As a C-Corp starter, you need to know what’s the right industry for you. The right industry is all you need for your corporation’s growth and sustainability along with your preferences and interests. Your management skills and finances will be cheery on top. It’s important to determine whether you can do it all by yourself or need an honest bunch of people at your side. Keep in mind that there is no such thing as a perfect business structure. The only thing that matters is that you keep up with the market competition and demand. Amidst everything, the ease of doing business in the US varies with the various state regulations. There are different requirements of every state for C-Corp formation and you would want to understand all the state requirements first.
Wyoming welcomes C-Corp entrepreneurs because no other state offers affordable taxes for individuals and corporations. There are a lot of other benefits that we shall discuss in this article. FastCorpUSA compiles everything in detail so that many business owners should know the plan and choose the best for business running.
Why Choose Wyoming?
Wyoming is always preferred and this has become more evident in recent years. There was a massive rise in business applications in the years following 2016 and 2018. Business applications are driven by the surge after 2019 rapidly more than 24000. This shows the resilience of the business sector, especially the corporations. The number of corporations registered in Wyoming reached almost 28,880 in October 2022. The hype is something about. Wyoming will then definitely be considered as a favorite state for corporations according to these statistics. There are many reasons for this but the most common are reasonable fees, ease of doing business, and a favorable tax climate. Wyoming meets the eye with every start-up or SME (Small-To-Medium Enterprises).
Here are some more reasons to incorporate in Wyoming:
Privacy For Corporation Affairs
The state of Wyoming is known for maintaining unrivaled privacy protection for a long time. Your C-Corporation doesn’t need to go on a public record if you are doing it in Wyoming. You can sustain and grow your business in private. Your anonymity is 100 % protected with registered agents. Also, the state offers a service of process from a manager or nominee director.
The registered agents act on your behalf and are at the forefront of your business. They can show their details publicly but not yours. The better is to say that they are dummies whose position is only safe in your corporation’s name and nothing more than that. They couldn’t have a say over your business. Your identity will always remain confidential even if there are legal matters, address, or business identity.
Reasonable Corporation Fees
Wyoming is popular if you consider lower fees for all corporate matters. Delaware for C-Corps is also on the hot list for the same purpose. Some other notable states include Texas, Nevada, and Florida. The reasonable fee for filing and maintaining a business is one of the vital considerations for choosing Wyoming for business. The fee is below the US average and that means it is reasonable if compared to other states.
Null State Income Taxes For C-Corps
You will be surprised to read that Wyoming is one of the few states without state income taxes on corporations. You do not pay double income taxes if it’s in Wyoming. Moreover, the state doesn’t impose franchise taxes on annual report filings. The lowest corporate fees make it a considerable option for you. The tax fees in most of the states range from 40% to 55%. But, Wyoming doesn’t impose anything like that and thus the tax burden is smaller. Therefore, most of the startups and small businesses are turning toward Wyoming. There is a different tax pattern between corporations and LLCs. LLCs have a pass-through taxation system but corporate income taxes are reported by the company directly.
Ease Of Doing C-Corp Business
One of the plus points of doing business in Wyoming is that you can live anywhere while running your business in Wyoming. However, this is accompanied by certain guidelines. First, you have to be at least 18 years of age for doing business in Wyoming. Second, you can sip your favorite cocktail anywhere you want. All thanks to the registered agent who will make it possible for you! With all Certainty! All non-Wyoming residents are confident about their business.
Legal Protection For Corporations
Wyoming legal protection for Corporations is nothing fraud. The state has the finest law history for all kinds of business. The state privacy guidelines are listed on their website and everyone must know these properly before entering into the market. All other gentler regulations and formalities revolve around focusing on your business in general. As long as you have read these guidelines and complete the documentation, there is nothing to worry about. You can work anywhere according to your ease as far and your registered legal agent services must be available within normal business hours.
Wyoming Cost and Taxes For C-Corps
At FastCorpUSA, you will get complete information regarding the cost and incorporation process in Wyoming. A C-Corp fee sees a state fee for a standard turn-around, a certified copy fee for Articles of Incorporation, and incorporation service packages from an authorized registered agent. You can choose according to your ease. You’ll need a foreign qualification certificate from the authority if you are a non-US resident or foreign to the state. This is mandatory before creating a physical presence or bank in the state or hiring employees. You can start with the state filing fee but every state their requirements. The state filing fee is almost $100 with a period of 3 weeks. The fee filing for all kinds of annual reporting in Wyoming is almost $50 as this is due at the time of filing. The annual reporting fee must be submitted on or before the anniversary month of the corporation. The fee is based on the corporation’s assets located in Wyoming. Then, there is a state tax identification number fee. Obtain an EIN for corporations that will have employees.
Moreover, the taxes include the payroll tax, state sales tax, and employee insurance. C-Corps pay taxes on the business’s income and losses on a corporate level.
How To Form A C-Corp In Wyoming?
C-Corps in Wyoming offers the highest degree of personal liability protection for their owners. It is a separate legal entity for all kinds of tax purposes. Moreover, the C-Corporations come with more financing options in Wyoming too. These can sell stock to raise capital and investors to show interest and confidence in funding the business.
The steps are listed below with some special considerations.
Name Your Wyoming C-Corp
Like all other businesses in the world, choosing a company name is a must. You must follow the Wyoming naming guidelines as a business owner and must adhere to these guidelines. These are stated as:
- You are not required to use a C-Corp name ending such as ‘Inc’ or ‘Incorporated’. Your corporate name must imply a purpose and that’s not different from the purpose in the Articles of Incorporation.
- The name shouldn’t be similar to any domestic foreign, or trade name, or service mark, or nonprofit corporation statutory trust company, or any other business entity. Avoid name similarity to avoid any confusion in the future. This will ensure the uniqueness.
- Using the word ‘Trust’ is not acceptable. You need prior approval from the Department of Education in the case of naming hospitals, clinics, banks, and universities.
- The company names start with ‘A’ followed by any punctuation or space that needs a more thorough review. The same goes for using any special characters or languages in the corporation.
- Make sure the business name is still available in Wyoming. You can check the list of names on the Wyoming Secretary of State’s website. You can reserve and then later pay a fee for it as this will help you know if it’s still available.
- You can also ensure the uniqueness of your website in case if you use your company name as a web domain. You will have complete ownership once you purchase the URL. Having a company website is a privilege as many transactions and processes are now done online.
Choosing A Registered Agent
Having a registered agent in Wyoming means having someone to determine how to incorporate in Wyoming. A registered agent will receive and handle all legal documents and also notify you of all legal events like annual report filings. Choosing an agent who is a resident of Wyoming or legal age would be suitable among all. It is fine to appoint any other person or yourself if other persons are involved in the business but it’s always better to receive expert help always.
Hence, you can focus on the operations of your business. Also, lawsuits are sent to his physical address or business address. Wyoming always allows professional service business persons as registered agents such as attorneys, physicians, and professionals to form a PC (Professional Corporation).
Fill Out The Articles Of Incorporation
Always hold an organizational meeting before executing the articles of incorporation. This is an essential document while incorporating and it contains everything about your corporation. The articles of incorporation include details like C-Corp name, address, corporate registered name and address, the number and class of authorized shares, and contact details. However, do not forget to go all along with the requirements of these articles. The requirements also vary from state to state. The requirements of Wyoming include information about stock, officers, and registered agents. Officers’ names are not required to be listed on the Articles of Incorporation. The authorized shares must be listed on the articles of incorporation.
Create and Approve Bylaws
The company will get a sense of direction with corporate bylaws. Wyoming offers a list of guidelines for owners, employees, and shareholders. You can have a legal basis when making or implementing decisions and settle disputes legally and professionally.
Elect Your Initial Directors
Select your initial directors wisely as they manage your company. These will be the ones who ensure the company will not be at risk or the ones to work on its growth. Wyoming has also certain guidelines for the directors of C-Corps. First, the minimum number of directors must be one or more. Second is the residence requirement. Wyoming doesn’t have a clause specifying where directors must reside. Third, there is no specific age requirement for directors in Wyoming. Last, directors’ names and addresses are not required to be listed in the Articles of Incorporation.
Identify Share Structure
A share structure determines the ways to distribute profit and losses. These shares are units of ownership or interest in a C-Corporation. Further, these can be structured into classes. A good thing is that Wyoming’s profit distribution is flexible in this regard. If it’s stated in the operating agreement, those with 5% interest can receive up to 20% profit.
File The Articles of Incorporation
As it is said above, this is an integral part of the documentation process. You must file this document with the Wyoming Secretary of State. The filing fee for it is almost $100. You can file it with some extras for more convenience. Remember! You can’t return this amount once you have filed it.
Get An EIN For Wyoming Corporation
You need an EIN when you form a corporation in Wyoming. It must comply with the requirements of the IRS. An EIN is a nine-digit number that is used to identify a business entity.
Read our article on how to get an EIN for C-Corporations!
Ready To Incorporate In Wyoming?
Are you all set to pay the fees and prepare legal documents to incorporate in Wyoming? It is a good thing that Wyoming has more guidelines and reasonable fees. All you have to do is adhere to the state laws so your business will be at no risk.
If you want to know more about registered agents or how to incorporate them, seek assistance from Fast Corp USA. Professionals specializing in business laws and guidelines can help you to run your business faster. This is our promise to you!