Complete Guide to Wyoming LLC Taxes in 2025
Wyoming is widely regarded as the single most LLC-friendly state in America. The Cowboy State imposes no personal income tax, no corporate income tax, and no franchise tax on LLCs. Combined with strong asset protection laws, charging order protections for single-member LLCs, and a minimum annual report fee of just $60, Wyoming has earned its reputation as the gold standard for LLC formation. This comprehensive guide explains everything about Wyoming LLC taxation in 2025.
How Wyoming Taxes LLCs: The Zero Income Tax Advantage
Wyoming does not have a state income tax -- at all. There is no personal income tax, no corporate income tax, and no entity-level tax imposed on LLCs. Your LLC profits pass through to you as a member, and Wyoming simply does not tax them. Period.
This places Wyoming alongside Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Washington as no-income-tax states. But Wyoming goes further than most: unlike Texas (which has a franchise tax), Washington (which has a B&O gross receipts tax), and Tennessee (which has an excise tax on net earnings), Wyoming imposes no alternative business tax of any kind. The only recurring cost is the annual report fee.
Key Point: Wyoming is the only state in America that combines zero income tax, zero franchise tax, zero gross receipts tax, charging order protection for single-member LLCs, no requirement to disclose member names in formation documents, and the lowest annual fee among no-income-tax states. This is why Wyoming consistently tops rankings for LLC formation.
Wyoming LLC Annual Report
All Wyoming LLCs must file an Annual Report with the Wyoming Secretary of State. The fee is based on the LLC's total assets located in Wyoming:
| Assets in Wyoming | Annual Report Fee |
|---|---|
| $0 - $250,000 | $60 (minimum) |
| $250,001 - $500,000 | $100 |
| $500,001+ | $100 + $0.0002 per dollar above $500,000 |
For most small LLCs -- especially those formed in Wyoming but operating primarily in other states -- the fee is the $60 minimum. The annual report is due on the first day of the anniversary month of the LLC's formation.
Wyoming Tax Summary
| Tax Component | Rate / Amount | Notes |
|---|---|---|
| State Income Tax | None (0%) | No personal or corporate income tax |
| Franchise Tax | None | No entity-level tax on LLCs |
| Annual Report | $60 minimum | Based on WY-located assets |
| State Sales Tax | 4% | Plus up to 2% local (max 6%) |
| Federal SE Tax | 15.3% | On 92.35% of net earnings |
Federal Taxes for Wyoming LLC Owners
While Wyoming provides a complete state-level tax break, federal taxes still apply in full:
- Self-Employment Tax (15.3%): 12.4% Social Security (up to $176,100 in 2025) plus 2.9% Medicare on all earnings. Additional 0.9% Medicare surtax on earnings above $200,000 (single).
- Federal Income Tax (10%-37%): LLC pass-through income taxed at applicable federal bracket rates.
- QBI Deduction: Up to 20% of qualified business income under Section 199A.
Tax Tip: Wyoming LLC owners should aggressively evaluate S-Corporation election. With zero state income tax, there is no state-level downside to the S-Corp election, and the federal SE tax savings can be substantial -- often $5,000-$15,000+ per year for profitable businesses. Use our S-Corp Tax Calculator to compare.
Wyoming Sales Tax for LLCs
Wyoming imposes a 4% state sales tax on retail sales of tangible personal property. Local jurisdictions can add up to 2% more, bringing the maximum combined rate to 6%. The average combined rate across Wyoming is approximately 5.36%.
If your LLC sells taxable goods in Wyoming, you must obtain a sales tax license from the Wyoming Department of Revenue. Notably, Wyoming does not tax most services, and there is no tax on food for home consumption.
Why Wyoming Is the Most LLC-Friendly State
Wyoming was actually the first state to create the LLC (in 1977), and it has continuously refined its LLC laws to be the most business-friendly in the nation. Key advantages include:
- Charging Order Protection: Wyoming extends charging order protection to single-member LLCs -- most states only protect multi-member LLCs. This means a creditor of an LLC member cannot seize the LLC's assets; they can only receive distributions as they are made.
- Privacy: Wyoming does not require members or managers to be listed in the Articles of Organization. Only a registered agent is publicly disclosed.
- No Publication Requirement: Unlike states like New York and Arizona, Wyoming does not require you to publish notice of LLC formation in a newspaper.
- Lifetime Proxies: Wyoming allows lifetime proxies, which can be useful for estate planning and succession purposes.
- No Operating Agreement Required: While recommended, Wyoming does not legally mandate an operating agreement.
- Series LLCs: Wyoming allows the formation of Series LLCs, which can segregate assets and liabilities into separate series within a single LLC structure.
Wyoming LLC Filing Deadlines
| Filing Type | Deadline | Extension |
|---|---|---|
| Annual Report | Formation anniversary month (1st day) | No extension |
| Federal Single-Member LLC | April 15 | Yes, to October 15 |
| Federal Multi-Member LLC (1065) | March 15 | Yes, to September 15 |
| Federal Estimated Payments | Apr 15, Jun 15, Sep 15, Jan 15 | No |
Since Wyoming has no state income tax, there are no state estimated tax payments and no state income tax return to file.
Wyoming LLC Formation Costs
- Articles of Organization: $100 filing fee (or $102 online) with the Wyoming Secretary of State
- Registered Agent: Required; $50-$150/year for a commercial registered agent service. Must be a Wyoming resident or business entity authorized in Wyoming.
- Annual Report: $60 minimum/year (ongoing)
- EIN: Free from the IRS
- Operating Agreement: Not required but strongly recommended ($0-$500)
Wyoming vs. Other Popular LLC States
| State | Income Tax | Annual Fee | Business Tax |
|---|---|---|---|
| Wyoming | None | $60 min | None |
| Delaware | 0-6.6% | $300 | None (for LLCs) |
| Nevada | None | $350 + $200 license | Commerce tax above $4M |
| Texas | None | $0 | Franchise tax 0.375-0.75% above $1.23M |
| Florida | None | $138.75 | 5.5% corporate (C-corps only) |
| South Dakota | None | $50 | None |
Wyoming stands alone as the state with zero income tax, zero business tax, the lowest annual fee among top LLC states, the strongest asset protection, and the most privacy. Delaware is popular for corporations but offers no real advantage for LLCs unless you are raising venture capital. Nevada's combined fees ($550+/year) are nearly 10x Wyoming's minimum of $60.
Forming a Wyoming LLC from Another State
Many business owners form their LLC in Wyoming even though they live and operate in another state. This is called "foreign" LLC registration. Key considerations:
- You will need to register your Wyoming LLC as a foreign LLC in the state where you actually conduct business
- You will pay annual fees to both Wyoming and your home state
- You will still owe income tax in the state where you live and work, regardless of where the LLC is formed
- The main benefits of a Wyoming LLC for out-of-state owners are asset protection and privacy, not tax savings
Common Wyoming LLC Tax Mistakes
- Thinking Wyoming formation eliminates state taxes: If you live in California and form a Wyoming LLC, you still owe California taxes on your LLC income. Wyoming formation saves you from Wyoming taxes only.
- Missing the annual report: Even at $60, failing to file leads to involuntary dissolution.
- Ignoring federal estimated tax payments: With no state withholding, the full federal burden falls on quarterly estimates.
- Not electing S-Corp when appropriate: Wyoming's zero state tax makes S-Corp election a pure SE tax saver with no state-level complications.
- Forgetting to register as a foreign LLC: Operating in another state without foreign registration can result in penalties and loss of court access.
- Overlooking sales tax nexus: If you sell physical products in Wyoming, you must collect the 4% state sales tax plus local taxes.
Dissolving a Wyoming LLC
To close a Wyoming LLC, file Articles of Dissolution with the Wyoming Secretary of State ($25 online or by mail). There is no requirement to obtain tax clearance since there is no state income tax. File your final federal tax return, settle debts, and distribute remaining assets to members. Wyoming's dissolution process is one of the simplest in the nation.