Starting a Business in Wyoming
Wyoming is one of the best states in the country to have a business. It is consistently one of the best places for entrepreneurs and has one of the lowest rates of business failure nationwide. This is due to it being one of the top ranked pro-business states in the country. It has one of the best tax systems in the country with no corporate or individual income tax. Wyoming businesses can benefit from a variety of incentive programs that provide opportunity for growth. The most common are incentives that are given through tax credits, exemptions, and grant/loan programs. Starting a business in Wyoming can come with a lot of challenges and things to do. One of them would be to lease commercial office space and post a Wyoming business license.
STEPS TO STARTING A BUSINESS IN WYOMINGOf course, this would be done after you setup a business with the Wyoming Secretary which handles business filings. At the federal level you would need to get a FEIN. This number would let you do things such as applying for business credit cards and opening a business bank account. Once you have this number, you can apply online for a Wyoming Sales and Use Tax License which would let you collect sales tax. After checking the status of a Sales/Use Tax License Application, the next major thing to do would be to obtain the proper Business Licenses needed to operate. Sales tax rates, as well as procedures and policies related to tax administration and enforcement are governed by the Wyoming Department of Revenue. Wyoming is one of the states in recent years that have agreed to nationwide legislation governing the collection of sales tax. If you sell to customers outside Wyoming and reach certain requirements, you will need to register for a SST streamlined sales tax certificate. Below are some of the incentive programs given to Wyoming businesses:
- Wyoming offers an exemption program to companies that have a qualified data center. A qualified data center is any company that invests a minimum of $7,000,000 ($5 million on infrastructure such as a building structure and $2 million on equipment such as servers). If the above thresholds are met then Sales Tax Exemptions are given to any data center equipment and other energy related equipment that is used in daily operations. There are also considerations for a $50 million threshold where HVAC equipment and backup generators will also be exempt from sales tax.
- To complement the data center sales tax exemptions, Wyoming has a data center grant program. The program works by giving reimbursements for broadband and electrical costs. The state of Wyoming gives a maximum award of just over $2 million.
- The Workforce Development Training Program is broken down into two sections which are the Pre Hiring Development Grants and the Business Training Grants.
- The pre hiring grants provides workforce training to workers who need specific skill set training for businesses in industries that require it.
- In an effort to maintain competitiveness, Wyoming businesses have access to business training grants to enhance work skills for workers. It is meant to create new work opportunities for under skilled workers who would otherwise not have access to them.
- The Kickstart Grant incentive provides grants to Wyoming startups that offer niche business ideas to the market that have the ability to grow into larger publicly offered companies. To qualify these startups must show increased commitment to expanding Wyoming’s economy through workforce expansion and increased revenues.
- Wyoming offers a Vocational Rehabilitation Program to persons with disabilities in order to help them adapt and merge into traditional workforce roles. Thousands of these citizens are given the opportunity to learn new skills and traits to help give them a level playing field to compete with persons without disabilities.
- Wyoming Sales Tax Exemptions are given to any manufacturing company for sale or lease of equipment or machinery that is used in operations. Additionally, energy (electricity and fuel) used in the manufacturing process is eligible for sales tax exemption. This is applicable to the current sales tax rate.