The Wyoming LLC pros and cons that you can find online are often misleading and biased. This is because service providers typically promote LLCs from their states and criticize LLCs from other states.
In this article, we’re going to share an unbiased view of Wyoming LLCs. This will include detailed pros and cons, information on how to register, and a few important banking considerations that often go overlooked.
This article is part of our free series on forming US LLCs, including the steps for opening a business bank account for an LLC, which you can access here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Wyoming LLC Pros and Cons
- How to Register an LLC in Wyoming?
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
Wyoming LLC Pros and Cons
Wyoming LLC pros and cons include advantages like privacy, asset protection, no franchise tax, no state income tax, low formation cost, minimal annual reporting, option to form a Series LLC, and no legal requirement for an operating agreement.
In terms of disadvantages, Wyoming asset protection only applies to in-state LLCs and if you are non-resident you must hire a registered agent for your Limited Liability Company. In short, Wyoming is a very friendly business environment.
Wherever you choose to register an LLC, it’s important to understand financial risk management, what an account-level reserve is, and how it can impact your business. This is especially true if you sell products through Amazon. You can learn more about these financial risks at the link above.
For now, here is a closer look at the specific pros and cons you can expect if you choose to form a Limited Liability Company in Wyoming.
Wyoming LLC Pros
The pros of registering an LLC in Wyoming include:
- Minimal LLC registration and maintenance fees
- Information about the members can be kept confidential
- No income tax for out-of-state activities
Wyoming LLC Cons
The cons of registering an LLC in Wyoming include:
- Asset protection only applies to resident Wyoming LLCs
- If you forget to pay annual fees, it is extremely difficult to rectify
- Bankers and service providers are less familiar with Wyoming LLCs
It’s important to note that registering an LLC in Wyoming is not a suitable option for everyone. There are other considerations, including forming an LLC in Delaware and tapping into the Delaware LLC benefits, which you can learn more about by accessing our free guide linked here.
If this is your first time visiting GlobalBanks, don’t forget to download your FREE US Banking Starter Guide. It’s designed to help non-residents with opening bank accounts at top financial institutions in the US.
How to Register an LLC in Wyoming?
To register an LLC in Wyoming, you will need to complete the official registration process with the Wyoming Secretary of State. If you are a non-resident of Wyoming, you will be required to appoint a local registered agent.
After a local agent is appointed, the registration process involves filing articles of organization with the state and paying the necessary filing fee. On an ongoing basis, your Wyoming LLC will also need to file an annual report and pay an annual fee.
Here is a closer look at the required steps to register an LLC in Wyoming for a non-resident.
Requirements for Registering an LLC in Wyoming
- Appoint a Wyoming registered agent
- File Articles of Organization for the LLC with the Wyoming Secretary of State
- Pay the associated filing fee at the time of filing the Articles of Organization
- Obtain an Employment Identification Number for your Wyoming LLC
- File an annual report and pay an annual fee on an ongoing basis
- Meet any related federal filing requirements from the IRS
Of course, before you file your Articles of Organization, you will need to choose a name for the LLC. Your registered agent can assist you with this process.
Who Can Register an LLC in Wyoming?
An LLC in Wyoming can be registered by any individual that is 18 years or older or any legal entity from a competent jurisdiction. In other words, any person or entity is eligible to form a Wyoming LLC.
Importantly, Wyoming LLCs can be registered by Wyoming residents, residents of other US states, and non-US residents, including foreign individuals and entities that have no other ties to the United States.
Wyoming LLCs are frequently used by foreign non-resident individuals who want a low-cost LLC in the United States, especially those who want the added privacy that comes from registering in Wyoming.
Frequently Asked Questions
Below are four of the most common questions we receive from people looking into Wyoming LLC’s pros and cons. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
What Is the Disadvantage of an LLC in Wyoming?
There are very few disadvantages of registering an LLC in Wyoming that do not also impact LLCs registered in other states. For example, US LLCs tend to struggle with opening bank accounts outside of the United States. Additionally, there is an annual reporting requirement for foreign-owned US LLCs that other international structures do not have. Lastly, depending on where you want to open a bank account for your LLC, it’s possible that certain bankers may be less familiar with a Wyoming LLC than they are with more common states, like Delaware.
Why Do People Set Up an LLC in Wyoming?
People set up an LLC in Wyoming to take advantage of the many benefits that Wyoming has to offer compared to other US states. In addition to the general benefits offered by setting up an LLC, Wyoming offers enhanced privacy and lower maintenance costs. This makes the Wyoming LLC an ideal choice for anyone concerned with maintaining a level of privacy and keeping the costs of maintaining the LLC low.
What Is the Benefit of Having a Wyoming LLC?
The main benefit of having a Wyoming LLC is that it offers asset protection, enhanced privacy, and tax advantages. With this in mind, it’s no surprise that Wyoming LLCs are one of the most popular US structuring options for both US citizens and foreign non-residents in need of an LLC within the United States.
Does an LLC Pay Taxes in Wyoming?
Wyoming LLCs do not charge state income tax. However, as a passthrough entity, the income attributed to the LLC is still reportable to and taxable by the Internal Revenue Service on behalf of the member or members of the LLC.
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In fact, GlobalBanks USA even helps non-resident US LLCs and foreign & offshore entities.
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