Wyoming LLC Taxes

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Wyoming LLC Taxes

Quick Start Guide
This Quick Start Guide is a brief overview of how to form an LLC in Wyoming.

Detailed Lessons:

 

Wyoming LLC Costs:
Wyoming state fee: $100
Annual Report: $50 (if you have $250k+ in assets located in WY, then it’s higher)

Need to save time?
Hire a professional to form your LLC in Wyoming:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)

Note: Our tax lesson is not as step-by-step as our 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.

Recommendation:
We recommend speaking with a few accountants in Wyoming to make sure you meet all your state and local tax obligations.

We recommend using Thumbtack or reading our How to Find an Accountant guide.

Overview

“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 have not yet formed an LLC, we recommend you read our “Best State” article:
https://www.llcuniversity.com/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).

If an LLC is taxed as a C-Corp, it must file federally, using Form 1120. If an LLC is taxed as an S-Corp, it must file federally, using Form 1120S.

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.

Retirement Income:
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 here: http://revenue.wyo.gov/Excise-Tax-Division

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:
http://revenue.wyo.gov/home/contact-information

Registering for Wyoming Business Taxes Online:
http://revenue.wyo.gov/Electronic-Services/excsie

The following are from this page:

Sales and Use Tax:
Department of Revenue
Herschler Building, 2nd Floor West
Cheyenne, WY 82002
Phone: 307-777-5200
Fax: 307-777-3632
Email: [email protected]
Website: http://revenue.wyo.gov/Excise-Tax-Division

Workers’ Compensation:
Department of Workforce Services
1510 E. Pershing Blvd., South Door, 1st Floor
Cheyenne, WY 82002
Phone: 307-777-6763
Fax: 307-777-5298
Email: [email protected]
Website: http://wyomingworkforce.org/businesses/workerscomp/

Unemployment Insurance:
Department of Workforce Services
Physical Address: 100 West Midwest, Casper, 82601
Mailing Address: P.O. Box 2760, Casper, WY 82602-2760
Phone: 307-235-3264
Fax: 307-235-3277
Website: http://wyomingworkforce.org/businesses/ui/

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
Phone: 800-829-1040
Website: https://www.irs.gov/uac/contact-my-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.

Our Recommendation

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.

We recommend that you get help from a local accountant once your Wyoming LLC is formed. You can use Thumbtack, Yelp, or check out our How to Find an Accountant guide.

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.

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Matt Horwitz
Founder & Educator at LLC University
Forming an LLC shouldn't be so complicated. Our step-by-step guide will make the process a breeze – and no complex legal jargon! We teach people how to form an LLC for free in all 50 states. We hope you find our free guides and resources helpful in your entrepreneurial journey.

2 Comments

  1. Biya April 3, 2018

    Hi,

    It’ll be great if you can elaborate tax ruling for a foreigner having LLC in Wyoming. A person who doesn’t live in the USA and don’t have employees.

    Thanks

    reply
    • Matt Horwitz April 8, 2018

      Hi Biya, we don’t elaborate on taxes, especially for foreigners, as they vary like crazy. Each person has different requirements on how to file and where to file. We encourage you to speak with an accountant. Thanks for your understanding.

      reply

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