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Making Sense of Wyoming LLCs

Adam Blaier, Esq. 0 Comment
paper-with-llc-on-chart-with-calculator-pen-and-magnifier

Forming a limited liability company is one of the most important foundational decisions a business owner makes. While many entrepreneurs default to forming an LLC in their home state, Wyoming LLCs have gained national popularity due to their tax treatment, privacy protections, and low administrative burden.

That popularity, however, has also led to misuse and misunderstanding. A Wyoming LLC can be an excellent tool in the right circumstances, but it is not a one-size-fits-all solution. Below, we break down what Wyoming LLCs offer, why they are attractive, and when they may not be the right choice.

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FAQ

FAQs about Wyoming LLCs

Adam Blaier, Esq. 0 Comment
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Frequently Asked Questions About Wyoming LLCs

What is a Wyoming LLC?

A Wyoming LLC is a limited liability company formed under the laws of Wyoming. Like LLCs in other states, a Wyoming LLC is a flexible business structure that combines liability protection with pass-through taxation, but Wyoming’s statutory framework offers additional tax and privacy benefits that many business owners find attractive.

Why would someone choose to form their LLC in Wyoming?

Entrepreneurs and business owners often choose Wyoming because: (i) No state income tax on personal or corporate income; (ii) Strong privacy protections – member or manager names are not required on public filings; (iii) Low filing and maintenance costs relative to comparable states; and (iv) Flexible management structures (member-managed or manager-managed). Together, these features can make Wyoming a compelling choice for domestic and international owners alike.

Can a non-resident form a Wyoming LLC?

Yes. Wyoming does not require LLC members or managers to be U.S. residents or to be physically located in Wyoming. Non-residents may form and own a Wyoming LLC, subject only to federal requirements and ongoing compliance obligations.

What are the basic formation requirements?

To form a Wyoming LLC you must: (1) Select a unique business name that complies with Wyoming naming rules; (2) Appoint a Wyoming registered agent with a physical address in the state; (3) File Articles of Organization with the Wyoming Secretary of State; and (4) Pay the state’s filing fee. An operating agreement, while not required by statute, is strongly recommended to document ownership and governance.

How much does it cost to form and maintain a Wyoming LLC?

Initial filing fee: Typically around $100 for the Articles of Organization.
Annual report fee: Generally around $60 or more depending on Wyoming asset values.
Registered Agent fee: Generally between $40 and $120 depending on the service.

Blog

Navigating a Shareholders Agreement

Adam Blaier, Esq. 0 Comment

In the world of closely held corporations, a Shareholders’ Agreement (or Stockholders’ Agreement) is a pivotal document that governs the relationship among the shareholders of the corporation. A shareholders’ agreement may not be proper for every corporation. However, it is highly recommended for small and medium-sized businesses. Understanding the key elements of this agreement is crucial for any shareholder or prospective investor in a corporation. This blog from our business lawyers provides a high-level overview of the common provisions found in a shareholders’ agreement.

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Tax Status Flexibility for LLCs: What You Need to Know

Adam Blaier, Esq. 0 Comment
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For entrepreneurs and business owners, choosing the right business structure is a pivotal decision. Among the options, Limited Liability Companies (LLCs) stand out for their flexibility, especially regarding tax status. This flexibility allows LLC owners to align their business structure with their financial and operational goals. This blog post from our business lawyers discusses the different tax statuses that an LLC may elect.

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The Benefits of S-Corps

Adam Blaier, Esq. 0 Comment
business attorney setting up an S-Corp from her desk

Anyone starting a new business is faced with a lot of decisions. Arguably the most important is choosing the business entity type and tax status. Business lawyers and CPAs will present entrepreneurs with several options to choose from depending on the legal entity, including “S” election. 

Each type of legal entity has its benefits and limitations. Technically, there’s no legal entity called an “S-Corp.” A company that makes an “S” election for tax purposes is typically referred to as an S-Corp. However, various types of legal entities including LLCs and Corporations can elect S-Corp status. This blog from our business lawyers will discuss the benefits of “S” election.

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Blog

Should Your Startup Be an LLC or Corporation?

Adam Blaier, Esq. 0 Comment
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Search Google for the best legal entity for your new startup, and you will get different opinions. Startup advisors and CPAs will probably recommend a limited liability company (LLC). That’s because an LLC isn’t subject to double taxation and is easier to set up.

On the other hand, many startup lawyers will recommend the C-Corporation structure (typically a Delaware C-Corp) because corporate law is typically more “stable,” equity (stock) ownership is passive, and the entity is more structured.

How you choose to incorporate your startup business will have massive implications down the road. This blog from our business lawyers explores the basic advantages and disadvantages of each option.

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