One of the most appealing aspects of entrepreneurship is the freedom it can afford you. After years of working for others, finally getting the opportunity to own your own business and mold it in your own vision is a dream come true for many. While tailoring your own business plan and marketing strategy may seem like focal points at the outset of starting your enterprise, you will also want to come to understand how to structure a business. In many cases, forming an LLC is a logical choice for Wyoming business owners.
Forming an LLC in Wyoming can make sense for a number of reasons. If you find yourself in the nascent days of mapping out your business, getting to know the perks that come with having your own LLC is a wise move to make.
Giving Your Business a Structure
Forming a limited liability company means creating a business entity. While this will have legal and tax repercussions, it can help you in your daily operations as well. When creating an LLC, you will designate members, each of whom will have an ownership stake in the business. You can also use this period to assign specific duties, whether they pertain to management or other pertinent matters.
Furthermore, when creating an LLC you should appoint a registered agent. The role of this individual will be to receive legal documents on behalf of your company. In some cases, this position is occupied by in-house or external legal counsel. Regardless, having an individual tasked with this considerable responsibility can ease some of your burden as a business owner. Let’s face it, you have enough to worry about as it is–having a dedicated party for legal matters is a no-brainer.
The Concept of Limited Liability
Starting your own business comes with a fair amount of risk. You should be prepared to expend significant amounts of time and money when getting your operation off the ground. Though you may have a solid business plan with sound projections, you cannot account for everything, and in reality, sometimes businesses fail. When this happens, bankruptcy can result, and if you have not been proactive about protecting yourself, you can quickly lose more than just your business.
One major draw of an LLC is the concept of “limited liability.” When you form an LLC, you establish your business as its own entity, one that is separate from the personal assets of its members. In other words, should your business incur insurmountable debts, you will not lose your home or 401k as a result.
It is also worth considering that nearly any business can be vulnerable to lawsuits. From slip-and-fall accidents on your premises, to product liability matters, having an LLC can protect your assets against legal judgments.
The Tax Benefits of Forming an LLC
As a business owner, taxes should always be a priority. Falling behind on your taxes, or incorrectly filing a return can have a disastrous impact on your business. It is with this in mind that many businesses outsource their accounting matters, or keep an experienced accountant on staff.
One sizable benefit to forming a limited liability company is its tax status. The Internal Revenue Service (IRS) treats LLCs as what are called “pass-through” entities. What that means is that profits generated by the business “pass through” to the LLC members before they are taxed. In other words, instead of paying taxes on your business’s income, you are only taxed on what you pay yourself. This is a stark contrast to other business structures such as corporations, which can find themselves taxed twice, in a manner of speaking.
Before you launch your business, it is wise to consult with a tax attorney. Informed legal counsel can help you make tax decisions that are smart for your business. Another matter you will want to take care of is obtaining your Employer Identification Number (EIN) from the IRS. Your EIN is compulsory provided you have more than one employee.
Form Your LLC Today with Our Help
If the benefits of an LLC appeal to you as a business owner, you can file your articles of organization with the Wyoming Secretary of State’s office. This document will call for some basic information about you and your business. You will also need to select a wholly unique name that does not match any other LLCs in the state’s database. Also, you will need to provide the contact information for your registered agent. With all of the required information correctly assembled, you can then mail your articles of organization to the appropriate state office location.
There is also a simpler avenue for doing this. At the Corporation Center, we help Wyoming business owners submit their articles of organization online. Using our easy-to-fill web forms, you can complete your documents in just minutes. To learn more, contact us today.