Wyoming has no corporate or personal income tax. There is no tax return to file with the State. If you had a lot of assets actually located in the state, there is personal property tax and that is paid on the annual report each year. With no property in the State of Wyoming, your annual report is just 50 or 52 if filed online.
Now, if you’re a resident of a state that has personal income tax, ultimately, your income will get passed from the Wyoming LLC down to you personally, and you’ll pay your personal income tax to the state just the same as having a LLC in your state.
You’ll pay personal income tax to the IRS just as normal.
Some people decide to classify their Wyoming LLC as a C corporation with the IRS. This keeps the revenue made “In” the Wyoming LLC to keep it from getting dumped down to you personally. This is effective if you are living in a state of high personal income tax. The one thing to keep in mind is that you’ll have to get the money out of the C Corporation LLC by paying yourself a W2 wage.
In most states paying yourself a W2 wage would result in you needing to then register the Wyoming LLC as a foreign LLC in your home state. Then worse, that could establish your Wyoming LLC to need to pay Corporation tax to your home state in addition to the IRS. If you’re mildly profitable, it will be simplest to just pay the personal tax to your home state from the LLC. If you’re making a lot of money, there will still be obvious savings to leave money in the C Corporation LLC instead of having to get hundreds of thousands dumped onto your personal income tax return.
What are my options?