Incorporating in Wyoming is a smart move for business owners. Not only does the “Equality State” lack personal income, inventory, corporate, and franchise tax, but the western state also lacks burdensome regulations. And even though Wyoming has sales and property taxes, their rates are much lower than other states.
These benefits make Wyoming one of the country’s most popular pro-business states, alongside Delaware and Nevada. But since Delaware and Nevada’s fees are more appropriate for larger companies, smaller businesses prefer to stay in Wyoming instead.
If you’re still wondering whether Wyoming is the right state for you, we’re here to help. This blog will discuss what makes Wyoming the perfect home for new entrepreneurs.
If you’re relatively new to running a business, Wyoming’s productive community is perfect for you. The state has the fourth-highest number of new entrepreneurs in the country. It offers you a huge opportunity to share valuable information and find business partners or mentors.
By forming a business in Wyoming, you can rest easy knowing that you have people around you to help you run and expand your business.
High Business Survival Rate
Most startups in the country need help to survive in today’s market. With high inflation rates and tight competition, new businesses need an environment that will help them thrive. Luckily, Wyoming has them.
Wyoming has one of the best records of business survival of all the 50 U.S. states, with a ratio of 1:61. Startups will have a much higher chance of lasting if incorporated in Wyoming.
Affordable Filing Fees
Wyoming offers affordable filing fees as well. The prices are based on the value of corporate assets located within the state.
The Secretary of State’s filing fee for Articles of Organization ranges from $100 to $102. You can also reserve your name and file your annual report business license tax for only $50.
These fees are perfect if you’re planning to create your LLC with a limited budget. You can use all of the resources you’ve saved to expand and grow your business.
No Stock Limits
While most states set a limit on shares that businesses can issue, Wyoming does not. You can have unlimited stock issuance and classify them however you want to. If you want to classify your shares as common or preferred, Wyoming allows you to do so.
Additionally, you can issue your stock in exchange for anything valuable. Suppose you want to invest in a new property for your business. In that case, you can use your company’s shares in exchange for a brand-new office.
Lastly, Wyoming allows you to issue a no-par value for shares of stock, enabling you to change its value at a later date.
Fewer Corporate Formalities
Another excellent benefit that Wyoming offers is fewer corporate formalities. The state doesn’t require you to have different officers and directors. You can be your company’s officer and director at the same time.
But it’s worth noting that this rule doesn’t apply to corporations. If you decide to turn your company into a corporation, you should have separate officers and directors.
Strong Privacy Protection
If privacy matters to you and your shareholders, Wyoming is the perfect state to do your business. The state doesn’t require organizations to disclose the names of their shareholders.
You can also protect yourself from lawsuits by not including your name in public records.
Limited Liability Protection
Aside from prioritizing your privacy, Wyoming also has regulations that protect you from liabilities. According to state law, officers and directors will not be held liable for a company’s debts. If you don’t intentionally break any laws, you will be shielded from any claims made against your business.
Quick & Easy Transfer
Business owners can turn an existing organization into a Wyoming corporation in the state. The existing organization can also retain its original incorporation date after becoming a Wyoming corporation.
This makes it easier for people running their businesses in other states to move into Wyoming. You can use your existing EID and the original formation date of your company if you decide to move to Wyoming.
The Forbes Magazine also mentioned that the cost of doing business in Wyoming is about 1 percent below the national average. Startups can easily survive and grow thanks to their low business costs.
There is no question that Wyoming is an extremely business-friendly state with very little red tape and restrictions. The state offers the most business-friendly tax climate in the United States and has an excellent pro-business attitude. 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 business formation can feel daunting and overwhelming. Why not let the business experts at NCH do 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 ideas to opening for business. Call us at 800-508-1729!