Wyoming LLC Pros and Cons [What You Need to Know]

If you’re considering starting a US LLC, you might find a Wyoming LLC to be a great choice.

In this article, we cover some of the top Wyoming LLC pros and cons to help you determine if a Wyoming LLC would make sense for you or your business.

If it does seem that a Wyoming LLC is a good fit for you, we’ll also walk you step-by-step through the process of starting a Wyoming LLC and then how to use it to open a US business bank account.

Read on to find out if you’re eligible to start a Wyoming LLC, the benefits of having a Wyoming LLC, and the most common challenges you’ll face in the process.

Wyoming LLC Pros and Cons

Wyoming LLC pros and cons differ depending on your particular situation. Whether or not a Wyoming LLC is right for you and your business depends on the type of business you have, where the business operates, and where you live. Read on to find out whether it is a good fit and how to navigate the process of registering a US LLC in Wyoming. We detail these variables and more below.

Here’s a look at everything we’ll cover in this article…

Wyoming LLC Pros

There are a lot of reasons why you might want to register a foreign-owned US LLC in Wyoming.

Of course, this may vary depending on the type of business you operate, where you’re based, and where your customers are located.

But, generally speaking, a US LLC in Wyoming can be a very good option for foreign business owners.

Having a US LLC, in general, is great. It gives you access to the widest variety of payment processing services and the best rates. You can also gain access to the US banking system and the many benefits that come with it.

And since each US state is able to make many of its own rules, you can gain even more perks by setting up a US LLC specifically in Wyoming.

Wyoming LLCs are best known for being a tax-efficient structure for non-resident businesses with no US business activities. But beyond this, there are several other benefits to having a Wyoming LLC that you won’t be able to find anywhere else in the world.

Here are some of the pros of registering a Wyoming LLC.

Benefits of Registering a US LLC in Wyoming:

1. Competitive fees

2. Minimal formalities

3. Anonymous LLCs

Here’s a closer look at the above Wyoming LLC pros:

Competitive Fees

First of all, registering a Wyoming LLC is cheap.

In some states, foreign-owned US LLCs cost between $300 to $3000 to register.

Meanwhile, in Wyoming, you’ll only be $100 out of pocket to register your foreign-owned US LLC in the state.

The same goes for the ongoing maintenance of the LLC. In Wyoming, the annual report license tax costs you just $50 a year. This fee ensures your LLC can remain operating year after year.

Compare this to California, where all LLCs have to pay an annual $800 tax (along with a $20 filing fee). That goes even if the LLC isn’t making any money or conducting business!

So, whether you’re a new or well-established business, registering your LLC in Wyoming can save you a lot of money in both the short and long term.

Minimal Corporate Formalities

Not only can a Wyoming LLC save you money, but it can also save you a lot of headaches.

That’s because this is one of the easiest jurisdictions to form and maintain an LLC.

First off, to register the LLC you can do so in-person or entirely online! In fact, you can do so even from outside of the US.

On top of that, Wyoming has no specific restrictions on foreign-owned businesses and how they have to operate.

Overall, bureaucracy is kept to a minimum here. US LLCs registered in Wyoming are not required to submit an operating agreement to the state. And there is no requirement for owners of a Wyoming LLC to visit the state every year. Unlike in some countries.

This allows companies to focus more on running their businesses instead of spending time and money on unnecessary travel.

Anonymous LLCs

Another unique benefit of Wyoming LLCs for foreign business owners is the ability to keep ownership information anonymous.

In other words, member, owner, shareholder, and other representative information does not have to be publicly listed as it would in many other places.

The only name the state will have in connection to the company is a registered agent that is named the point of contact. All the rest of the ownership information is kept private.

So, as you can see, there are many benefits to registering a Wyoming LLC as a foreign business owner.

That said, before registering a company here, it’s important to understand both Wyoming LLC pros and cons. That way, you can make an informed decision on whether or not registering your US LLC in Wyoming is the right place for you.

So now let’s take a look at the cons of registering an LLC in Wyoming.

Wyoming LLC Cons

If you’re thinking about registering a Wyoming LLC because of the many benefits it can offer, it’s also important to know the biggest con to incorporating here…

The main reason why some foreign business owners choose not to incorporate here is because Wyoming does not offer asset protection to out-of-state foreign-owned US LLCs.

In other words, if you have a foreign-owned US LLC and you live and work outside of Wyoming, your personal assets will not necessarily be protected in the case of litigation.

Of course, this will depend on the laws pertaining to where you and your business are based.

But, before registering your LLC in Wyoming, you must understand whether or not you are protected. That way, you can make sure you’re making the right decision for yourself and your company.

Now, understanding Wyoming LLC pros and cons is just the beginning.

The next step to deciding whether or not a Wyoming LLC is right for you is to understand the steps you need to take to register a US LLC.

And of course, whether or not you can meet the requirements.

So, with that said, let’s look at how a foreign business owner can register a US LLC in Wyoming.

How Can a Foreign Business Owner Register a US LLC in Wyoming?

Not surprisingly, understanding the Wyoming LLC pros and cons isn’t the only step you need to consider. There are specific steps that need to be taken when registering a foreign-owned US LLC in Wyoming.

So, to ensure you’re on the right path, let’s look at the step-by-step process you will need to follow to successfully register a US LLC in Wyoming…

Step 1: Confirm an LLC Name

The first and most important step in registering an LLC in Wyoming is choosing a company name. Here are the guidelines you need to follow when registering the name of your US LLC in Wyoming:

Company name must include “LLC”, “L.L.C”, or “limited liability company”
Company name cannot be associated with a government agency name (Treasury, FBI, etc)
Proper licensing is a requirement if the words doctor or lawyer are used

You’ll also need to confirm whether or not the name is available in the state of Wyoming. You can do this by searching your preferred company name through the Business Entity Search on the Wyoming Secretary of State website.

Once you’ve verified the company name is available, you’ll need to identify a registered agent to represent your company on your behalf. More on this below.

Step 2: Identify a Registered Agent

If you prefer not to name yourself as the registered agent because you’re not a resident of Wyoming, don’t worry. You can name another individual or business entity to act on your LLC’s behalf.

But, whoever you choose must be a resident of Wyoming.

It’s important to choose a registered agent carefully since they will be your LLC’s point of contact. More specifically, they will be responsible for communicating and receiving legal documents between the company and the state.

Step 3: File the Articles of Organization

To successfully register your US LLC in the state of Wyoming, you’ll need to complete the Articles of Organization document.

This document outlines the name of your LLC, the name and address of the registered agent, the purpose of the LLC, the LLC’s mailing address, and the address of where the company does business.

In addition to filing the Articles of Organization, your registered agent will also need to fill out a consent form. More specifically, the Consent to Appointment by Registered Agent form.

You can file these two forms when registering your LLC.

Step 4: Create an LLC Operating Agreement

Although this is not a requirement of the state of Wyoming, we still highly recommend businesses create an operating agreement.

An operating agreement is a legal document outlining the detailed information of your LLC. Including the day-to-day operations, the purpose of the business, and the contact information of all owners.

That said, the true purpose of an operating agreement is to confirm the ownership details and operating duties of each owner. Not to mention, to ensure there is a legally binding document in place.

So, if your company has multiple owners, we highly recommend drafting up an operating agreement. That way, all owners will be aware of the company’s structure.

Step 5: Request an EIN from IRS

The last step of registering your US LLC in the state of Wyoming is to request an Employer Identification Number (EIN) from the IRS. This is a requirement to identify your LLC for tax purposes. It is also a requirement to open a business bank account in the US.

To get an EIN for your US LLC you just need to be able to provide the proper information and fill out a form. Fortunately, you can do this completely online. If approved, you will typically have your EIN within 4 weeks of applying.

Once you have your EIN you will have everything you need to register your LLC and then you’ll even be able to open a business bank account in the US.

US LLC is Registered in Wyoming… What to Do Next?

You’ve reviewed the Wyoming LLC pros and cons, followed the proper steps to register your company, and are now ready for what’s next…a US business bank account.

But why do you need a US bank account?

Well, as a foreign-owned US LLC it’s crucial you keep all personal and professional banking separate so you can manage your LLC’s financials properly. But also, so you can take advantage of the many unique business benefits banking in the US has to offer.

Of course, like banking anywhere, opening accounts in the US doesn’t come easy. This is especially true for foreign-owned US LLCs.

Your best bet to successfully open a US business bank account is to know which branch, bank, and even banker will accept your client profile. But, more specifically, your type of business. And, this can be a difficult process to navigate as not all US banks will open accounts for foreign businesses.

But, with the right information and some guidance, you can open a US business bank account for your foreign-owned US LLC. Not to mention, unlock many benefits you can’t access anywhere else in the world. Including low-cost payment processing, attractive financing, and profitable rewards from US credit cards.

Fortunately, we help our GlobalBanks USA members open business bank accounts for their US LLCs in the US on a regular basis.

And, our GlobalBanks USA members get direct support from our team of banking experts where we answer difficult banking questions and suggest specific banks that match your specific client profile.

We also make direct introductions to banks in the USA to help start the process of opening a bank account for your US LLC.