Wyoming LLC Taxes
After forming a Wyoming limited liability company (LLC), you will need to ensure that you understand all of the tax responsibilities that your business will need to comply with at the federal, state, and local levels.
This article will cover the different categories of Wyoming LLC taxes that your business needs to consider, as well as a step-by-step process on how to properly file your taxes as an LLC in the state.
Recommended: Schedule a free consultation with 1-800Accountant to stay on top of your taxes.
How Is an LLC Taxed in Wyoming?
Taxation in Wyoming isn’t applied in the same way to all LLCs – instead, it varies depending on a number of factors, such as an LLC’s nature, locality, and tax election.
While LLCs typically benefit from pass-through taxation by default, they can elect to be taxed as one of the following:
- C Corporations: The LLC is treated as a separate entity to its owners. Wyoming is one of the few states that does not have a personal income tax or a corporate income tax. This means that the members of a Wyoming LLC only pay federal income tax on their LLC income, and no Wyoming state income tax.
- S Corporations: In return for paying owners a “reasonable salary,” the LLC’s remaining profits are distributed among members without a need to pay FICA or self-employment taxes on them.
The following sections go into the various tax responsibilities of your LLC at local, state, and federal levels in Wyoming to help you ensure your LLC navigates them effectively.
Wyoming Local Taxes
Wyoming has a variety of local taxes that depend on the location of your LLC. Different cities and counties have different tax laws and rates.
Some of the common local taxes that you may encounter include:
Sales and Use Taxes
If you sell goods or services in Wyoming, or to customers within the state, you will likely be required to collect sales tax.
Some counties and municipalities in Wyoming may require local sales taxes, ranging from 0% to 2%. The local sales tax rates are determined by the voters in each jurisdiction and may vary depending on the type of product or service.
In Wyoming, there are four types of local entities that can impose these taxes:
- Cities and towns
- Special purpose districts
- Resort districts
Note: To easily find the sales and use tax rates for any location in Wyoming, use the Department of Revenue’s Rate Lookup tool.
The applicable local sales and use tax rates for your LLC can be determined using the following criteria:
- Local Sales Tax: Determined by the physical location where the sale occurs. The tax rate is often based on the city or county in which your LLC operates and makes sales.
- Local Use Tax: Determined by the use, storage, or consumption of tangible personal property or services in Wyoming if the sales tax was not paid at the time of purchase.
In Wyoming, there are also unique scenarios where these standard guidelines might vary. These exceptions often apply to specific types of businesses or transactions.
Prescription drugs and groceries are exempt from sales tax in Wyoming. The use tax rate is the same as the sales tax rate of the county where the purchaser resides, and applies to purchases made outside of Wyoming that are used, stored, or consumed within the state.
Businesses involved in e-commerce, providing digital goods or services, or those engaged in large-scale manufacturing or interstate commerce may encounter different tax rules.
Furthermore, if your business offers services across various jurisdictions or sells items that are subject to special tax rates (like alcohol, tobacco, or fuel), you might also be subject to unique local tax regulations.
Wyoming does require property tax for business owners/LLCs, but the amount and rate are different depending on the value and location of the property.
If your LLC owns property in Wyoming, you should expect to pay taxes at the following rates:
- Property tax is assessed at 11.5% for industrial property and assessed at 9.5% for commercial, residential and all other property.
- Property tax rate is determined by the county assessor and the local governments where the property is located.
In Wyoming, property taxes are primarily managed and collected at the local level, not at the state level. This means you would pay your property taxes to the local county assessor’s office in the county where the property is located. Each county in Wyoming has its own procedures for property tax collection.
Find out your property tax amount and due date. You can contact your county assessor’s office for this information. Property taxes in Wyoming are generally billed by Sep. 1 each year and can be paid in full by Dec. 31 or in two installments. For example, if you live in Lincoln County, you can pay online through its iTax portal.
Note: You can find the links to pay online for each county on the Wyoming Department of Revenue’s Property Tax Division - Entity Contacts page.
Recommended Service: Schedule a free consultation with 1-800Accountant to ensure your business remains legally compliant.
Wyoming State Taxes
Every state has its own regulations and rules that dictate how it taxes individuals and businesses. Below is a list of the most relevant state-level taxes for LLCs in Wyoming.
Wyoming does not require franchise taxes for LLCs. Instead, LLCs in Wyoming only have to pay an annual license tax based on the value of their assets located in the state. The fee is calculated at a rate of 0.0002 (two-tenths of one mill) on the dollar, with a minimum fee of $60.
Wyoming imposes a state excise (sales and use) tax of 4% on the sale or lease of tangible personal property and certain services. The sales tax applies to the total amount paid by the purchaser, including any shipping or handling charges. The sales tax also applies to the use, storage, or consumption of tangible personal property or services in Wyoming if the sales tax was not paid at the time of purchase.
Depending on the locality, your total sales tax rate in Wyoming can be as high as 6%.
To collect and remit sales tax in Wyoming, you will need to obtain a seller’s permit or a sales tax license from the Wyoming Department of Revenue. You can apply for a seller’s permit online through the Wyoming Internet Filing System for Business (WYIFS).
Once you have a seller’s permit, you will need to file sales tax returns depending on your sales volume online through the WYIFS. You will also need to keep records of your sales and purchases for at least four years.
Wyoming does provide various exemptions from the excise tax for certain types of transactions, such as:
- Sales for resale
- Sales to governmental entities
- Sales of food for domestic home consumption
- Sales of prescription drugs and medical equipment
- Sales of agricultural products and machinery
- Sales of newspapers and magazines
Wyoming’s Mineral Tax is a tax levied on the extraction of minerals from the state’s land and resources. It applies to both oil and gas as well as solid minerals such as coal, uranium, trona, and bentonite.
Minerals are assessed at 100% of their fair market value. The severance tax rate varies depending on the type of mineral and the method of extraction. For example, the severance tax on surface coal is 6.5%, and the severance tax on oil and natural gas is 6% of fair market value.
LLCs that operate in Wyoming and extract minerals from the state are subject to the Mineral Tax. You must file monthly or quarterly returns with the Wyoming Department of Revenue, depending on the type of mineral and the amount of production.
You can use the WYIFS to file your returns electronically. LLCs must also pay an annual license tax of $60 or a small percentage of the value of their LLC’s assets located in Wyoming – whichever is greater.
Transportation- and Vehicle-Related Taxes
In Wyoming, there are certain taxes and fees that might be relevant to businesses involved in transportation or those that use vehicles for commercial purposes. These include:
- Fuel Taxes: Wyoming imposes taxes on fuel, which are relevant for businesses involved in transportation or those with a fleet of vehicles. This includes taxes on gasoline, diesel, and other types of fuel.
- Heavy Highway Vehicle Use Tax: For businesses operating heavy vehicles (with a gross weight of 55,000 pounds or more), there is a federal Heavy Highway Vehicle Use Tax that must be paid annually. This is a federal tax, not specific to Wyoming, but applicable to businesses operating such vehicles in any state.
- Sales Tax on Transportation Equipment: If a business purchases vehicles or other transportation equipment, Wyoming's sales tax may apply to these purchases.
Note: Learn more about these types of taxes, their fees, and their requirements by visiting the Wyoming Department of Transportation website.
Regardless of where your business is located, if you run an LLC in the US, there are a number of federal taxes you’ll need to pay. Below are some of the main types your LLC may be required to pay for federal tax purposes:
By default, the Internal Revenue Service (IRS) will not treat single- and multi-member LLCs as separate entities from you for tax purposes. What this means is that you’ll need to report your share of your LLC’s profits on your individual tax returns and pay federal income tax on them at the personal rate of your tax bracket.
Having said that, keep in mind that LLCs can also elect to be taxed as C corps or S corps, which changes how these taxes are levied in different ways.
In addition to income tax, members of single- and multi-member LLCs will need to pay self-employment tax on the share of the business’s profits that they report on their personal tax return at the end of the year.
This tax is levied at a flat rate of 15.3% against businesses with net earnings that exceed $400, though it is applied slightly differently to LLCs that have elected to be taxed as S corps or C corps.
If your LLC hires any employees, it will need to withhold a portion of their salaries to cover various types of taxes on your employees’ behalf – including Social Security, Medicare (FICA), and payroll taxes.
Furthermore, the members of any LLCs that have elected to be taxed as an S corp will be required to pay employment taxes on their salaries. However, in return for this, the remainder of the business’s profit after these salaries have been distributed will be safe from both self-employment and FICA taxes.
If your LLC engages in certain types of business (such as the sale of alcohol and tobacco or operating a heavy highway vehicle, among others), it may need to pay federal excise taxes in order to do so legally. Each excise tax comes with its own set of rules, rates, and filing obligations you’ll need to be aware of.
Understanding and fulfilling these federal tax obligations is crucial for keeping your LLC compliant and avoiding unnecessary financial penalties and/or fines.
How to File LLC Taxes in Wyoming
Below, we’ve outlined the general process an LLC in Wyoming will need to follow in order to file their tax return correctly. Note that the specificities of each step will vary slightly depending on how your LLC is organized and the specific locality it’s based in.
Step 1: Gather Your Documentation
To ensure accurate tax filing, thorough record-keeping is essential. Begin by collecting your personal information, including:
- You and your partner’s Social Security number, date of birth, and residential address
- The previous year’s tax returns
- Your LLC’s Employer Identification Number (EIN)
Then, you’ll need to gather all documentation related to your business’s income, such as:
- Invoices you’ve issued
- Sales transaction logs
- Electronic payment reports from services like PayPal or Stripe
Lastly, assemble all records pertaining to your business expenses, which should cover:
- Lease receipts for your business premises
- Bills for utilities
- Records of office supplies purchases
- Documentation of business-related travel
- Payroll records for employees
Note: Depending on how your LLC is organized and its tax election, you may need different information for your tax return.
Step 2: Find The Right Tax Forms
Once you've gathered all necessary documents, the next step is to select the correct tax forms for your LLC based on its organization:
- Single-Member LLCs: The business’s total income and expenses are reported on a Schedule C form, which is attached to the owner’s personal tax return and due by April 15 or the following business day if it lands on a weekend or holiday.
- Multi-Member LLCs: File an information return using Form 1065. Members must fill out a Schedule K-1 showing their individual earnings or losses by March 15 or the next business day.
- C Corporations: File a corporate tax return using Form 1120 by the April 15 deadline or on the next business day if it's a weekend or holiday.
- S Corporations: Use Form 1120-S for the corporate tax return and distribute Schedule K-1 forms to shareholders for reporting their shares of profits or losses. The deadline for filing taxes using 1120-S is March 15 or the following business day.
Since state and local taxes will have their own individual forms and requirements, we recommend contacting your municipality or hiring an accountant for guidance.
With the appropriate documentation gathered and the correct tax forms for your business entity on hand, you’ll be ready to fill them out and submit them.
Step 3: File Your Taxes
The majority of businesses choose electronic filing for its speed, enhanced security, and reliability compared to paper filing, which can be slower and more prone to errors. Here’s how it works:
- Federal Tax Returns: The IRS provides two electronic services for tax submission: Free File for businesses with an AGI below $72,000 and Free Fillable Forms for those above the threshold.
- State and Local Tax Returns: The annual license tax as well as sales and mineral tax returns are filed online via the WYIFS. Taxes that involve vehicles, fuel, and transport are filed through the Wyoming Department of Transportation. Property tax returns are not filed with the state, but with the county assessor where your business property is located.
Note: These electronic filing tools are best suited for those who are already confident in handling their LLC taxes as if filling out a paper form.
For new business owners, we recommend opting for the expertise of a tax professional in order to ensure both accuracy and compliance in your tax filings.
Recommended: Schedule a free consultation with 1-800Accountant to stay on top of your taxes.
Keep Your Wyoming LLC Compliant
While LLCs are generally easier to maintain than corporations, there are certain state and local formalities your LLC must satisfy in order to remain compliant.
Wyoming LLC Annual Report
You can file the annual report online or by mail, depending on the amount of the fee (minimum $60). The filing deadline is the first day of the anniversary month of your LLC’s formation. For example, if your LLC was formed on June 15, 2023, your annual report is due by June 1, 2024.
If you fail to file or pay on time, your LLC will be administratively dissolved, and you will have to pay a reinstatement fee of $100.
Licensure and Tax Requirements
In Wyoming, almost all businesses are required to obtain various licenses and permits at the local, state, and federal levels. Below, we’ve broken down three of the most common types your LLC may need:
- Sales Tax Licenses: If your LLC plans to sell taxable products or services in Wyoming, you will need to register for a sales tax license. This is also known as a seller’s permit, sales tax permit, sales tax number, or sales tax ID. You can apply for a sales tax license online through the WYIFS. The application is free, and you will receive your permit within 10 days of filing.
- Professional Licenses: If your LLC plans to provide certain professional or occupational services in Wyoming, you will need to obtain a professional license from the relevant state board or agency. The requirements for a professional license may vary depending on the type of service, the level of education, the experience, and the examination. You can find a list of professional licensing boards in Wyoming on the Governor’s Boards and Commissions page.
- Environmental Permits: If your LLC engages in activities that may affect the quality of water, air, or land in Wyoming, you will need to obtain an environmental permit from the Wyoming Department of Environmental Quality (DEQ). Some examples of activities that require an environmental permit are construction, mining, oil and gas production, wastewater treatment, solid waste disposal, and air emissions.
Note: For business permitting and other types of licensing and tax information, please refer to the Wyoming Secretary of State’s Start a Business section.
Wyoming LLC Taxes FAQs
If you do business or are a resident in Wyoming, there's little disadvantage. However, forming an LLC in Wyoming while operating in another state can lead to legal and tax implications. It can double the paperwork, fees, and potential legal issues. Forming your LLC in your home state or where you're actually doing business is recommended.
In Wyoming, businesses pay no corporate or personal income taxes. The Wyoming sales tax is only 4%, a maximum local sales tax rate of 2%, has low property tax rates, and does not impose any inheritance or estate taxes. These factors make Wyoming a business-friendly state in terms of taxation.
Find out more about what taxes your Wyoming LLC may have to pay in the sections above.
Yes. Non-residents can open an LLC in Wyoming. You do not need to be a US citizen or resident or even be physically located in the U.S. However, you need to follow state-specific LLC regulations, including choosing a registered agent, filing annual reports, and maintaining a registered office in the state.
You can learn more about how to start an LLC in Wyoming with our guide.
The minimum annual fee for an LLC in Wyoming is $60. The fee is calculated at a rate of 0.0002 (two-tenths of one mill) on the dollar. This fee is associated with the mandatory filing of an annual report license tax, due on the first day of the anniversary month of the LLC's formation.
Refer to our LLC Taxes guide to learn more about LLC fees and business taxes.