The USA is becoming an increasingly popular destination in terms of business registration and immigration. In this regard, we are offering a new service specially designed for those who wish to register a company in the state of Wyoming: free initial consultation on corporate taxation and accounting.
Mind that the consultation is provided in English. Before we start, please answer a few questions that will help our specialists to better understand the peculiarities of your situation.
Corporate Taxation and Accounting for Company Registration in Wyoming
Why is Wyoming a Number One State for Business?
Among all US states, Wyoming offers the most liberal conditions for entrepreneurship — primarily due to its tax structure. The state does not charge income tax (either individual or corporate), and it imposes minimum sales and excise taxes. It is no wonder Wyoming is one of the leaders by the number of registered companies in the USA.
Wyoming has a population of less than 1 million. At the same time, about 3 million tourists arrive here every year to visit the famous Yellowstone National Park.
Rich natural resources (oil, gas, coal, as well as uranium) are the main drivers of the state’s economy. Wyoming produces 38% of all coal in the United States, and virtually all of the trona (Egyptian salt) – a mineral used to make glass, pharmaceuticals, and baking soda.
The largest city in Wyoming, Cheyenne, is gradually diversifying its economy based on the growing service industry. Particular attention is paid to retail, hospitality, the financial sector, and healthcare.
Wyoming is ranked high by the Tax Foundation: best business climate in the US for the sixth year in a row, first in corporate or individual income tax categories, and sixth place in the state’s sales tax rate category.
We will list just a few other features that make Wyoming a great place for your business:
- The state has one of the strongest asset protection laws in the nation: creditors will be unable to force sale of assets.
- Limited liability protection: business owners are not responsible for any business debts or liabilities.
- High privacy: information on business owners, managers or members is not required to be listed on the state’s public database.
- No minimum capital requirements: you can form your business with $1.
- Easy transfer of ownership: you can do so by the sale of stock, and it will not affect the current operations.
- Best records of business survival of all the fifty states.
At this point, you may wish to stop reading and register a company in Wyoming right now. Before you do, please book our free consultation on taxation and accounting to make sure you know everything!
Why is it Profitable to Register a Company in Wyoming?
The main advantage of incorporating a company in Wyoming is the possibility to optimize taxation. Wyoming offers a number of tax advantages:
- no corporate taxes
- no personal income tax
- no tax on inheritance and real estate
- pension income received in another state is not subject to taxation
- no excise taxes
- intangible assets (such as shares and bonds) are not taxable
Companies whose business is related to the sale of goods and services in Wyoming must apply for registration with the Revenue Department. The tax rate on sales revenues is 4% plus 1-2%, depending on the municipality.
Companies incorporated in Wyoming are subject to real estate tax, but the rate is significantly lower than in other states. Residential and commercial real estate is subject to taxation at the rate of 9.5%, while industrial real estate is taxed at 11.5%.
During the consultation, you will learn more about Wyoming’s corporate tax system and how to make the most of it.
How Can a Non-U.S. Resident Set Up a Company in Wyoming?
For a non-US resident, the Wyoming business process consists of the following steps:
- Choose an organizational structure — a corporation (Wyoming corporation) or an LLC.
- Select a name for your business (with an entity identifier – LLC or Corp.). Make sure there is no registered business in Wyoming with the name you selected.
- Hire a registered agent. This is a mandatory requirement for non-residents that intend to incorporate a company in Wyoming. If necessary, the registered agent can be changed by appointing a new one and sending an application to the Wyoming Secretary of State.
- Execute all documents required for company establishment.
- Get a license if you need to.
- Obtain an application approval from the Wyoming Secretary of State.
- Register with the State Revenue Service.
If the company intends to carry out its business activities in the United States or employ U.S. citizens, you will also need to obtain a Federal Employer Identification Number by submitting an application to the IRS. In addition, the company will need to open an account with the bank.
Requirements for a Wyoming Corporation
All requirements prescribed by state law must be met if you want your Wyoming corporation to be successful.
Corporate Records of Companies Registered in Wyoming
Corporations shall keep the following information with the registered agent:
- name, address and phone number of the person authorized to receive messages from the registered agent
- the names and addresses of the current directors and officers
In addition, Wyoming corporations must keep the following information at their headquarters:
- Articles of Association and any amendments thereto
- Corporate internal regulations or restated by-laws and any amendments thereto
- Resolutions adopted by the directors on the formation of one or more classes or series of shares that stipulate their relative rights, preferences, and restrictions
- Minutes of shareholders’ meetings for the last three years
- Reports on actions taken by shareholders without a meeting in the last three years
- Written communications to shareholders, including financial statements, for the last three years
- List of names and business addresses of current directors and officers
- Latest Annual Report
Taxes and Fees for Companies Registered in Wyoming
In the area of taxes and fees, Wyoming corporations are subject to the following requirements:
- Filing an annual report (on or before the first day of the corporation’s anniversary month) and paying an annual fee of $52 or $0.0002 per each dollar of company assets in Wyoming (whichever is greater)
- Tax payments
- For companies that hire employees — Federal Employer Identification Number (EIN)
Wyoming does not require a separate tax identification number from the state. Please note that certain business activities may require a license or special permit.
Annual Report for a Company Incorporated in Wyoming
The submission of the annual report is an important component of the company’s activities in Wyoming. You need to submit a report annually, on the first day of the anniversary month of the company’s establishment — for example, if the company was established on January 12, the report should be submitted on or before January 1.
An annual fee is also payable. If the amount of assets does not exceed $250,000, the amount of fee will be $52; if it exceeds the specified sum, $0.0002 per each dollar is payable.
The annual report can be completed on the official website of the Wyoming Secretary of State. You will have to indicate the ID number of the company issued during registration and confirm the relevance of the specified information.
The report must be signed by an authorized person (if the report is submitted online, an electronic signature may be used). An important point is that there is no requirement for the company beneficiary to be the only person who can sign the report. This may be done by any person authorized to sign this document on behalf of the company. In this way, the company’s beneficiaries can maintain their confidentiality.
Upon report completion, you will have to pay the annual fee. If the company has not submitted an annual report, the secretariat may cancel its registration within 60 days.
How do I Properly Wind Down a Company in Wyoming?
If you make a decision to terminate your company in Wyoming, it is very important to liquidate it correctly. If the company is terminated by the secretariat due to a failure to submit an annual report, serious difficulties may arise in the future if you wish to return to business in Wyoming.
The Wyoming company termination procedure consists of the following steps:
Complete the Articles of Dissolution form and pay a $50 fee.
Take measures to terminate the company’s activities: settle the disputes, discharge all debts and liabilities, distribute assets, shut down bank accounts, etc.
Obtain approval from the state (usually within one week).
Advantages of Wyoming Compared to the Other US States
It is no secret that some states have earned a good reputation and popularity among those who want to start a business in the United States. These are, first of all, Delaware and Nevada. However, despite the fact that Wyoming is not as widely known, it has for several decades provided favorable legislative and tax conditions for business, ensuring its security and prosperity.
Wyoming is in many ways a better place to do business than Delaware or Nevada.
Comparison of states in terms of doing business
|You pay corporate income tax||No corporate income tax|
|Income tax payable by the population||No income tax payable by the population|
|There is a franchise tax||No franchise tax|
|Large annual fees ($300 to $175,000)||Small fees (from $52, depending on the size of the assets)|
|Large fees for filing and updating documents||Minimum fees for filing and updating documents|
|Reporting requirements||No share certificates required|
|Regulatory rules that may lead to information disclosure||No fees for business licenses|
|Expensive legal services||Adequate legal fees|
|The corporation’s contributions account for nearly one-third of the state budget|
Nevada is a much more expensive state to do business in than Wyoming. In addition to similar fees and charges, there are additional costs to be paid both in Wyoming and Nevada:
- Submission of the initial list of officers — $150. This report is then filed annually, and the amount of fees depends on the value of the corporation’s authorized shares.
- The annual fee for a business license is $200 for an LLC and $500 for a corporation.
- As in Delaware, the amount of annual fees for corporations depends on the value of authorized shares and may amount to several thousand US dollars.
Using a Company in Wyoming to Protect Assets
Complex offshore schemes and strategies, multi-level structures and trusts are not always the optimal solution for asset protection. Typically, the maintenance of such complex structures requires considerable resources and effort. Not everyone is ready to support them for a long time. At the same time, the establishment of an ordinary LLC in Wyoming can greatly help to close the issue of asset protection.
An LLC in Wyoming is the simplest and most efficient structure to protect assets and minimize liabilities. There is no need for a lawyer to manage an LLC, and company establishment and maintenance will not be too expensive.
An LLC may be used not only to conduct business but also to own property or carry out investment activities. In this case, an LLC will become a reliable shield against possible loss of assets in the event of, for example, data theft or creditor claims.
You may also want to read an article on Incorporation of an LLC in Nevada (USA)
We also remind you of the need to diversify risks rather than store all assets in one place. Even a reliable LLC in Wyoming will not be able to protect against all types of risks (for example, political ones). It is wise to divide assets into several parts and use instruments in different parts of the world. We can also help in this matter as we have a large network of our own experts and attracted partners in dozens of countries.
Why Should I Book a Free Consultation on Corporate Tax and Accounting in Wyoming?
The state of Wyoming has many advantages and attractive features for businessmen from any country. The establishment of a company in Wyoming implies:
- low registration costs
- laws to protect assets
- no need for nominees
- data on the manager and members of the board are not mentioned in public documents
- less attention to staff
- spotless reputation
- no income tax
In this regard, the number of people wishing to register a company in the state of Wyoming is on a constant increase. However, the incorporation of a foreign company is a complex process with many details, especially if we are talking about the United States. Moreover, most of the nuances appear AFTER the company registration.Use our free consultation on corporate tax and accounting in Wyoming to determine for what purposes a company in Wyoming can be used, what requirements you will have to meet, and what initial difficulties may be encountered. To take advantage of this opportunity, please contact our specialists at email@example.com