Hello and Welcome! If you are here, you are probably thinking about starting an LLC. Congratz! Wyoming is an excellent choice for business, offering pro-business environment and attractive tax advantages. We know that forming an LLC might feel intimidating, especially if you’re new to business. That’s why we’ve developed a step-by-step guide to lead you through each stage of the process.
What is an LLC?
An LLC, which stands for Limited Liability Company, is a type of business structure in the U.S. When you create an LLC, you gain the ability to open a U.S. business bank account, accept payments through U.S. payment systems, and most importantly, shield your personal assets from any business-related debts.
In simpler terms, if your LLC faces financial trouble or legal issues, only the assets owned by the LLC itself can be used to pay off debts or settle lawsuits. Your personal belongings, like your home or car, are protected and cannot be taken to cover the business’s liabilities. This protection is one of the main reasons why people choose to form an LLC.
Can a non-US resident start a US LLC?
Absolutely, a non-U.S. resident can establish an LLC in the U.S. There’s no need to be a citizen or resident to do so, which is why it’s a great option for international business owners. You can run your LLC from anywhere globally, while still benefiting from limited liability protection and access to the U.S. market.
Which State Should Non-Residents Choose for a US LLC?
If you’re a non-resident looking to form a US LLC, choosing the right state is crucial for your business success. Several states are popular for LLC formation due to their favorable business climates, but the top choices for non-residents often include Wyoming, Delaware. The type of business entity you choose can be influenced by your specific business model, but forming a limited liability company (LLC) in Wyoming, Delaware can be beneficial for a Non Residents.
Here is why Wyoming should be at the top of your list:
i) No State Income Tax
One of the most attractive features of forming an LLC is the absence of state income tax. Whether you live in the US or abroad, you won’t owe state-level taxes on your business income, which can save you a significant amount of money compared to other states.
ii) Strong Privacy Protection
It offers excellent privacy protections for LLC owners. The state does not require the disclosure of member names or personal information in public filings, allowing you to keep your identity private. This is a key benefit for those who value privacy in their business dealings.
iii) Asset Protection and Limited Liability
Wyoming LLCs provide strong asset protection and limited liability, ensuring your personal assets are shielded from business debts or lawsuits. This means, as an owner, you’re not personally liable for the company’s financial obligations, making this state a secure choice for safeguarding both your business and personal assets.
iv) Low Annual Fees
It offers one of the lowest annual fees for LLCs in the US. The state’s annual report fee is based on the value of the company’s assets located in Wyoming, with a minimum of just $60. This makes it affordable to maintain your LLC year after year.
v) No Citizenship or Residency Requirements
As a non-resident, it welcomes you to form an LLC without requiring US citizenship or residency. You can easily establish your LLC remotely, making this state a top choice for global entrepreneurs.
vi) Banking Benefits
With your LLC, you can open a US business bank account, which is critical for separating personal and business finances. Many banks favor Wyoming LLCs because of the state’s strong reputation for business regulation and stability.
Comparison of Wyoming vs Delaware for Non-Resident LLCs: Which is better?
It stands out as the ideal state for non-residents to form an LLC. With no state income tax, strong privacy protections, and an easy formation process, Wyoming is a smart choice for global entrepreneurs looking to establish a presence in the US as compared to the Delaware and other states. If you’re ready to get started, Bizfyle can help streamline the process and ensure your LLC is set up for success.
Steps to form US LLC in Wyoming.
Here’s a step-by-step guide to help you through the process of forming an LLC.
Step 1: Choose a Unique Name for Your LLC
The first step in forming your LLC is selecting a business name. Wyoming law requires your LLC name to be unique and include “Limited Liability Company” (LLC). Make sure your name isn’t already in use by searching Wyoming’s business database. You need to do this because two businesses in the state can’t have the same name. You don’t need to hold a name when registering your LLC. However, if you’re not ready to register right now, you can reserve your chosen name for 120 days by submitting an application and paying the $60 fee.
Step 2: Choose a Registered Agent
Every LLC needs a registered agent either an individual or company authorized to accept legal documents on behalf of your business. Your registered agent must have a physical address in Wyoming and be available during regular business hours. If you’re a non-resident, services like Bizfyle can act as your registered agent in Wyoming.
You have 3 options for who can be the RA:
- You
- Friend or Family Member
- Registered Agent Service
Step 3: File Article of Organization
To officially form your Wyoming LLC, you’ll need to file the Articles of Organization with the Wyoming Secretary of State. The Articles of Organization for a LLC typically include the LLC’s official name, registered agent information, principal office address, and the management structure (whether it’s member-managed or manager-managed). It also requires the names of the organizers and their signatures. You can file online or by mail, and the filing fee is usually around $100. This gets filed with the Wyoming Secretary of State.
Step 4: Create an Operating Agreement
Although not required by the state law, drafting an Operating Agreement is highly recommended. This internal document outlines the ownership and management structure of your LLC, helping prevent potential disputes among members down the road. Some banks may also require an Operating Agreement when you open a bank account for your LLC.
Step 5: Get a EIN (Employer Identification Number)
If you do not already have it, you should obtain an EIN through the IRS Official Website. An EIN is required if you plan to hire employees, open a business bank account, or file federal taxes.
Step 6: Open a US Bank Account
Once you have your EIN, the next step is opening a business bank account. This separates your personal and business finances, which is crucial for maintaining limited liability protection. Non-residents can use services like Bizfyle to simplify the process of opening a US bank account remotely.
Step 6: Stay Compliant with Annual Filings
LLCs are required to file an annual report to maintain good standing with the state. The annual report fee is based on your business’s total assets located in Wyoming, with a minimum fee of $60.
Secretary of State Wyoming
The Wyoming Secretary of State is a pivotal figure in state governance, elected every four years as outlined in Article 4, Section 11 of the Wyoming Constitution. Beyond the election, this official has a broad range of responsibilities and duties that are crucial to the state’s operations.
Why Compliance with the Wyoming Secretary of State is Crucial for Your LLC?
To keep your business running smoothly and legally, it’s important to follow the Wyoming Secretary of State’s rules. Staying on top of these regulations helps you avoid fines and any potential legal trouble. Ignoring them could put your business at risk. So, staying compliant is key to protecting your business and keeping it successful.
