Classified as the most tax-friendly and business-friendly state in the country since 2013, Wyoming can offer you more than what you are looking for. Besides having the best tax climate, the state has wide-open spaces, adventurous recreation opportunities, safe neighborhoods, well-funded public education, top-ranked broadband connectivity, outstanding transportation options, and a pro-business attitude.
In short, not only do businesses thrive in Wyoming, the people thrive as well. So, if you are planning to start something in the USA, Wyoming should be your choice as it has a very strong economy. And the economy keeps growing every year. In addition to this, the state is a great place to live as well. You can pack up with your family and move to Wyoming to start your business and begin living here.
And it doesn’t end here; Wyoming has a lot to offer, especially when it comes to businesses. Let us explore what Wyoming can do for your business and you.
Why Choose Wyoming to Start Your Business?
Every entrepreneur searching for a place to start their company looks for a few factors to help their business run smoothly and grow quickly. Wyoming has all of these benefits and some more. This is also one of the main reasons why a lot of businesspeople are drawn to the state. Here is a list of reasons why Wyoming should be your choice, too:
Leniency in Taxation
Wyoming is considered to be the best option to open a business because of its tax climate. The leniency in its taxation system is what every startup needs. Moreover, Wyoming has been ranked many times as the #1 state for the best business tax climate. Some of the reasons why it has a low tax burden and a tax-friendly environment are:
There is no corporate state income tax or entity tax.
Once you have your business set up in Wyoming, you wouldn’t have to pay any personal income tax (for the salary you give yourself as the owner).
Wyoming doesn’t impose taxes on items like gas or food.
There are no inventory taxes, no franchise taxes, no occupation tax, no gross receipts tax, and no value-added tax.
In estate administration matters, you would not have to pay an inheritance tax.
There are no taxes imposed on intangible assets.
Wyoming doesn’t have burdensome tax regulations, no per-capita tax, and no excise tax.
If you decide to open a manufacturing unit for machinery used in the state, you can benefit from the manufacturing sales tax exemption. There will be no fuel and electricity consumption taxes for running the unit. All the capital you put into the company and its machinery can be used in deductions.
Keep in mind that Wyoming is not tax-free. Every business incorporated in the state has to pay for the sales and property taxes within the state. But there is a benefit here too. The sales tax rate is one of the lowest ones in the country, which is at 5.34%.
Moreover, if the company has a property in the state (a regular commercial space or an industrial property), the company needs to pay the property taxes. For industrial properties, the tax applied is 11.5% and for commercial properties, the tax applied is 9.5%. You can find a way around this by getting a virtual office instead since it is not mandatory to have a brick-and-mortar office.
Maximum Privacy
If you start your business in Wyoming as a corporation or an LLC, the details of the shareholders (including you, or even just you) won’t be listed on the public database. As per the law in Wyoming, the member, manager, or business owner’s information does not have to be listed on the public database.
This secures your identity, which in turn, offers you privacy and guards you against any civil liability that might come upon you. Moreover, if you are planning to grow your company and include more shareholders in the future, this is a huge positive point. Shareholders will be more inclined to invest in your Wyoming corporation due to the privacy and protection it offers.
Asset Protection
Wyoming has a strong asset protection law that offers limited liability to those opening a business in the state. All the liabilities of your corporation or LLC will be linked to the business itself. No creditor can force the sale of your personal assets. However, it is not a free pass for indulging in any fraudulent activity. And if any wrong-doings or discrepancies are found in the company, the limited liability protection will not be applicable at all. But if you do right by the laws and your business, you will not be responsible for any liabilities and debts of your Wyoming company.
No Capital Requirements
For every company that is incorporated, there is a concept of “minimum capital requirement” that has to be obeyed. This means that the shareholders or owners need to deposit a specific amount as share capital to start the business operations. The amount is normally paid with a notary or a bank, once the business has been incorporated. As per US corporate law, there is no minimum capital requirement to start a business.
With this, each state can set its own rules and a minimum capital requirement as they please. Unlike many states that have a specific amount required to start a business, Wyoming has no such requirements. This means that you can simply start your company with as low as $1, or as high as $1 million in Wyoming.
Unlimited Stock Issuance
Another great benefit of incorporating your business in Wyoming is that it allows the business to issue unlimited shares for your corporation. In addition to these, some other added benefits include:
Having the flexibility to classify the shares as preferred, common, or a mix of both types.
Corporations can issue no par value for the shares, with the choice to change the value of the shares in the future.
Stocks of a Wyoming corporation can be issued in exchange for anything that is valuable (other than capital), including services or property.
Low Startup Cost
Opening a company in Wyoming is very easy thanks to the low incorporation cost. The minimum annual fee is $50, which is based on the value of the total assets in the state. And the incorporation fee is just $100. This is the lowest amount as compared to the maintenance and incorporation fees of many other states. Moreover, you do not need a regular commercial space to register your business. Instead, you can opt for a virtual office which will further reduce your overall startup cost.
Need Help with a Wyoming Business Idea?
If you are still in the initial phase and need help with a business idea, here are some of the top most profitable business ideas that will work in Wyoming:
Home Improvement: The home improvement industry in Wyoming is a booming one. You can be sure to succeed in it if you have the right tricks and skills up your sleeve. However, you would need certain permits, professional licenses, or a general contractor’s license before you begin.
Professional Services: This is a business idea that can work anywhere, even in Wyoming. Have a specialized skill? Well, make it your business! Just ensure that you find the best place to start this business. You do not want to open a dance academy at your home or in an industrial area.
Paper Manufacturing: The paper industry is huge in Wyoming and one of the reasons its economy is growing every year. You can open a business to manufacture paper or even paper products. The raw materials are easily available and can be obtained from the soda ash refining industry and trona mines.
IT Services Company: The internet is booming and everything is going online. You can easily start a business that offers IT services including web and mobile app designing, content marketing, digital marketing, and so on.
Glassware Manufacturing: Wyoming has the largest trona industry in the country. And trona is used for many things including glass and paper production. So, opening a glassware business here is the best choice you might ever make. But before you do so, make sure you are ready for it since it is an industrial company and you will need many resources to run it.
With this said, if you already have a business idea that is great, then all you need to do is get it registered in Wyoming. On the other hand, if you already have a business in another state and are thinking of dissolving it so that you can move and open a new one in Wyoming, then we have better advice for you. Do not dissolve your current business and move it to Wyoming instead. You read that right - Wyoming allows you to move any kind of business into the state without many issues and formalities.
In fact, after you move to Wyoming, you will be able to retain your existing tax ID along with the original incorporation date and formation details. Moreover, the cost is low and the procedure is very straightforward. But just to ensure that it is done properly, you are advised to take the help of a professional service provider like IncParadise.
Conclusion
From what has been shared above, it is clear that Wyoming is one of the best states in the USA to start a business due to its numerous advantages and top-notch tax climate. So, if you have a business idea ready, it is time to incorporate your business and turn your dream into reality. Just keep in mind that as per Wyoming state law, you will need a registered agent to help you to incorporate your business.