Note: Our tax lesson is not as step-by-step as our other Wyoming LLC formation lessons, due to the uniqueness and variation among businesses formed in Wyoming.
Taxes are not as straightforward as forming an LLC, and therefore, the information below is an overview, and not a comprehensive guide.
We recommend speaking with a few accountants in Wyoming to make sure you meet all your state and local tax obligations.
“Taxes are paid where the money is made”
It’s important to note, that if you formed (or are forming) an LLC in Wyoming, but you are actually doing business in another state, you are going to pay income taxes (if applicable) and other taxes in your home state.
If you haven’t yet formed an LLC, we recommend reading Where’s the best state to form an LLC?
Federal Income Tax
Most LLCs do not pay taxes directly to the federal government. Instead, the members of the LLC are responsible for reporting income or losses on their personal 1040 tax return with the IRS.
LLC income is most often reported on a Schedule C, however, you may need to include additional Schedules, depending on how you derive your income.
By “most LLCs”, we are specifically referring to LLCs taxed in their default status. Unless you elect to have your LLC taxed as a Corporation, single-member LLCs are taxed like a Sole Proprietorship and multi-member LLCs are taxed like a Partnership.
Alternatively, LLCs may elect to be taxed as C-Corp or more popularly, LLC taxed as S-Corp (in order to save money on self-employment taxes).
Wyoming LLC taxed as an S-Corp:
Typically, most accountants recommend that your LLC’s net income (income minus expenses, but not including salaries) be around $70,000 per year (per Member), plus or minus. At this point, the accounting and administrative costs of maintaining the S-Corp tax status are offset by the self-employment tax savings.
Wyoming State Income Tax
Wyoming is currently 1 of 7 states that do not impose a personal income tax. This means the members of your LLC will not file a state-level return in Wyoming.
Capital Gains or Interest:
Wyoming does not place a tax on capital gains income or income earned from interest.
Income Earned from Another State:
Wyoming does not place a tax on income earned from another state.
Wyoming does not place a tax on retirement income.
Wyoming Sales Tax
The state of Wyoming charges a 4% sales tax. Additionally, counties may charge up to an additional 2% sales tax.
If your business is responsible for collecting and remitting Wyoming sales tax, you need to register with the Wyoming Department of Revenue. You can find more information on Wyoming’s Excise (Sales & Use) Tax Division site.
Additional Taxes in Wyoming
This information on this page is not all-inclusive.
Although this may not affect all of our readers, Wyoming imposes taxes on gasoline, cigarettes, alcohol, real property, personal property, and inheritance and estate tax.
Wyoming Tax Resources
Wyoming Department of Revenue:
Wyoming Department of Revenue: Contact Us
Registering for Wyoming Business Taxes Online:
Wyoming Department of Revenue: Wyoming Internet Filing System (WYIFS)
The following are from this page:
Sales and Use Tax:
Department of Revenue
Herschler Building, 2nd Floor West
Cheyenne, WY 82002
Website: Excise (Sales & Use) Tax Division
Department of Workforce Services
1510 E. Pershing Blvd., South Door, 1st Floor
Cheyenne, WY 82002
Website: Workers’ Compensation
Department of Workforce Services
Physical Address: 100 West Midwest, Casper, 82601
Mailing Address: P.O. Box 2760, Casper, WY 82602-2760
Website: Unemployment Insurance
Internal Revenue Service:
Cheyenne Address: 5353 Yellowstone Road, 2nd Floor, Room 200, Cheyenne, 82009
Casper Address: 100 East “B” Street, Room 1136, Casper, 82602
Sheridan Address: 1949 Sugarland Drive, Suite 292, Sheridan, 82801
Website: IRS Local Office in Wyoming
Local Taxes for Wyoming LLCs
If your business is located in Wyoming, you may need to file and pay local taxes. For example, to your city, township, or county.
Again, this depends on where your LLC is located and what type of business you are in. We recommend seeking professional assistance.
Calculating your tax obligations federally (with the IRS), on the state-level (with Wyoming), and locally (with your city, county, or township), can be complicated and if done improperly can negatively impact your LLC.
Hiring a tax professional will not only help you keep your Wyoming LLC in compliance, but it will also give you an advisor to go to for other business questions.
You’ll want someone who’s a good fit for your company, makes you feel comfortable, and is willing to answer all of your questions. It should be someone you like personally as well as professionally. We recommend talking with at least 2-3 accountants before making your final decision.
Wyoming Property Tax Division
Wyoming Department of Revenue: Mineral Tax Division
Wyoming Department of Revenue: New Vendor Packets
Wyoming Department of Revenue: Excise (Sales & Use) Tax Division
Wyoming Department of Revenue: Wyoming Internet Filing System for Business (WYIF)