WYOMING COMPANY FORMATION FOR FOREIGNERS

My Wyoming LLC Formation Fee: $ 1,000

Types of companies in Wyoming

Choosing the right company type

Each company type in Wyoming offers distinct advantages and carries different obligations. There is no one-size-fits-all solution in the field of Wyoming company formation and the choice really depends on your particular needs. However, due to its flexibility, most foreign investors and businessmen usually prefer to form a Wyoming Limited Liability Company (LLC).

Why Wyoming?

Wyoming LLCs are an excellent choice for foreign entrepreneurs due to their strong privacy protections, tax advantages, and ease of management. One of the biggest benefits is the high level of anonymity they provide, as the state does not require owners or managers to be publicly disclosed. Additionally, Wyoming does not impose state income tax, franchise tax, or capital gains tax, making it a tax-efficient jurisdiction for international business owners.

Foreign entrepreneurs can fully own and manage a Wyoming LLC without needing a U.S. resident partner or physical presence in the country. The state also offers strong asset protection through charging order protection, which prevents creditors from taking ownership of the LLC or forcing distributions. This level of security is superior to what many other states offer, including Delaware and Nevada.

Compliance requirements are minimal, as there is no need to file an annual report with detailed financials. Additionally, Wyoming allows LLCs to exist indefinitely, making it a great option for long-term business planning and estate management.

Another key advantage is the ability to access U.S. banking and payment processing services, which can enhance credibility and facilitate international transactions.

With its combination of privacy, asset protection, and tax benefits, Wyoming stands out as one of the best jurisdictions for foreign entrepreneurs looking to establish a U.S.-based business.

Wyoming LLCs Accounting Requirements

Wyoming LLCs have relatively simple accounting and compliance requirements, especially compared to corporations. Here are the key points:

1. No State Income Tax

Wyoming does not have a state income tax, so LLCs do not need to file a state income tax return.

2. Annual Report Fee

Wyoming requires LLCs to file an Annual Report with the Secretary of State.
The fee is $60 or 0.0002% of the company’s assets in Wyoming (whichever is greater).

3. Federal Tax Filings

A Single-Member LLC is treated as a disregarded entity by default and reports income on the owner’s Schedule C (Form 1040). However, disregarded entities with foreign ownership are required to file a pro-forma Form 1120 and Form 5472 with the IRS by the tax return due date.
A Multi-Member LLC is treated as a partnership by default and must file Form 1065 (U.S. Return of Partnership Income) and issue Schedule K-1 to members.
An LLC can also elect C-Corp status (Form 1120) taxation if beneficial.

4. Bookkeeping & Accounting

Even though Wyoming has minimal reporting, LLCs should maintain proper financial records for tax and liability protection.
This includes income statements, balance sheets, invoices, and receipts.

USA Taxation of Wyoming LLCs

Despite the lack of State income taxes, Wyoming LLCs are subject to USA Federal Tax Laws. The Internal Revenue Code (the "IRC") dictates that the taxation of Wyoming LLCs is contingent on the number of members. In a unique scenario, if the LLC has a single member, it is treated as a disregarded entity for Federal Income Tax purposes. Disregarded entities with foreign ownership are required to file a pro-forma Form 1120 and Form 5472 with the IRS.

On the other hand, if the Wyoming LLC has two or more members, it is treated as a partnership for tax purposes. Unlike corporations, it is not subject to double taxation. Instead, it is considered a flow-through entity for Federal Income Tax purposes. This means that LLC members are required to report their share of taxable net income generated by the company in their personal tax return, even if the income is not distributed by the LLC.

However, the sole member of, or the members of, a Wyoming LLC can file a tax election with the IRS to treat their limited liability company as a separate taxable entity. In that scenario, the Wyoming LLC would be taxed as a Wyoming Corporation and subject to the US Federal Corporate Income Tax, whose rate is currently 21%.

How much does it cost to form a Wyoming LLC?

My Fee for Standard Wyoming LLC Formation - US$ 1,000

The fee includes:

Required filings with Wyoming Secretary of State for LLC formation
Wyoming Business License fee for 1 year
Wyoming registered agent service for 1 year
Application with the IRS for an Employer Identification Number (EIN)
Introduction to a recommended US financial institution
Initial Beneficial Ownership Information Report (BOIR) filing with FinCen

Any other professional service is not included in the fee quotation above. Any additional professional service is charged according to my fee policy.

Can I request your assistance to form a Wyoming Corporation or Partnership?

Yes. I can also assist you in forming a Wyoming Corporation or a Wyoming General or Limited Partnership. Do not hesitate to ask me for a price quotation for those services! A professional US CPA will guide you throughout the Wyoming company formation process and explain all the accounting and tax requirements for a Wyoming Corporation or a Wyoming Limited Partnership or General Partnership.

Do you also provide company formation services in other US States?

Yes, I can assist you in the company formation process in most US States. Bear in mind that the US Federal Income Tax applies equally in any US State and that each US State can have a different legal framework for company formation. If you need specific advice on corporate law, I will be happy to refer you to a licensed US corporate lawyer. Click on US Company Formation to be redirected to the list of US States where I offer company formation services to foreign clients.

I also assist clients who wish to form an offshore company in British Virgin Islands (BVI), Turks and Caicos Islands (TCI), Luxembourg, or the Cayman Islands.

Are you seeking assistance for your international business journey?

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