Understanding Wyoming’s Tax System
Wyoming has no state income tax. You only pay sales tax (4-6%), property tax, and a few other taxes. Sales tax increases up to 2% depending on the county. All Wyoming businesses should file an informational tax return and a federal business tax return. Without income taxes, Wyoming’s largest revenue sources are sales and use taxes. Vendors collect and remit these taxes.
Tax Implications for Different Business Structures
Our guide explains how Wyoming taxes different businesses. We share knowledge from forming many businesses, although we are not tax professionals. Foreign-owned LLCs pay federal tax on US income at 30%. Foreign C-corps pay 21% federal corporate tax on global income.
Partnerships don’t pay income tax. Income passes through to partners who report their share. Corporations can be C-corps or S-corps. C-corps pay corporate income tax. S-corps pass income to shareholders.
LLC Specifics and Federal Tax Responsibilities
Wyoming offers a simple tax system for online businesses and non-US citizens. But you still have tax responsibilities to consider. LLC members owe no state tax on Wyoming LLC income. The only LLC tax is the $50 annual license tax.
You pay federal income tax on business profits, less deductions. If you pay employees, speak to your accountant about taxes. The average sales tax rate is 5.42%.
FAQs on Wyoming Business Taxes
What is the business income tax in Wyoming?
Wyoming has no state income tax. You pay sales tax (4-6%), property tax, and a few other taxes. Sales tax may increase up to 2% depending on the county.
How is income taxed in Wyoming for LLC?
The only tax for an LLC in Wyoming is the annual license tax of $50. LLC members owe no state tax on income. Self-employment taxes are 15.3%. If you take profits from an LLC, self-employment tax will apply.