Starting a Business in Wyoming
A new business in Wyoming is not out of reach. So have you been wondering: how do I start a new business in Wyoming? And more importantly, can I do so no matter what the economic conditions are? Can I start a new business in Wyoming during a recession?
New Business in Wyoming: Pros and Cons
Business Insider named Wyoming as the top state to start a new business in, per an article published in 2016. And this is for the whole nation. Why? The sales tax rate is low. Also, they do not even have any corporate income tax, individual income tax, or gross receipts tax. There is also a thriving startup scene. Wyoming is fourth in the nation for startup companies.
But in 2019, Fit Small Business named Wyoming its number three best state to start a new business in. Keep in mind, of course, that the methods used by Fit Small Business and Business Insider are not the same.
Start a New Business in Wyoming – Top Wyoming Industries
The biggest industries in Wyoming are energy and mining. Both of them have traditionally been strong there. However, the state’s growth and corresponding investment and economic development efforts by its government are increasing economic diversification.
Hence there are more opportunities for Wyoming business owners in all manner of different industries.
Per Wyoming Department of Labor Force Trends, the biggest industries in Wyoming are natural resources and also mining. More top Wyoming industries are construction, educational services, and manufacturing. Yet more Wyoming top industries are public administration and tourism (leisure and hospitality). Technology-related industries are also tops in Wyoming.
Start a New Business in Wyoming – Wyoming Business Ideas
Smart business owners can find new opportunities. Work with the bigger industries in the state. Offer goods or services such as trucking for any industry. Another idea is the development and also distribution of safety equipment. More ideas are food service, and also computer support in areas such as programming and data.
Here is how to start a new business in Wyoming.
Start a New Business in Wyoming – Wyoming New Business Secretary of State Requirements
Register a Business Name to Start a Business in Wyoming
Search for a business name on the Wyoming Secretary of State’s website.
Wyoming corporation names must be unique. The name cannot be in use by another corporation registered in the state of Wyoming. Before filing to incorporate, search online records as well as other registers and catalogs to determine if a name is available. Search a database of registered Wyoming corporations here: Wyoming Secretary of State website.
Corporate Name Reservations
Corporate name reservations are not required to incorporate a business in Wyoming. There is no form to reserve a corporate name available on the official website of the Wyoming Secretary of State.
For questions about reserving a name for a corporation before they file to incorporate, contact the office of the Wyoming Secretary of State.
A Wyoming corporation owner must choose a registered agent who will act as an agent for service of process for the corporation. A registered agent will receive all tax forms and also legal documents for the corporation.
The business owner can choose an adult resident of Wyoming. Or they can opt for a corporation in Wyoming, or a corporate services company as a registered agent. There is a list of corporate services companies that provide registered agent services at Register a Wyoming Corporation on the Wyoming Secretary of State website.
Business Permits and Licenses
The State of Wyoming Economic Development Agency keeps a rather handy PDF guide. It even includes contact information and Wyoming business license types.
Local Permits and Licenses
Check with your local municipality, city or county office or website. See if there may be any local licensing or permit requirements.
For example, in Cheyenne you will need to go to the Licensing and Permitting page on the city of Cheyenne website.
Start a New Business in Wyoming – Wyoming Business Registration
The Wyoming Secretary of State has a New Business Entry Wizard. It lets you file everything electronically to register a business in Wyoming.
The Wyoming Department of Revenue keeps a list of all the taxes for which you should register when starting an LLC in Wyoming or any other entity.
Alliance Virtual Offices offers Wyoming virtual business office space in Casper only. For Cheyenne and Laramie, and other parts of the state, try Regus. Another idea is to ask local business owners. Also try computer user groups for help in this area. Other options may be virtual business office space in nearby states. These are Montana to the north and Idaho and Utah to the west. Utah is also to the south. Another state south of Wyoming is Colorado. Also, Nebraska and South Dakota are to the east.
Set Up Credit for a New Business in Wyoming
Company credit is credit in a small business’s name. It doesn’t tie to an entrepreneur’s individual credit, not even when the owner is a sole proprietor and the sole employee of the company.
Accordingly, a business owner’s business and personal credit scores can be very different.
Since company credit is separate from consumer, it helps to safeguard an entrepreneur’s personal assets, in case of legal action or business bankruptcy.
Also, with two distinct credit scores, a business owner can get two separate cards from the same merchant. This effectively doubles purchasing power.
Another advantage is that even start-ups can do this. Visiting a bank for a business loan can be a recipe for disappointment. But building business credit, when done correctly, is a plan for success.
Personal credit scores are dependent on payments but also additional factors like credit utilization percentages.
But for business credit, the scores actually merely depend on if a business pays its debts on a timely basis.
A small business has to be Fundable to credit issuers and merchants.
For this reason, a business will need a professional-looking website and email address. And it needs to have website hosting bought from a company like GoDaddy.
And also, business phone numbers ought to have a listing on ListYourself.net.
Additionally, the business telephone number should be toll-free (800 exchange or comparable).
A business will also need a bank account dedicated strictly to it, and it needs to have every one of the licenses necessary for running.
Dealing with the IRS
Visit the Internal Revenue Service web site and get an EIN for the small business. They’re totally free. Choose a business entity like corporation, LLC, etc.
A company can get started as a sole proprietor. But they should change to a type of corporation or try forming a Wyoming LLC.
This is in order to lessen risk. And it will make best use of tax benefits.
A business entity will matter when it pertains to tax obligations and liability in the event of a lawsuit. A sole proprietorship means the business owner is it when it comes to liability and taxes. No one else is responsible.
Starting Off the Business Credit Reporting Process
Begin at the D&B website and get a totally free D-U-N-S number. A D-U-N-S number is how D&B gets a business into their system, to generate a PAYDEX score. If there is no D-U-N-S number, then there is no record and no PAYDEX score.
Once in D&B’s system, search Equifax and Experian’s web sites for the business. You can do this at www.creditsuite.com/reports. If there is a record with them, check it for correctness and completeness. If there are no records with them, go to the next step in the process.
By doing this, Experian and Equifax will have activity to report on.
Monitor Your Business Credit
Know what is happening with your credit. Make sure it is being reported and attend to any errors as soon as possible. Get in the practice of taking a look at credit reports. Dig into the particulars, not just the scores.
We can help you monitor business credit at Experian, Equifax, and D&B for 90% less. Update the information if there are errors or the relevant information is incomplete.
So, what’s all this monitoring for? It’s to challenge any inaccuracies in your records. Mistakes in your credit report(s) can be taken care of. But the CRAs typically want you to dispute in a particular way.
Disputing credit report mistakes generally means you specifically spell out any charges you dispute.
A Word about Building Business Credit
Always use credit responsibly! Never borrow beyond what you can pay off. Keep an eye on balances and deadlines for repayments. Paying on time and fully will do more to elevate business credit scores than nearly anything else.
Building small business credit pays. Good business credit scores help a business get loans. Your lender knows the business can pay its debts. They know the company is bona fide. The business’s EIN links to high scores, and creditors won’t feel the need to demand a personal guarantee.
Business credit is an asset which can help with opening a new business in Wyoming for years to come.
Want to start a new business someplace else in America? Then check out our handy guide to starting a business in any state in the country.
Wyoming’s Response to COVID-19
What’s happening with Wyoming? On March 13, Governor Mark Gordon declared a state of emergency. Wyoming suggests small business owners apply with the SBA for low interest loans. They also suggest talking to bankers and other lenders for small business to see if short-term financial arrangements can be made. Entrepreneurs can talk to a Wyoming Small Business Development Center Network staff members. They can provide nontechnical advice and answer questions.