Updated: Dec 12, 2022
Deciding how you want to set up your business is a big decision. If you live in Wyoming, there are substantial benefits to setting up your business as an LLC. Still on the fence? Consider these benefits of setting up your business as an LLC.
1. When you set your business up as an LLC, it limits your personal legal and financial liability.
Your financial success is tied to your company’s–but that does not necessarily mean that you have to let your finances crash and burn if your business goes under, nor do you want to bear personal legal liability for the actions of your employees. When you set up an LLC, you create the business as an entity separate from yourself. That means that if legal or financial problems hit, your personal financial status will not be impacted. While you are still legally liable for your personal actions, having an LLC means that you will not be legally liable for actions committed by other people within the company.
2. In Wyoming, you won’t pay state income tax on an LLC.
State income taxes can make a substantial dent in your finances–but not when you choose to set up an LLC. In Wyoming, LLCs have never been hit by state income taxes, which means you can build more revenue without having to face the commitment to the state.
3. An LLC can build income and revenue on its own, separate from your finances.
As a business owner, you want to keep your personal finances separate from the business’s finances–not just its financial failures, but some of its financial successes, as well. Not only does setting up your business as an LLC protect you if something goes wrong with your business, financially speaking, it also protects your business if something hits your personal finances harder than anticipated. You can also build the business’s net worth separately, which means you will have a better idea of the worth of the business.
4. An LLC in Wyoming has relatively low startup costs.
In other nearby states, including Nevada, you may find that having an LLC brings with it a number of startup costs and fees. In Wyoming, those fees are relatively low, and you won’t have to worry about the cost of a business license or other expenses that could put a strain on your finances before you even have a chance to get your business off the ground.
5. An LLC makes it easy to transfer or share business ownership.
Unless you set your business up as an S-Corporation, which has a maximum of 100 owners, an LLC allows you to set up your business with unlimited owners. That means you can have as many board members or partners as you like. Not only that, transfer of ownership with an LLC is simple. That makes it easy to sell your business, transfer it to another party when you’re ready to retire, or pass it on to your heirs after you die. You can also easily bring in another owner if you’re ready to expand the business and want to take on a partner.
6. An LLC lasts permanently.
Your LLC’s life is different from yours. That means that if you die, your LLC does not die with you. Instead, it continues generating income for other owners or your heirs even after your death. There’s no expensive transfer of ownership or difficult legal dance to get things operating smoothly again. In many cases, an LLC can continue smoothly without you–which can be a substantial relief to many business owners.
Are you ready to set up an LLC for your business? Want to learn more about what it means to set up an LLC in Wyoming and how it could impact your business over time? Contact us today to learn more about how an LLC can help you reach your goals for your business.