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Wyoming LLC
Advantages and Disadvantages



Wyoming LLC and Asset Protection



Wyoming LLC:

A Wyoming LLC meets the statutory requirement of establishing an approved corporate form of organization and a legal or permanent presence within the state by way of submission of a Wyoming LLC formation application documents to the state of Wyoming. One advantage of creating a Wyoming LLC is that an llc corporation creates a corporate veil between the personal assets of llc members such as bank accounts, real estate and veheicles and the future potential llc corporation liabilities related to trade or creditor actions. Incorporation as a Wyoming LLC is unrestricted in terms of ownership, as opposed to incorporation registration as a subchapter S corporation, which only allows for a maximum of 75 shareholders.

Should I form a Wyoming LLC?

An Wyoming LLC satisfies a necessary condition of your business planning developement in that it meets the requirement that you establish a legal form of organization in order to gain the statutory benefits and protection available in Wyoming to your LLC. Your Wyoming LLC establishes a legal presence within the state, which you can use either as a platform for in-state operations or by registering your Wyoming LLC via your agent's physical address in order to meet the purely statutory requirement for tax and filing purposes absent an in state operation.

Advantages and Disadvantages Wyoming LLC

Advantages of Limited Liability Company
  • Limited Liability: Owners of a LLC have the limited liability protection of a corporation.


  • Flexible Profit Distribution: Limited liability companies can select varying forms of distribution of profits. Unlike a common partnership where the split is 50-50, LLC have much more flexibility.


  • No Minutes: Corporations are required to keep formal minutes, have meetings, and record resolutions. The LLC business structure requires no corporate minutes or resolutions and is easier to operate.


  • Flow Through Taxation: All your business losses, profits, and expenses flow through the company to the individual members. You avoid the double taxation of paying corporate tax and individual tax. Usually, this will be a tax advantage, but circumstances can favor a corporate tax structure.


Disadvantages of Limited Liability Company


  • Limited Life: Corporations can live forever, whereas a LLC is dissolved when a member dies or undergoes bankruptcy.


  • Going Public: Business owners with plans to take their company public, or issuing employee shares in the future, may be best served by choosing a corporate business structure.


  • Added Complexity: Running a sole-proprietorship or partnership will have less paperwork and complexity. A LLC may federally be classified as a sole-proprietorship, partnership, or corporation for tax purposes. Classification can be selected or a default may apply.


By Wyoming and other state law in order to proceed with forming a llc, you need to prepare a written abstract detailing your llc purpose, the names of your initial Wyoming LLC members, the name and address of your Wyoming registered agent, the details of which will be introduced into the body of your LLC operating agreement and related Wyoming LLC formation documents assembled for application to the state of Wyoming.

Wyoming’s Business Tax Climate Ranks 7th

Wyoming ranks 7st in the State Business Tax Climate Index, which measures the impact on business of five major elements of the tax system: the percentage of income taken by all taxes, the individual income tax rates, the corporate income taxes, the sales tax rate, and the complexity of the tax system. Neighboring states ranked as follows: Montana (17th), South Dakota (1st), Nebraska (35th), Colorado (8th), Utah (26th), and Idaho (31st).

Wyoming’s State/Local Tax Burden among the Nation’s Bottom Ten

For most of the past 14 years, Wyoming’s tax burden has experienced a steady decline. Estimated now at 8.9% of income, Wyoming’s state/local tax burden percentage stands at 44th nationally, well below the national average of 10.0%.

Wyoming Levies no Personal Income Taxes

Wyoming levies no individual income taxes, joining six other states with the same policy. This makes the tax environment in Wyoming very competitive compared to other states.

Wyoming Levies no Corporate Income Taxes

The state of Wyoming, in addition to collecting no personal income taxes, collects no corporate income taxes as well. Only four other states (Nevada, Texas, South Dakota and Washington) join Wyoming in levying neither income tax.



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