Wyoming LLC Taxes

Wyoming’s reasonable cost of living and the strong job market has made it a beneficial place to start a business in. But with more business owners choosing to start their ventures in the state, many may find it challenging to understand the business taxes involved. 

Regardless of the size of your business, if you operate a limited liability company (LLC) in Wyoming, you will need to ensure you stay up to date on your finances and pay federal, state, and local taxes. Our guide will help you understand which taxes you will need to pay for your Wyoming LLC.

Recommended: Schedule a free consultation with an accountant to stay on top of your taxes. 

Wyoming LLC Taxes Owed

LLCs benefit from pass-through taxation, meaning the business’s profits pass through to the members’ individual tax returns. As a result, your LLC does not pay taxes to the federal government or the State of Wyoming. Instead, LLC owners must pay taxes on their portion of the income made from the LLC. 

In Wyoming, LLC owners can expect to pay the following taxes:

Federal Taxes

Regardless of where your business is located, if you have an LLC within the United States, you will have to pay federal income taxes and federal self-employment taxes. These taxes are reported on your Form 1040.

Federal Self-Employment Taxes

It doesn’t matter if your LLC is a single-member LLC or a multi-member LLC; all LLC members must pay self-employment taxes on their share of the LLC’s profits. The self-employment tax rate is 15.3%. 

Federal Income Taxes

Your federal income taxes will depend on your tax bracket, and the cutoffs for individual tax brackets, as well as the percent owed, will change each year. 

Wyoming State Taxes

Each state has its own laws dictating how individuals and businesses are taxed. For instance, Wyoming does not have a state income tax rate.

Wyoming Income Taxes

As mentioned above, Wyoming does not have a state income tax. Your business will still have to pay federal income tax, but your profits will not be taxed by the state.

Wyomings’s 0% tax rate is seen as a business-friendly policy which has led to it becoming a popular state to start new businesses in.

Wyoming Sales and Use Tax

Wyoming’s state sales tax rate is 4%. Depending on where you do business, the sales tax may be higher due to local sales tax rates. The average local sales tax rate is 1.36%, so make sure you know whether your county or city has its own sales tax rate before operating your LLC there.

Register for a Sales and Use Tax License

If your business sells taxable goods or services, you must for a Sales and Use Tax License with the Wyoming Department of Revenue.

Visit the Forms page on the Wyoming Department of Revenue’s website to see the application and more information on the license.

Additional State Taxes

Wyoming’s Department of Revenue oversees the collection of various taxes that businesses may have to pay depending on their location, industry, and number of employees. 

These are a few taxes that LLCs in Wyoming may be responsible for paying:

  • Mineral Tax
  • Alcohol Tax
  • Tobacco Tax

To learn more, check out the Wyoming Department of Revenue website.

Wyoming Local Taxes

The local laws and ordinances in one city or county in Wyoming are likely to be quite different in another. Regardless of where you live in Wyoming, we recommend you check with your local jurisdiction and ensure that your business obtains the proper local permits and follows any local regulations that may impact your business’s operation.

Wyoming LLC Compliance

You must obey Wyoming’s state and local laws to maintain your business's compliance and good standing. While LLCs technically do not file taxes with the state, Wyoming businesses must still file an annual report each year with the state.

Wyoming LLC Annual Report

All Wyoming LLCs must file an annual report with the Wyoming Secretary of State each year. Filing can be done by mail or online and typically costs $60 for the filing fee. If your LLC has more than $250,000 in assets, then your filing fee will increase depending on the amount. If your filing fee is greater than $500, you will be required to file by mail.

Each LLC’s annual report will be due the day before the month the LLC was approved in. For example, if your LLC was approved in March, your annual report would be due by February 28th every year.

If your LLC’s annual report has not been filed within 60 days after your due date, the State of Wyoming can intervene and shut down your LLC at any time.

For more information, check out our Wyoming LLC Annual Report guide.

LLC taxes are complex. While our guide can provide you with important information, we recommend you schedule a free consultation with an accountant to ensure that you handle your business taxes correctly.