There are several requirements to forming a new corporation in Wyoming. Compared to other states, WY has many advantages for companies. For example, the Cowboy State has no franchise tax fee, and no annual fee based on issued company shares. Additionally, they also waive a number of paperwork requirements for businesses compared to other states. Wyoming corporations are not required to document shareholder ledgers or corporate bylaws. Prospective business owners wishing to take advantage of Wyoming’s business framework need to understand the laws. Here are most important requirements for incorporating new businesses in Wyoming.
Register A Name
The first requirement for incorporation in Wyoming is that a business must register a name with the Secretary of State. A corporation’s name can be anything that the business owner wants, within certain limitations. For example, Wyoming does not allow a businesses’ name to state or imply a different good or service than it actually offers. Additionally, Wyoming requires separate approval from the state Department of Education for any business using words like “Academy” or “University”. The registered name may be different from the day-to-day name used by the business, as long as both meet the State’s law requirements. New business owners can search through a database of existing business names to make sure their name is not currently in use.
Choose A Type Of Corporation
In order to incorporate, prospective business owners must choose a type of corporation. Wyoming allows sole proprietorship, general partnerships, and limited liability corporations (LLCs) to be formed. A sole proprietorship is a business that is owned by a single person, but it may be operated by many employees. A general partnership is a business arrangement where two or more initial investors have control over a business. An LLC is similar to a partnership, however in an LLC business investors are not liable for any debts the business incurs. Additionally, you can consider an S-Corp or C-Corp startup. You should decide on a type of corporation that best suits your needs.
Appoint A Registered Agent
Incorporation in Wyoming requires the appointment of a registered agent that has a valid address in Wyoming. The registered agent must be available during normal business hours to receive legal and tax documentation. These agents can also handle this documentation on behalf of businesses depending on the agent. New business owners can choose to name themselves as the registered agent, but this requires a physical address in the Cowboy State. Obtaining a registered agent is a key step in forming a new corporation in Wyoming.
Obtain An Address In Wyoming
In order to form a corporation in Wyoming, new business owners must obtain an address in the state. Forming a company with multiple locations requires the business owner to choose one address as the official location. An official address does not have to be a physical location. Business owners can choose a post office box or similar. These virtual addresses require corporations to have a separate registered agent to receive tax documentation, however. Prospective business owners should carefully consider their address options in Wyoming.
File Articles Of Incorporation
After a prospective business owner has finished preparing their new corporation they must submit the articles of incorporation to the Secretary of State. There is a one time filing fee for submission. The articles of incorporation include the name, official address, registered agent, and incorporation type. During this phase, business owners may also be required to file for a business license with the local municipality. Once the Secretary of State approves the articles of incorporation, a business can begin legally operating. Filing the paperwork correctly allows new business owners to start their corporations on the right foot.
Incorporating a business in Wyoming has a lot to offer new business owners if they meet the requirements. First, they have to register a name that complies with all relevant naming regulations. Next, business owners must decide on a sole proprietorship, a general partnership agreement, or an LLC. A registered agent must be contracted with to handle official paperwork. Businesses then must obtain a physical or virtual address in Wyoming. Finally, a prospective business owner must submit the articles of incorporation and pay the required fee. Abiding by these requirements allows prospective business owners to incorporate a new business in Wyoming legally.