. Given how difficult it can be for today’s startups to survive, this makes the state quite attractive for new business owners and investors, due to the high quality of life.
Wyoming offers affordable filing fees. In fact, the state’s filing fees are based on the value of corporate assets located within the state. The Wyoming Secretary of State charges a $100 fee to file the Articles of Organization by mail and $102 to file online. You can reserve your business name by filing an LLC name reservation for $50. Wyoming LLCs are also required to file an annual report license tax, which is a minimum of $50.
The state offers no stock limits. While most states set a limit on shares that can be issued, Wyoming does not. Moreover, business owners in the state can issue as many shares as they want by making the proper entries in the Articles of Incorporation. This is especially important for business leaders who are interested in taking their organizations public.
Wyoming offers flexibility and control. It is common for states to require organizations to appoint more than one individual to serve as officers and directors. However, this rule does not apply to Wyoming corporations. In fact, one person is allowed to fill every corporate position in an organization if business leaders choose to do so.
Privacy rights for shareholders are an important benefit. The state does not mandate the disclosure of shareholders. In fact, the state of Wyoming does not require corporations to make the names of any shareholders public record. Consequently, organizations can keep this information private, which tends to reduce the risk of becoming a lawsuit target.
There is no responsibility for debts. According to laws in Wyoming, officers and directors can’t be held responsible for a corporation’s debts as long as business owners do not intentionally break the law. Simply put, business leaders will be protected from all claims brought against an organization.
Wyoming allows you to retain your corporation’s longevity. In Wyoming, business owners have the ability to turn an existing organization into a Wyoming corporation. In addition, the existing organization can also retain its original incorporation date after becoming a Wyoming corporation.
According to the Tax Foundation’s State Business Tax Climate Index, Wyoming ranks at the very top of the index, ranking number one out of 50. In addition, according to Forbes Magazine, the cost of doing business in the state of Wyoming is about 1 percent below the national average, which makes it an easy state for new businesses to grow and flourish.
There is no question that Wyoming is an extremely business-friendly state with very little red tape and restrictions. Wyoming offers the most business-friendly tax climate in the United States, a pro-business attitude, and wide-open spaces full of adventure and outdoor activities. With a skilled workforce and industry incentives, incorporating in the state is a win-win for today’s smart and savvy business owners.
The bottom line is that forming a professional LLC or corporation in Wyoming is an exciting opportunity, but starting any business can feel daunting and overwhelming. Why not let the business experts at NCHdo all the heavy lifting for you?
When you’re ready to launch your business, our team of business consultants will help you go from business idea to open for business. Call us at 800-508-1729!