Starting a Business in Wyoming: 8 Essential Steps

Wyoming has a business-friendly tax climate and low startup costs, which makes it an attractive state for entrepreneurs. If you want to start a business in Wyoming, you have to go through the incorporation process. In this step-by-step guide, we’ll explain how to form your Wyoming business and become a small business owner for more independence and fulfillment.

Start Operating in Wyoming: Key Points

• 98.9% of Wyoming businesses are small, and there are plenty of opportunities for new entrepreneurs.[1]

• You can register your Wyoming company as a limited liability company, a corporation, or a nonprofit. 

• Wyoming doesn’t require a general business license. Still, you may need an industry-specific license and a sales tax license. 

Ready to Start a Wyoming Business?

Setting up a business in Wyoming doesn’t have to be overwhelming. The incorporation process has precise steps that you need to follow to form a small business and start operating in Wyoming successfully. Even if you’re a new entrepreneur, you can become a business owner in The Equality State. 

That said, it’s essential to do your research to incorporate successfully. In the following sections, we’ll walk you through the eight steps you need to take to start a business in Wyoming. 

1. Choose a Business Idea

Some entrepreneurs have dozens of business ideas constantly swirling around in their heads. For others, choosing the right idea for their new business takes time. Whether you already have a good understanding of what you want to do or are starting from scratch, deciding on a business idea is the first step to starting a business in Wyoming. 

To find inspiration, try answering the following questions: 

• What’s in demand? Choosing a business idea in demand is the first step to success. One way to do this is to research the state’s economy and identify promising opportunities. For example, tourism is a growing industry in Wyoming.[2]

• What are you passionate about? Running a small business can be incredibly fulfilling if you genuinely care about what you do. Get creative and brainstorm how your interests or hobbies intersect with economic opportunities in the state.

• What impact do you want to make? Your business can be the much-needed solution to a particular issue you care about. Whether providing educational support or helping the environment, there are endless opportunities to build a mission-driven brand.

It’s normal if you don’t develop a great business idea overnight. Whether you’re quitting an office job to become your own boss or diving into entrepreneurship as a recent grad, there are endless opportunities out there. Don’t be afraid to follow your passions and big dreams. 

2. Draft a Wyoming Business Plan

Every new business needs a business plan to make strategic decisions and anticipate challenges. There’s no uniform business plan format that every startup needs to follow, but consider including the following sections: 

• Executive summary: a synopsis of the most critical parts of your business plan that includes your mission statement

• Financial plan: revenue and expense projections, an explanation of where your business funding is going to come from, and other financial considerations for your business

• Market research: an overview of your target customers and main competitors that explains how your business stands out

• Products and services: a summary of the main benefits and features of your services and products

• Operations and organizational structure: an overview of how your business is going to operate and team member responsibilities if you’re going to hire employees

• Marketing plan: an explanation of your marketing strategy and how you’re going to promote your business 

It’s essential to draft a business plan before moving further into the business formation process and start operating in Wyoming. Having a better understanding of how your business is going to function is going to help you avoid costly mistakes, such as not being able to cover business expenses because you didn’t anticipate them.

The U.S. Small Business Administration (SBA) has downloadable business plan templates that you can use to create a well-rounded business plan for your Wyoming company. 

3. Select a Business Name

Choosing a name for your startup is an exciting step to starting a business in Wyoming. Your business name should reflect your business idea and be memorable and unique. Deciding on a business name can initially feel daunting, but you can turn it into a fun and creative process. 

Here are a few tips to help you brainstorm: 

• Change the original spelling. You can create a unique business name by picking a well-known word and playing around with its spelling. Flickr and Lyft are examples of businesses with unconventional spelling.

• Take inspiration from mythology. Many successful businesses are named after mythical creatures or gods. For example, Nike is named after a Greek goddess of victory and Mars is named after a Greek god of war.

• Keep it simple. Your business name should be easy to remember and pronounce, so don’t over-complicate it to make it appear more meaningful or sophisticated. When in doubt, a short and straightforward name is better than a long and difficult one. 

You must also do a Wyoming business search to ensure your desired business name is available. Suppose there’s already a business registered with the Wyoming Secretary of State that uses the name that you want. In that case, you’ll need to develop a different one. You can use our Free Business Name Search tool to verify business name availability. 

There are also additional Wyoming business name requirements that you need to comply with. For example, if you’re registering a limited liability company, your business name must contain a form of “LLC.” Certain words, such as “academy” and “bank,” require additional review to get approved.[3] 

Once you find a name you like, you can reserve it with the Secretary of State by paying a $60 filing fee. Name reservation is a good option for entrepreneurs who have a solid business idea but are not ready to move forward with incorporation yet. This is also a great time to purchase a domain name. 

4. Choose a Business Structure

Your business structure determines how your business will be taxed and whether you’ll have personal liability protection. It also influences how easy it’ll be to sell your business if that’s something that you’re interested in doing one day. It’s vital to research the pros and cons of different business entities to make a decision aligned with your goals. 

Sole Proprietorship

A sole proprietorship is the default business structure in Wyoming. If you’re conducting business activities in Wyoming without a registered business, you’re automatically considered a sole proprietor. Since you don’t need to file any paperwork to become a sole proprietor, it’s one of the easiest and least expensive ways to start a business. 

The downside of being a sole proprietor is that you lack liability protection. Your personal and business finances are the same, which comes with high risks. If your company has debts or faces litigation, your personal assets, such as your house or car, can be on the line. 

Many businesses start as sole proprietorships and grow into an incorporated business structure, such as a limited liability company or a C corp. Some sole proprietors also decide to file for a DBA to conduct business under an assumed name and open a business bank account. 

Limited Liability Company (LLC) 

Many small business owners decide to form a limited liability company because it provides strong liability protection but still offers the flexibility of a sole proprietorship. As an LLC owner, you can still report your business earnings on your personal tax return the way a sole proprietor would because it’s a pass-through entity. 

Swyft Filings can help you form your LLC online in just a few minutes. 

Corporation

A corporation is an excellent business legal entity for your startup if you want to be able to issue stock or want to sell your company in the future. It offers many growth opportunities and provides you with solid liability protection. Open up a C corp in minutes with Swyft Filings. 

It’s important to note that corporations are subject to what is known as “double taxation.” Business taxation means that you’ll have to pay taxes on your business income twice as a part of your corporate tax and personal tax returns. However, some small businesses can qualify for an S corporation tax status to avoid double taxation. 

Nonprofit

A nonprofit is a business legal structure reserved for businesses that are advancing a social cause without an expectation of financial gain. For example, churches, public schools, and charitable organizations are typically registered as nonprofit organizations. Some nonprofits can qualify for a tax-exempt status. 

Swyft Filings can help you form a nonprofit in just a few clicks. 

5. File Business Formation Documents

You must complete and file business formation documents to register your new business with the Wyoming Secretary of State. Each business structure has different formation requirements, so file appropriate documents to avoid complications.

Wyoming LLC Formation Documents

To form a limited liability company in Wyoming, you’ll need to complete and file articles of organization. This document is also known as the certificate of formation. It will ask you to provide information about your business, such as its name and address. You’ll also need to appoint a Wyoming registered agent to receive mail and service of process on your behalf. 

It would be best to consider creating an Operating Agreement to govern your LLC’s internal affairs. It’s not a required part of the business formation process, but it’s highly recommended. 

LLC formation documents can be confusing, but we’re here to help. Answer a few questions about your business, and we will file all necessary paperwork with the Wyoming Secretary of State for a fast and straightforward experience. Learn more here. 

Wyoming Corporation Formation Documents

You’ll need to complete and file articles of incorporation to form a corporation in Wyoming. This document is also known as the certificate of incorporation. If you want to apply for S corporation tax status, you must also file additional paperwork. You must provide important information about your business and appoint a Wyoming registered agent. 

You’ll also need to adopt corporate bylaws. However, you don’t need to file this document with the Wyoming Secretary of State. It’s there to help you successfully govern your internal affairs.

Form your corporation accurately and swiftly with Swyft Filings. We’ll walk you through the process and file your business formation documents on industry-leading timelines. Learn more about registering a C corporation here. 

6. Apply for Wyoming Business Licenses and Permits

Wyoming doesn’t require all businesses to get a general business license. However, you may still need a federal, state, or local license, depending on the nature of your business activities. Many small businesses must get multiple licenses or permits to start operating in Wyoming, so research the requirements that apply to your business. 

Federal Licenses

The federal government requires businesses in specific industries to get a federal business license. For example, suppose you sell alcoholic beverages or engage in any wildlife-related activity. In that case, you’ll need to apply for a federal license. You can find the entire list of federally regulated industries here. 

State Licenses

You may be required to get an industry-specific business license based on the nature of your business. To determine whether you need a state business license, the Wyoming Secretary of State advises business owners to “contact the City Clerk’s Office in the Wyoming city where you are conducting business.”[4]

Local Licenses

Your city or county may have additional business license requirements. Some cities require all businesses to get a general business license, and some only regulate specific industries. You may also need to get health or zoning permits. For the most accurate information, contact your Clerk’s Office. 

Figuring out what Wyoming business licenses your startup needs involves a lot of research. You’re likely going to need to contact multiple state and local authorities. We’re here to help you save time and avoid stress. We can research the requirements your business faces at federal, state, and local levels and file your license applications with appropriate agencies.

7. File and Report Business Taxes

As a small business owner, you’re responsible for filing and reporting your business taxes on time. Missing deadlines can result in severe penalties, so research your tax obligations when you incorporate your business to stay in good standing. 

You’ll typically need to pay federal taxes to the IRS (Internal Revenue Service) and state taxes to the Wyoming Department of Revenue. Wyoming doesn’t have a corporate income tax or a franchise tax, but there is a state-wide 4% sales tax, also known as the excise tax.  

8. Open a Business Bank Account

Opening a dedicated business bank account protects your personal assets and makes it easier to navigate your business numbers. 

Most banks require business owners to have an employer identification number (EIN) or federal employer identification number (FEIN). It’s a tax ID number issued by the IRS. You can think of it as the social security number for your business. You’ll also need it to hire employees. 

You can apply for an EIN on the IRS’s website or have Swyft Filings do it for you for a more straightforward process. 

Take Your First Steps Toward Small Business Ownership

You must go through a business formation process to bring your idea to life and start a business in Wyoming. From drafting a business plan for your startup to researching license requirements, the incorporation process sometimes must be clarified. 

We’re here to help you uncomplicate starting a business in Wyoming. Answer a few questions about your business, and we’ll file all necessary paperwork with the Secretary of State. Form your LLC, corporation, DBA, or nonprofit in just a few clicks and start operating in Wyoming in no time. 

Frequently Asked Questions

Is Wyoming a good place to start a business?

Wyoming is a business-friendly state with a low tax burden. It’s a great place to start and grow a small business. 

How much does it cost to start operating in Wyoming?

Startup costs depend on the nature of your business. At the very least, you can expect to pay a filing fee when you submit your business formation documents. You may also need to pay fees when you apply for business licenses. 

Can I start a business in Wyoming without a business plan?

It’s highly recommended to create a business plan before you start a new business. It will help you make informed decisions and grow your business faster. 

What does Wyoming require to start a business?

You need to file business formation paperwork with the Wyoming Secretary of State. You may also need to apply for business licenses or permits depending on the nature of your business. 

What is the process for starting a business in Wyoming?

Once you choose your business name and structure, you must file formation documents with the Wyoming Secretary of State. Once your business is registered, you must apply for any necessary business licenses, open a business bank account, and stay up-to-date on tax deadlines. 

Why are most LLCs in Delaware?

Delaware is one of the most business-friendly states in the country and there are unique benefits to starting an LLC in Delaware. Learn more about it here. 

Bibliography

1. U.S. Small Business Administration. “Wyoming.” Accessed August 14, 2023. 

2. Britannica. “Economy of Wyoming.” Accessed August 14, 2023. 

3. Wyoming Secretary of State. “How to Choose a Company Name.” Accessed August 14, 2023. 

4. Wyoming Secretary of State. “Welcome to the FAQs.” Accessed August 14, 2023.