(Newswire.net — July 30, 2021) –Wyoming is not often thought of as a great location to start a business, but the facts speak for themselves and say loudly that the state is one of the best destinations for capital. According to the Tax Foundation, it is the most tax-friendly state in the United States. It does not collect corporate or individual income tax or gross receipt tax, and its sales tax rate is among the top 25% in America. Furthermore, the state has the nation’s fourth-highest rate of new entrepreneurs, offering entrepreneurs a dense network of entrepreneurs to tap into for advice, business opportunities, and support. Startups typically have a hard time surviving past their fifth year. Wyoming tilts the odds a startup’s way: it has one of the best ratios of businesses created to businesses shutdown (1.61) in the country. It’s no wonder that you are thinking about starting a business in Wyoming. In this article, I will explain how to do just that.
Develop a Business Idea
A business must be founded on some compelling value proposition in order to attract and keep customers. Peter Drucker, that giant of managerial thought, believed that a business’ sole purpose was creating and keeping a customer. If your business idea does not offer customers compelling value, there is no reason for them to become your customers, or to make that relationship an ongoing one.
If you offer a compelling value proposition, you will be able to create sustainable competitive advantages over your rivals. For instance, Google used its success with its PageRank algorithm in creating the best search engine in the world, to become the default search engine of much of the planet. Today, “google” is now synonymous with searching the web. You want to be the first, last, and only port of call of your customers.
Choose a Business Structure
Every business is organized according to some business structure. Each business structure comes with its own tax and legal implications. The most common varieties of business structure are the corporation, partnership, S corporation, and sole proprietorship. A Limited Liability Company (LLC) is a business structure permitted under state statute. You can get more information on business structures on the Small Business Administration’s (SBA) Choose a Business Structure webpage.
Get a Business Name
If you are operating as a sole proprietor using your own name, you do not need to register a business name. For example, if your name is John Smith, and you do business as John Smith, you do not need to register a business name. However, if you are operating under a different name, such as John Smith Plumbers, you need to register a business name by filling out an Application for Registration of Trade Name with the Wyoming Secretary of State.
LLCs and corporations need to check with the Secretary of State to see if their preferred business name hasn’t already been taken. You can also perform an online business entity search. You can reserve a business name for 120 days by applying for a name reservation -LLCs and corporations fill out different forms-.
If you will be operating online, you will also need to reserve a domain name.
Finally, you will also need to register your trademark with the U.S. Patent and Trademark Office so you can have exclusive rights to it. Before registration, you will have to conduct a trademark search to see if someone has not already taken your preferred trademark.
Apply for Permits and Licences
If your business will be selling any products in Wyoming, you will have to register with the Department of Revenue. This is so that the state is able to collect taxes from your business. You register by filling out a Sales and Use Tax Licence Application on the Wyoming Internet Filing System for Business or by mailing the application form to the department. The department has a helpful page where it addresses questions about sales tax.
You also need to apply for an Employer Identification Form (EIN) if you employ anyone, regardless of your business structure. You get an EIN from the Internal Revenue Service (IRS). Even if you are not required to have an EIN, there are good reasons for getting one. Banks will often require their business clients to have an EIN if they are to allow them to open a bank account. Other companies may need an EIN so they can process transactions.
Businesses involved in building and construction, the environment, health and safety, and various industries and services, need to obtain business licenses and permits. The Business Permitting and Licensing Guide published by the Wyoming Business Council is an excellent guide to the state’s licensing regulations. You may also need to obtain licenses and permits from the city or county your business will operate in. Consult their websites for more information.
Certain fields require that people working in the industry must have professional and occupational licenses. Wyoming’s Department of Administration and Information has a list of some of the regulatory boards for licensed occupations and professions. If you already know the name of the regulatory board you want to find out about, you can search for that board on the Governor’s Boards and Commissions website. The Business Permitting and Licensing Guide provide information on state agencies that issue professional and occupational licenses.
Wyoming does not levy any corporate or personal income tax. You can consult Wyoming State Business income Tax to learn more about state taxes. Businesses also have to pay employer taxes and federal income tax. You can consult the Tax Guide for Small Business and Taxpayers Starting a Business as you try to discover more information about taxes in Wyoming.
Corporations and LLCs are required to file an annual report with the Wyoming Secretary of State.
Check the Zoning of Your Preferred Business Location
If you will be operating a physical location in the state, you will have to consult the zoning restrictions for that area. Like every other state, Wyoming has zoning restrictions that govern what activities can be conducted in any area within the state. So before committing to a location, check what business activities the city’s ordinances say are permitted in that location. The ordinances can be found in the city’s zoning or planning department.