Capital:
CheyenneForm of government:
Federal StateArea:
253 348 km2Population:
576 thousandCurrency:
dollarWhy Wyoming: Benefits of Incorporating a Company in the State
State of Wyoming , known as a business-friendly region in the United States, offers exceptional conditions for doing business. First of all, Wyoming is noted for its low tax burden: there is no corporate tax, personal income tax, or franchise tax. This allows entrepreneurs to focus on developing their business, minimizing expenses associated with tax liabilities.
Another advantage is the simplicity of the regulatory framework. Wyoming is known for its flexibility in managing companies. For example, there are no mandatory requirements for holding an annual meeting of shareholders, and there are no restrictions on the number of participants in the company, which allows the business structure to be adapted to the individual needs of the owners.
Legal Forms for Non-Residents in Wyoming
Non-residents have the opportunity to register a company in various legal forms. The most popular of them are:
- LLC (Limited Liability Company) – Limited Liability Company, providing management flexibility, a high level of confidentiality and dismissal from corporate taxation, provided that the profits are not made in the United States.
- Corporation (C-Corp or S -Corp) – A traditional form of corporation that is suitable for large companies that plan to attract investors or issue shares.
- Partnership (GP, LP, LLP) – Partnerships suitable for joint activities of several individuals or companies who want to avoid a complex management structure.
Step-by-step actions for registering a company
- Determine the legal form
Select the type of company that suits your business goals (for example, LLC or Corporation). - Register your company name
Check the availability of your desired name in the registry Wyoming and book it. - Assign a registered agent
The state is required to have a local registered agent who will receive official documents. - Prepare the incorporation documents
- File documents with the Secretary of State
- Get an EIN (Employer Identification Number)
This number is needed to open a bank account and file taxes. - Open a bank account
Open a corporate account in a US bank to conduct financial activities. - Ensure local compliance
Check for additional licenses depending on your activities.
Features of Wyoming Taxation
Wyoming’s tax system is one of the most attractive in the US. The state does not levy corporate tax or personal income tax. However, companies must pay an annual registration support fee, the amount of which depends on the value of the company’s assets in the state. For non-residents, an important aspect is the avoidance of double taxation. In most cases, non-resident LLC owners who do not receive income in the United States are exempt from federal tax. At the same time, it is necessary to take into account tax treaties between the United States and your country. Let’s consider the taxation features of LLC (Limited Liability Company) and C-Corporation companies owned by non-US residents at the Wyoming state and federal levels.
- LLC (Limited Liability Company)
At the Wyoming state level:
- Corporate Income Tax: Wyoming does not impose a corporate income tax, which is one of the main benefits of incorporating an LLC in this state.
- Sales and Use Tax: If an LLC sells goods or services within the state, it must register for sales tax and pay it if required by law.
- Annual Report and Royalty Fee: An LLC is required to file an annual report and pay a royalty fee based on the total value of the company’s assets located in the state. The minimum payment is $50.
At the Federal Level:
- Transparency for Tax Purposes: By default, a single-member LLC is considered a “disregarded entity,” meaning its profit or loss is reported directly on the owner’s tax return. If the owner is a nonresident, federal tax is levied only on U.S.-sourced income (such as income from U.S. real estate).
- Choice of Taxation: An LLC may elect to be taxed as a C-Corporation, which changes the nature of its tax liability.
- C-Corporation
At the Wyoming State Level:
- Corporate Income Tax: Like an LLC, Wyoming does not have a corporate income tax.
- Sales and Use Tax: A business pays sales tax when it sells goods or services that are subject to tax.
- Annual Report and License Fee: A corporation is required to file an annual report and pay an annual license fee (minimum $50).
At the Federal Level:
- Corporate Income Tax
At the Federal Level … Corporations: A C-Corporation is subject to taxation at the corporate level at a flat rate of 21%.
- Dividend Tax: If a C-Corporation distributes profits to its shareholders in the form of dividends, non-US residents are subject to a dividend tax of 15%. The rate is reduced because there is a double taxation treaty between the US and Ukraine (the shareholder’s country of residence).
Wyoming is an ideal choice for forming an LLC or C-Corporation due to its low state tax liability. LLC is suitable for small and medium-sized businesses that seek to minimize administrative costs, while C-Corporation is better chosen to attract investors and large-scale business.
Doing Business in Wyoming: What to Know
Wyoming provides entrepreneurs with exceptional opportunities for effective business management. All conditions for remote management have been created here: registration, reporting and payment of fees are carried out online. A flexible regulatory framework allows you to set up business processes without the need to be in the state.
The state also provides a favorable environment for innovative business. Wyoming is the first state in the US to legalize DAO (Decentralized Autonomous Organization) registration, opening up new opportunities for technology startups.
Registering a company in Wyoming is an investment in stability, privacy, and low operating costs, allowing businesses to grow in comfortable conditions.