Does Wyoming Have a Corporate State Income Tax?

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Overview of Wyoming Tax System

  • Wyoming has no corporate income tax.
  • Sales tax rate is 4%.
  • Counties charge extra 1% sales tax.
  • Wyoming incomes from sales, property taxes and state fees.
  • No personal or corporate income tax.

Advantages of Forming LLC in Wyoming

  • Most LLCs report income on owner’s tax return.
  • Wyoming LLCs have no state income tax.
  • Asset protection and liability limits.
  • Personal assets separate from LLC assets.

Benefits of Incorporating in Wyoming

  • No physical Wyoming presence needed to form corporation.
  • Can form LLC instead of corporation.
  • Privacy, asset protection, minimal reporting, low costs, no corporate income tax.

Tax Guidelines for Businesses in Wyoming

  • Wyoming offers simple tax system for online businesses and non-US citizens.
  • Main difference between S and C corporations is S corporations not taxed at corporate level.
  • LLC state income taxes paid where money made, not where formed.

Other Tax Information

  • Wyoming LLCs have privacy, no public member name disclosure.
  • Without revenue from business or personal income taxes, Wyoming relies on sales and use taxes.
  • Property taxes primarily managed and collected at the local level.
  • Partnership does not pay income tax itself.

Conclusion

  • Wyoming has the lowest tax burden in the country, making it an excellent place for entrepreneurs to start a business.

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