Starting a business in Wyoming is exciting, but before you can begin that entrepreneurial journey, you’ll need to get a federal tax ID number and a Wyoming state tax ID number. Wyoming has a number of advantages for prospective business owners. It’s a welcoming state for small businesses, with 65,462 small businesses in the state. Together, they employ 137,665 employees, or 62.6 percent of the workforce. In Wyoming, the rate of economic growth is increasing. Notably, there is also no state-level corporate income tax on corporations, which makes it an outlier in the United States, as most states impose some kind of state-level corporate income tax.
Steps to Obtaining a Tax ID (EIN) Number and Registering a Wyoming Business
- Forming a Business in Wyoming
- Federal Tax ID (EIN) Number Obtainment
- Wyoming State Tax ID Number
- Localized Licenses and Permits in Wyoming
One of the first decisions you’ll make for your business is deciding how to structure it. Your business structure will determine many aspects of your business’s operations, including how it’s taxed and how much liability you’ll face. The main options to choose from are corporation, limited liability company (LLC), sole proprietorship, and partnership.
- Sole proprietorships. Sole proprietorships are relatively easy to start, since they’re designed for individual business owners, especially those of small businesses. Taxes are simple; you’ll owe taxes as an individual on any money you make in the business. However, you’ll be exposed to more liability; you’ll take on any business debts as your own, and could be held responsible for legal issues that come to the business.
- Partnerships. Partnerships are much like sole proprietorships. The only real difference is the number of people involved, since partnerships require two or more partners working in tandem.
- Limited liability companies (LLCs). Limited liability companies (LLC) are the next step up in terms of complexity, since they serve as separate legal entities. As the name suggests, they provide their owners with some degree of liability protection; they can take on debts and hold assets on their own, and can be held responsible for their actions for most legal purposes. Even though in most cases you will need to obtain a Tax ID for an LLC, they are always considered pass-through entities in terms of taxes. They won’t owe taxes on income they generate, but you’ll pay taxes as an individual on any money you make from the business, including profits, salary, and dividends. In Wyoming, you’ll be required to file an annual report with a small fee.
- Corporations. Corporations are much more complicated, mostly because they’re subject to many rules and regulations due to their ability to issue public shares. Corporations are treated as separate legal entities like LLCs, and provide their owners with significant legal protection. Corporations will owe federal-level taxes on all eligible income, in addition to their owners paying taxes as individuals, resulting in double taxation. However, in Wyoming, there is no state-level corporate income tax, representing a break for corporate owners.
As you can see, there are advantages and disadvantages to every business type, so you’ll need to choose the structure that’s best for your unique situation. When you’ve decided on a business structure, you’ll want to get a federal tax ID number and Wyoming state tax ID number as soon as possible.
You’ll need to get a federal tax ID number for your business as soon as possible. This is 9-digit number that serves as a unique identifier for your business, not unlike the way a social security number (SSN) serves as a unique identifier for individuals. It’s assigned to your business on a federal level, and is sometimes known as an employer identification number, or EIN.
This is a required number for any business that has multiple members, like a partnership or a corporation. It’s also necessary, as the name suggests, for any business that hires employees. Most financial institutions will require your business to provide an EIN when applying for financial products as well, such as a business bank account, a loan, or a line of credit. And you’ll need one when applying for business licenses and permits.
The fastest and most convenient way to obtain your federal tax ID number is to use our federal tax ID number obtainment services. All you’ll need to do is apply online, filling out our short questionnaire by answering a few key questions about your business. Once you’re done with that application, you’ll receive your federal tax ID in an hour or less.
Many businesses will also be required to obtain a Wyoming state tax ID number. This number is a unique identifier like your federal tax ID number, but it applies at the state level. This is a distinct number, however, used for different purposes. You’ll need a Wyoming state tax ID number if you’re going to hire employees in the state of Wyoming, if you’re selling taxable goods and services in the state of Wyoming, or if you’re going to owe excise taxes on regulated products.
If you need a Wyoming state tax ID number, you’ll first need to obtain your federal tax ID number. Once you have that, you’ll be able to take advantage of our Wyoming state tax ID number obtainment services. Through this service, all you’ll need to do is answer a few questions about your business using our online questionnaire. When you’re done, you’ll receive your Wyoming state tax ID number in just 4 to 6 weeks.
Many businesses in Wyoming will also need a license, permit, or other form of certification before they can legally begin operations. However, there isn’t a general business license that all businesses will need. Licenses and permits are regulated at both the state and local level, so businesses in different cities may require an entirely different set of licenses and permits. These may also vary by industry and by company size. Because these regulations vary so much, your best bet is to contact your local Chamber of Commerce and determine which forms of certification your business may need. If you need to fill out any applications, make sure you have your federal tax ID number on hand.
Once you have your federal tax ID number and Wyoming state tax ID number, you’ll likely be able to begin operations and start generating revenue. Make use of our federal tax ID number and Wyoming state tax ID number obtainment services to get those numbers faster and more conveniently today!