Why Choose a Wyoming LLC?  

Trusted, agile and cheap. Welcome to the state of Wyoming – perfect for limited liability, digital assets and serious flexibility.

Of all the decisions you make when starting a new business, choosing the right legal structure in the most suitable jurisdiction is one of the most important ones. This will impact how you pay taxes, your personal liability and your ability to raise money. 

In this post we’ll explore why Wyoming may just be the right jurisdiction for you. 

Whether you are a solo entrepreneur or an established corporate group, look no further. 

You are at the right place. 

WYOMING COMPANY IN A NUTSHELL  Only one shareholder and director to start a Wyoming company. This can be the same person.  No requirements for a local, resident director.  Flexible with limited liability: offers legal protection while light-weight in annual reporting.  0% corporate state tax on foreign sourced income. This means all business income that is NOT generated within the borders of the state of Wyoming are foreign profit.  No minimum paid-up capital required.

 

Here’s why Wyoming is a cool option 

Wyoming, United States – this place is packed for reasons why you should at least consider starting a Wyoming company. Regardless of what business you’re in, the state of Wyoming offers a flexible entity model that limits your personal liability, allows you to choose your own legal tax frame within the U.S and allows for anonymous ownership. 

Needless to say, online businesses such as e-commerce and marketplaces, property investors, holding companies and creatives have been gravitating towards this model for years. And now lately, with the impressive amount of blockchain-friendly legislation being passed, Wyoming is setting the stage for a future of tech companies, fintech and development of digital assets. 

 

Wyoming Limited Liability Company 

Limited Liability Company, or better known as the LLC. When we say ‘Wyoming Company’ in this article, we’re legally referring to Wyoming LLC. As the first U.S state to pass this entity type, Wyoming LLC is combines limited liability of a corporation with a pass-through federal taxation together with the agility of a partnership. 

Not a resident? Not a problem. Many Wyoming LLC owners aren’t. This is a popular entity type as it’s fast and cheap to form. Assuming you have no business income in the U.S, there is no corporate tax or tax returns to file. Therefore, this is an entity type that offers a versatile structure that suits all types of industries with light bureaucracy and high level of confidentiality. 

 

Protective yet flexible legal structure 

It’s called a limited liability company for a reason. Designed to separate individual activity from commercial operations, Wyoming companies benefit their owners by adding a layer of legal protection while not burying individuals under red tape. 

As a founder of a Wyoming company, you determine how things are run. Anything from choosing whether or not you want to reside in the state, whether you operate solo or run an entire group (called LLC series) or how much information you are comfortable disclosing… and our favorite – whether you’d like to be taxed as a corporation, partnership or sole proprietorship.

 

Choose your own tax 

Yes, Wyoming companies allow you to be taxed as a partnership, corporation or sole proprietorship. This is one of the main reasons that keep this company type popular amongst others. Because regardless of what you choose, you’ll still maintain the advantages of limited liability. If you choose to be taxed as a partnership or sole proprietorship, you are not taxed at the entity level, but rather as your personal tax rate. 

General rule is this: you pay 0% tax from all corporate income sourced outside the borders of Wyoming. In other words, as long as your business income doesn’t come from within the state, you’re exempt from state tax. Additionally, Wyoming does not collect franchise tax, personal state income tax or inventory tax. 

However, this doesn’t mean you’re necessarily free from federal tax. All American citizens are subject to federal and worldwide taxing, for instance. So make sure to do your homework on this, or learn more about how we can help. 

 

Privacy and confidentiality

Wyoming scores high on its privacy laws. The only thing that is required by the Secretary of State is the Articles of Organization. No other information will be mandatory or appear in the public databases.

However, if anonymity is important to you, nominee services are available. In this case, only the name of the ‘organizer’ therefore the registering agent will be displayed in the Articles of Organization. Your name would not be disclosed in the company formation documents. 

 

Blockchain-friendly and fintech sandbox

This is worth a mention of its own. As a regulatory environment, you’re not going to find a blockchain-friendlier jurisdiction than Wyoming. Having passed 13 blockchain-enabling bills to date, this state is under transformation onto something often referred to as the ‘Delaware of digital assets’. 

If this is your game, a few things worth keeping your eyes on regarding this jurisdiction: 

• Fintech sandbox – regulatory relief up to 3 years 
• Direct custody over digital assets – effective from summer 2019 
• Banking for blockchain companies – estimated release 2020 

We are pretty deep in this space ourselves – for instance, if you incorporate through our model, you won’t need any of those bills, you’ll have them already as our entity type is legally a Wyoming LLC. To learn more about this, don’t hesitate to talk to us directly at future@korporatio.com

Requirements to open a Wyoming Company

Have questions? Here are the mandatory requirements to start your Wyoming company – and how we can help. 

What will I need to get started?	We will need your company name, some basic information (amount of shares, the kind of business you’re planning) and shareholder/director information. Proof of address and passport copy will be also required to complete the first step. We will then take care of the rest.
How many shareholders and directors do I need?	One shareholder, one director. They can both be the same person, so you as a solo founder is enough.
Annual meetings?	Not mandatory.
Mandatory annual reporting?	There are 2 reports as Wyoming operates both under its state law as well as the federal law of the United States:1) State: Annual report. To be filed every year on the first day of the anniversary month of the LLC formation. Example: if your Wyoming LLC is formed August 15, then your filing is due August 1st the following year. 2) Federal: Annual report on federal tax.Please note: late filings and payments may result if your annual report is late from the due date. Your state annual report is already incl. in the price if you are our client. Federal reporting is case by case.
Do I need an operating agreement?	Not mandatory. Although highly recommended if more than one member within your entity. The State of Wyoming recognizes LLC Operating Agreements as governing documents.
What’s the corporate tax rate?	Zero tax. This is for all business income generated outside the state of Wyoming. However, if there is business income coming within the borders of the United States, Federal Tax may apply. LLCs profit and losses are considered personal income. Please note: LLCs in Wyoming need to pay a license tax based on all the assets the LLC may have and employ in the state. LLCs with $250,000 or less in assets are required to pay a minimum license tax of $50 (which is sometimes interpreted as the ‘annual report fee’).
Will I need to obtain an Employer Identification Number (EIN)?	Depends on your activities. The easiest way to think of this is to understand it as your social security number. This is a unique number tied to your Wyoming LLC which will be required if you’re opening a bank account, generating revenue, employing people or engaged in any taxable activity. However, if you are the only member of your company and do not intend to generate any income, then EIN is not required.
How much paid-up capital do I need?	No minimum paid-up capital. LCC Members’ liability equals whatever amount they put into the company.
Disclosure of information?	The Articles of Organization is required by the Secretary of State. If privacy is important to you, please note that we can also help with having the agent name as the organizer in the Articles of Organization. Your name would not appear on formation documents. You as a client are protected by attorney-client-privilege. To learn more about this, please contact us directly at future@korporatio.com.
Do I need a company address?	Yes. And it’s automatically incl. in the incorporation package we offer.
How do I open a bank account?	We will assist you in opening a multi-currency e-bank account free of charge.For a physical bank account, please note that any bank operating in the US can open a Wyoming bank account. You don’t need a physical location in Wyoming. We can assist in making the introduction and referral to our network banks.
What is the process of incorporation?	Three steps: 1. Submit your order. 2. Provide company information. 3. Your company is created.
Any mandatory annual payments?	State Annual Report: if your company owns assets worth of USD250,000 or less, the license tax of the state is US$50. This is a progressive fee that increases with your assets up to US$500. We cover our clients fees in our package up to assets owned worth of US$250,000.
What else do I need to start a company?	Here is a list of everything mandatory you need to have. We’ve included all of this into our incorporation already: Name application Certificate of incorporation Memorandum and Articles Assignment of Founders Rights and obligations First board of councillors minutes Register of councillors, beneficiaries, founders and registered agents Registered agent services Business Address in the respective location of the jurisdiction Money Laundering (AML) – Know Your Customer (KYC) – Political Exposed Person (PEP) check and approval Digital mail forwarding Drafting of minutes and assistance with other ancillary documents Smart Company Deployment, establishment + Digital Dashboard Customized Corporate ERC-20 Token Customized Digital Voting System Assist in opening multi-currency cross-border Bank Account
How long will this take?	Within 24 hours.

Have more questions?
No worries. Drop us a note at future@korporatio.com or start a conversation here – we are always here to help!