Starting a business begins with an idea. Turning that idea into a reality involves officially registering your business. This straightforward walkthrough explains each phase of setting up your business in Wyoming, from selecting the appropriate structure to obtaining the necessary permits. Whether opening a small shop or launching a tech startup, this information will help you navigate the registration process and concentrate on bringing your business to life.
Related: Starting A Business In Wyoming Checklist
Step 1: Business Structure
The first step in registering a business in Wyoming is selecting a business structure (also called a business entity). Simply put, a business structure refers to how a business is legally organized and registered. This decision should consider factors such as personal liability protection, ease of management, ownership transfer ability, and more.
There are four primary business structures to choose from including the sole proprietorship, partnership, corporation, and Limited Liability Company (LLC). A brief description of each is below.
Related: Comparison of Business Structures
A sole proprietorship is basically an individual who decides to go into business themselves. There are very simple setup requirements, with possibly only the Trade Name registration, and it is the least expensive of the four entities. The ease of startup is a big selling point; however, a major downside to the sole proprietorship is that the owner is personally responsible for all debts and actions of the company. If the business is sued, the owner’s personal assets are potentially at risk. Another potential downside is that the owner will pay self-employment tax on all business profits, which may be more costly than some of the other types of entities.
Related: How to Start a Sole Proprietorship in Wyoming
General partnerships consist of two or more people conducting a business together. Like the sole proprietorship, there is no formal state filing. Also, like the sole proprietorship, the partnership has unlimited liability. If the partnership were to be sued, the partner’s personal assets would be equally at risk. The partnership itself does not pay tax from business income. Instead, profits and losses are passed through to the owner’s personal tax return. This income is subject to self-employment tax.
A corporation is a business structure that is a separate entity from the individual. While corporations are more expensive and difficult to form than sole proprietorships and partnerships, the major advantage is that the corporation provides personal asset protection for the owner(s) should the corporation be sued. The downsides are the compliance requirements and administrative burdens of having a board of directors, annual meetings for directors and shareholders, filling the annual report, appointing a registered agent, and more.
Related: How to Form a Wyoming Corporation
The Limited Liability Company (LLC) is a popular business entity choice because it provides the liability protection of a corporation with the ease of operation of a sole proprietorship. The LLC does not have as many administrative burdens as the corporation and has the greatest tax flexibility of the four entities.
Related: How to Form a Wyoming LLC
Step 2: Business Name
After choosing a business structure, many new businesses in Wyoming then select a business name. This process varies slightly depending on the business structure chosen.
For sole proprietors and general partnerships, the default business name is the owner’s legal name. However, these businesses may register a Wyoming Trade Name, also known as a “Doing Business As” (DBA) name. Trade Name registration is optional in Wyoming, though it’s usually recommended as it may be needed to set up bank accounts or to verify the business with vendors.
For example, a sole proprietor named John Smith who wants to open a bakery in Cheyenne might choose to register the Trade Name “Cheyenne’s Finest Pastries” instead of operating under his legal name “John Smith.” To register a Trade Name, John would need to check the Wyoming business name database with the Secretary of State to ensure his chosen name isn’t already in use or too similar to an existing business name. If available, he would then file the necessary paperwork with the Wyoming Secretary of State.
Corporations and LLCs typically won’t register for a Trade Name as they register their name when filing the formation paperwork. If they want to use an additional name, they can register a Trade Name, allowing them to operate multiple businesses as one legal entity.
Step 3: Federal Employer Identification Number
For many businesses, the next step is obtaining a Federal Employer Identification Number (FEIN), also known as an Employer Identification Number (EIN). This unique nine-digit number, issued by the Internal Revenue Service (IRS), is the federal tax ID for a business.
You need an EIN if:
- Your business has employees
- Your business is structured as a corporation, partnership, or multi-member LLC
Sole proprietorships and single-member LLCs without employees can use the owner’s Social Security Number for tax purposes, they may still choose to obtain an EIN.
Obtaining an EIN is a straightforward process that doesn’t cost anything. The quickest method is to apply online through the IRS website, which typically takes just a few minutes to complete. For those who prefer traditional methods, applications can be submitted by mail or fax using Form SS-4, though these options generally take longer to process.
Step 4: Professional & Industry Licensing
Many professions in Wyoming require official registration and licensing before practitioners can offer their services. This regulation ensures that professionals meet specific standards of competence and ethics in their respective fields. Various state boards oversee these licensing processes.
Some common professions that require licensing in Wyoming include:
- Athletic Trainers – Wyoming Board of Athletic Training
- Physical Therapists – Wyoming Board of Physical Therapy
- Landscapers – Wyoming Department of Agriculture
- Barbers – Wyoming Board of Barber Examiners
- Accountants – Wyoming Board of Certified Public Accountants
- Architects – Wyoming Board of Architects and Landscape Architects
- Engineers – Wyoming Board of Professional Engineers and Professional Land Surveyors
- Real Estate Agents – Wyoming Real Estate Commission
Each profession has its own licensing board with specific requirements, but the Wyoming Business Council maintains a list of professional licensing boards and their contact information.
Step 5: Business Tax Number
The Wyoming Business Tax Number (IBT) is a registration needed by most businesses in Wyoming. The IBT is often referred to as a Wyoming sales tax license, but it is actually used for several state taxes.
Who needs to register:
- Businesses planning to hire employees
- Companies buying or selling tangible personal property
- Manufacturers of goods
The Wyoming Department of Revenue issues the business tax number, which can be registered by filing through the Wyoming Internet Filing System for Business (WYIFS) or by mailing the Sales/Use Tax License Application.
Step 6: Certificate of Exemption
After obtaining their business tax number, many businesses will also want a Wyoming Certificate of Exemption, also known as a resale certificate, which allows businesses to buy inventory without paying sales tax. Instead of paying sales tax, these businesses collect sales tax from the end consumer when the product is sold and send it to the Wyoming Department of Revenue.
Who needs a resale certificate:
- Retailers
- Wholesalers
- Manufacturers who resell their products
Step 7: Local Business Licensing
While Wyoming doesn’t require a state-level business license, many cities and towns in the state have their own licensing requirements. Here are some common types of local business licenses:
- General Business License: A basic permit is required for most businesses operating within city limits and is typically issued by the city clerk’s office. For example, the City of Cheyenne requires a general business license issued by the City Clerk’s Office.
- Contractor License: Usually issued by the city’s building or development department for construction and home improvement businesses. For example, the City of Laramie requires contractors to obtain a license from the Community Development Department.
- Food Service License: The local health department generally requires licensing for restaurants, food trucks, and other food-related establishments. For example, in Sheridan, food-based businesses must obtain a license from the Sheridan County Public Health Department.
- Other Specific Licenses: Some cities may require additional licenses for specific business types, such as liquor licenses or special event permits. For example, the City of Rock Springs requires a special event permit issued by the City Clerk’s Office for temporary business activities.
It’s important to note that licensing requirements can vary significantly between cities in Wyoming, so check with the local city or town government for specific licensing requirements.
Step 8: Local Building & Zoning Permits
When establishing a business location in Wyoming, it’s important to understand and comply with local building and zoning regulations. Here’s an overview of common requirements you may encounter:
Zoning Regulations: Zoning laws determine where different types of businesses can operate within a city or county. Before leasing or purchasing a property, check with your local planning or zoning department to confirm that your intended business use is permitted in that location.
Building Permits: These are required for new construction, renovations, or major changes to an existing structure. They ensure that any work done complies with local building codes and safety standards. Before beginning any work, you’ll typically need to submit detailed plans to your local building department for review and approval.
Certificate of Occupancy: Many Wyoming municipalities require a certificate of occupancy before a business can begin operating in a building. This document certifies that the building is safe for occupancy and complies with all relevant codes and regulations.
Home-Based Business Permits: If you’re planning to run a business from your home, you may need a special permit.
Signage Permits: Many localities have specific regulations about business signs, including their size, placement, and illumination. You may need to obtain a permit before installing any exterior signage for your business.
These requirements vary significantly between different cities and counties in Wyoming, and it’s a good idea to contact your local planning, zoning, or building department early in your business planning process.
For only $99, you can save a lot of time and know your business complies with local, state, and federal requirements.