Limited liability companies (LLCs) are a popular type of business structure for company owners who want to protect their personal assets and themselves from personal liability if anything goes wrong with the business.
LLCs combine the protection from liability of a corporation with the increased control and fewer tax requirements of a partnership. In order to form your company as an LLC, you will need to register as such with the Wyoming Secretary of State.
To create an LLC in the state of Wyoming, you will need to meet several different requirements. The most important aspect that you will need to initially do is to complete and file the correct paperwork. However, before you can file the paperwork, you will first need to determine what the name of your company will be and find a registered agent.
Your LLC’s name will need to include some form of “LLC” in its name, and the name cannot be already in use by another company in Wyoming. A registered agent can be any person or any business who is authorized to do business in Wyoming. They do need to have a physical address, not a drop box or post office box, in the state. They will be responsible for receiving any legal documents or papers that are served on your company.
The requirements and documents needed to successfully form an LLC in Wyoming can be somewhat intensive. There may be many items that must be completed and decisions that must be made in connection with the business. It is generally recommended that you work closely with a legal professional, who can help you ensure that all the requirements are met on time.
Forming an LLC in Wyoming can be done either online or through the mail. If your LLC is based in Wyoming, you will need to file Articles of Organization. In order to file this, you will need important information, such as the name and address of the LLC, whether it will be a closed LLC, and the name and address of the registered agent. You will also be required to provide the address of the principal office as well as the signature of the organizer.
If your company was previously established in another state or country, then you are required to fill out an Application for Certificate of Authority. The form will require that you state the original name of the LLC, where it was formed, and when and how long it will want to exist, which can be forever. Also, you need to list the mailing address, the address of the principal office, and the name and address of the registered agent.
Finally, you have to state when you will start doing business in Wyoming and the form must be signed by a manager, member or another authorized person. In addition to filing the Articles of Organization or Application for a Certificate of Authority, you will also need to submit a completed Consent to Appointment by Registered Agent, which also needs to be signed by your registered agent.
As the first state to allow businesses to form as LLCs, Wyoming has a history of protecting LLC businesses. Wyoming also does not have a state income tax, which is an additional benefit for LLCs because the profits for an LLC are only taxed through the owner’s income taxes.
In general, LLCs provide several advantages and benefits for its members. A main benefit is that the individual members cannot be held personally liable for the debts of the company or for its violations.
For instance, creditors cannot reach the financial resources of LLC members for the purpose of paying of company debts. On the other hand, the LLC members are still liable for their own negligence and their own personal debts apart from the company.
LLCs in Wyoming have to file an annual report on the anniversary of their registration. They must also pay a license tax each year. The license tax is either $50 or $0.0002 of each dollar of the value of the LLC’s assets located and/or employed in the state, depending on which amount is higher.
In addition, LLCs can place various restrictions on its members with regards to the amount of control they have over the company. LLC members generally have less say in important corporate decisions as compared to members of other business structures such as a partnership.
They may also be limited in the way that they can contribute financially to the business. These types of issues may require the assistance of a business attorney in order to avoid a violation from occurring.
Forming a Wyoming LLC is not an easy process, and many questions and legal issues can arise during the process. Speaking with a Wyoming business lawyer before creating an LLC is helpful in making sure you are accurately following the law and that all requirements are met.