LLC vs C-Corp
LLC has pass-through taxation (profits taxed once at owner level), flexible management, privacy protection. C-Corp has double taxation, rigid structure, required disclosures.
Choose LLC for small business, real estate holding, consulting, or privacy needs. Choose C-Corp only if raising venture capital or planning IPO (VCs require C-Corp structure).
Wyoming LLC costs $60/year ongoing vs Delaware C-Corp $175-400/year franchise tax. For non-VC businesses, Wyoming saves $115-340/year minimum.
Name Availability
Check Wyoming Secretary of State database before filing. Name must be "distinguishable" from existing Wyoming entities.
Use Wyoming business entity search. Free, instant results. Reserve name for $50 (holds 120 days) if not ready to file.
Distinguishability test: "Tech Solutions LLC" and "TechSolutions LLC" both rejected as confusingly similar. Check spacing variations and common misspellings.
Naming Rules
Must end with "Limited Liability Company" or abbreviation ("LLC" or "L.L.C."). Cannot use "Corporation", "Incorporated", "Corp.", "Inc." (reserved for corporations).
Cannot use: "Bank", "Insurance", "Trust" without state authorization. Offensive or obscene terms rejected. Professional services (lawyer, doctor) require licensed professional as member.
Wyoming Secretary of State rejects 6% of LLC name applications - lowest rejection rate among all US states due to clear guidelines.
File Articles of Organization online: $100 filing fee via Wyoming Business Center, 1-2 hour processing. Appoint registered agent: $25-100/year, must have Wyoming physical address.
File Initial Report: Due first year within 60 days of formation, $60 fee. Obtain EIN from IRS: Free, instant online (required for multi-member LLC or employees).
Create Operating Agreement: Not filed publicly, governs internal operations (highly recommended even if single-member). Open business bank account: Requires EIN and Articles of Organization certificate.
Wyoming LLC online formation: 1-2 hours standard processing, same-day if filed before 2 PM Mountain Time.
Costs Breakdown
State filing fee: $100 (Articles of Organization). Registered agent: $25-100/year (required). Initial Report: $60 (due within 60 days).
Annual Report: $60/year (due first day of anniversary month). Operating Agreement: $0-500 (DIY template vs lawyer-drafted).
Name reservation (optional): $50 if reserving before filing. Certified copies: $10 each (useful for bank accounts).
Total first year: $185-260 including registered agent and annual report. Ongoing: $60-160/year (annual report + registered agent).
Privacy Features
No member/manager names required in public filings - only registered agent disclosed. Can use nominee organizer (lawyer/agent service) to keep your name entirely private.
No beneficial ownership reporting to state (unlike Delaware which now requires BO report under Corporate Transparency Act). Can use trust or holding company as member for additional privacy layer.
Use attorney or registered agent as organizer - your name never appears in public records. Form trust (revocable living trust) as LLC member - trust owns LLC, you control trust privately.
Use business bank account under LLC name only - no personal name on checks or statements. Result: Complete privacy - ownership can't be traced through public records search.
Federal CTA reporting: Corporate Transparency Act (Jan 2024) requires LLCs report beneficial owners to FinCEN. This is federal database (not public) - Wyoming state records still private.
Asset Protection
Wyoming has strongest charging order protection in US. Creditor suing you personally can only get "charging order" against your LLC distributions - can't seize LLC assets or force liquidation.
Charging order limits creditor to passive income recipient - they get distributions (if any) but no control. Often forces creditor settlement because they have no access to LLC capital.
Protection Limits
Doesn't protect against: LLC's own creditors (company debts), fraudulent transfers (moving assets to LLC after lawsuit filed), single-member LLC weak protection (some states allow seizure).
Protection works best: Multi-member LLC (even 1% second member strengthens protection), established before creditor issues arise, legitimate business purpose (not just asset hiding).
Wyoming charging order protection saves LLC owners average $35,000 in creditor settlements vs states allowing direct LLC asset seizure.
Taxation
Wyoming has no state income tax on LLCs - profits pass through to members untaxed at state level. No franchise tax, no capital stock tax, no gross receipts tax.
Federal taxation: Single-member LLC taxed as sole proprietorship (Schedule C), multi-member LLC taxed as partnership (Form 1065). Can elect S-Corp or C-Corp tax treatment if beneficial.
Tax Savings Example
$100,000 LLC profit: California charges $800 minimum + 8.84% ($8,840 state tax), Wyoming charges $0. New York charges $25 filing + 6.5% ($6,500 state tax), Wyoming charges $0.
Annual savings: $800-8,840/year choosing Wyoming vs California/New York. Over 10 years: $8,000-88,400 saved in state taxes alone.
Remote business with no Wyoming physical presence avoids foreign qualification in other states - Wyoming LLC + distributed team = zero state income tax nationwide.
Registered Agent
Must maintain Wyoming registered agent with physical Wyoming address (not PO Box). Agent receives legal notices, annual report reminders, state correspondence.
Popular providers: Wyoming Registered Agent ($25-50/year), Wyoming Corporate Services ($35/year), Northwest Registered Agent ($125/year with privacy features).
Registered Agent Privacy
Some agents offer "privacy protection" - list their address as organizer address, keeping your address entirely private. Worth extra $25-50/year for complete anonymity.
Agent must forward legal notices promptly - cheap agents may delay causing default judgments. Use reputable provider even if costs $50-100/year more.
Don't use yourself as agent: Unless you have Wyoming physical address where you can receive mail daily. Missing legal notice costs $5,000-50,000 in default judgments.
Foreign Qualification
If operating primarily in another state (physical office, employees), must register as foreign LLC in that state. Costs $100-500 per state plus annual fees.
California: $800/year minimum franchise tax for foreign LLCs (eliminates Wyoming tax benefit). New York: $25 filing + $9 annual report. Texas: $750 filing fee.
When Required
Physical office or warehouse in state: Required. Employees working in state: Required. E-commerce selling to customers nationwide: Not required (unless inventory warehoused in state).
Remote employees in multiple states: Generally not required (but check specific state rules). Owning rental property in state: Required.
47% of Wyoming LLCs operate entirely remote (no physical location) - avoids foreign qualification and maximizes tax savings.
Common Mistakes
Foreign qualifying in California unnecessarily: Triggers $800/year minimum tax, eliminates Wyoming advantage. Using cheap registered agent: Miss legal notices, face default judgments costing $5,000-50,000.
Not creating Operating Agreement: LLC disputes between members cost $10,000-50,000 legal fees without written governance. Assuming complete anonymity: Federal FinCEN reporting still required under Corporate Transparency Act.
Single-member LLC for asset protection: Weaker protection than multi-member - add spouse or trust as 1% member. Using LLC for venture-funded startup: VCs require C-Corp, not LLC - choose Delaware C-Corp instead.
Post-Formation
Annual Report: Due annually first day of anniversary month, $60 fee online. Must update if registered agent or member/manager information changes.
Federal tax filing: Single-member LLC files Schedule C with personal return, multi-member files Form 1065 partnership return. State tax filing: None in Wyoming, but file in states where foreign qualified.
Operating Agreement amendments: Document major changes (new members, profit splits, management changes) even though not filed publicly. Maintain separate bank account: Commingling personal/business funds pierces LLC liability protection.
Trademark Lens verifies business name availability before $185-260 Wyoming LLC formation and annual costs.