Admit it or not, launching a business outside your home country can be intimidating. But did you know that forming a Wyoming LLC for non-residents isn’t an impossible feat to achieve in the US?
In this post, our business experts will discuss the perks of becoming a Wyoming LLC and the steps you must take to make it happen.
Benefits of Forming an LLC in Wyoming
When forming an LLC in Wyoming, you wouldn’t need to worry about an extensive filing process. Fewer state requirements to fulfill means that you could focus more on the company’s operation. The state only requires a few documents to process your registration and maintain your entity structure.
Less Tax Obligations
Upon our team’s checking, we also noticed that Wyoming has lower tax obligations than other states. In fact, it may surprise you that they don’t require LLCs to pay personal or corporate income tax.
Their budget-friendly taxation system can benefit new foreign business owners, especially because it wouldn’t make so much dent in your profits.
As previously stated, LLC filing obligations in Wyoming are pretty few. Because of that, the filing fees you need to pay may not be as high as in other states.
Compared to its close alternatives like Nevada and Delaware, forming an LLC in Wyoming would only cost company owners around 150 bucks. These expenses already include requirements like filing organization articles and submitting your LLC’s annual report.
How to Form a Non-Resident Wyoming LLC
Step #1: Register Your Desired Business Name
Like any local LLC, your business must have a unique trade name that’s not yet in use. Our business experts suggest taking time to think of your business name as any similarity with other companies can cause confusion and lead to the rejection of your registration.
Your LLC name should also contain words such as (but not limited to) Limited Liability Company, Limited Company, LLC, or anything that could imply your business type.
Step #2: Choose a Registered Agent
Forming a Wyoming LLC for non-residents includes a registered agent requirement. Assuming that you’re not physically present in the state, Wyoming law requires you to hire a legal representative who’ll accept important notices and documents from the government.
Step #3: File Your Business’ Articles of Organization
Before you can be recognized as a legal entity, you must submit articles of organization to Wyoming’s secretary of state. Remember, this submission comes with a filing fee.
Our trade experts also advise indicating if your LLC will be managed by members or appointed managers. Usually, it would depend on how big the company is.
Step #4: Apply for an EIN
As a legal business operating in Wyoming, you must obtain an Employer Identification Number for your company’s tax oblogations.
You may think it’s hard to obtain EIN as a non-US resident, but the only difference is you don’t have ITIN or SSN to provide. But as long as your business is already registered, there shouldn’t be any problem.
Step #5: Follow Business Permit Requirements in the State
Generally, Wyoming doesn’t have business permit requirements. However, if your LLC is involved in specific professional industries, you may need to check the licenses you must acquire before legally operating in the area.
Step #6: Write an Operating Agreement
Drafting an operating agreement for the company isn’t mandatory, but our business experts highly recommend having one. This document includes the details of LLC members and the regulations everyone must abide by when making important management decisions.
Step #7: Open a Bank Account
Opening an American bank account is the most challenging process a non-resident LLC owner could face. The good news is you can consider banks that have branches available in your home country and the US.
If that’s not an option, you can appoint a representative who has US citizenship to open a business bank account on your company’s behalf.
Wyoming Annual Report
One of the few state obligations you must fulfill as an LLC is filing reports yearly. You can submit it online or send it to the secretary of state’s office. Keep in mind that delays in payments may cause penalties, so we advise keeping track of filing deadlines.
Wyoming Non-US Resident LLC vs. Wyoming Non-US Corporation
The main difference between filing as a Non-US resident LLC and Corporation is their tax obligations.
As a corporation taxed in America, the Wyoming government may tax your company’s income in and out of the country. On the other hand, out-of-state LLCs in Wyoming are only taxable for the income they’ll acquire in the US.
While reading this review, you may think that forming a Wyoming LLC for non-residents is as easy as typical company registration. However, our trade experts would like to remind you that certain processes like opening a bank account and obtaining EIN have different steps.
If you’re having difficulty managing the legwork, hiring incorporation services is still the best way to consider.