Out of all the Rocky Mountain states, Wyoming has the lowest cost of living, making it one of the most affordable states to live and work in. And with many more people looking to escape their mundane 9-to-5s, you may be thinking about starting a business in Wyoming. Although starting a business may seem complicated, as long as you have the right tools and knowledge, you’ll be running a successful business in no time!
With this guide, you will learn all there is to know about starting your Wyoming business from scratch. You will learn everything from choosing a business idea, picking a name, writing a business plan, and registering the company, among other essential steps.
Step 1: Choose Your Idea
To start a business in Wyoming, you first need to choose an idea. The idea will form the foundation of your business. But not to worry too much! At this stage of the process, the idea does not need to be overly thought-out.
To find an idea and to test if your idea will actually work as a business, answer these questions below:
- Do you have any passions, skills, interests, or hobbies?
- Can any of the above activities be turned into a profitable business?
- Can you see yourself working in the business every day and enjoying it?
- Are there any businesses like yours that already exist?
- Is there a need for your business?
- How is your business solving a consumer’s problem?
Your answers should give you a good indication of whether or not your business idea will work. In addition, don’t be afraid to ask for help from your friends and family. Their experience as consumers will be incredibly insightful!
Step 2: Pick a Name
Once you have decided on a business idea, you will need to pick a name for the business.
When choosing a name, make sure that the name is unique but also relevant to the industry you are based in. Your name should also be easy enough for consumers to read and pronounce, giving people an idea of your products or services.
In Wyoming, you cannot register a business using a name already registered on the Wyoming Secretary of State’s website. To check if the name you want to use is available, run a corporation and business entity search on the Wyoming Secretary of State’s website.
If you are struggling to come up with a name in the first place, try out some of these helpful methods:
- Create a word dump. This is a list of words that pops into your mind when you think about your business. The trick is: don’t think too hard about what to write down.
- Use an online name generator. These are free and come up with randomized names.
- Brainstorm with friends and family.
- Create a poll on your Facebook page.
Step 3: Write a Business Plan
Once you have picked your business idea and name, you will need to draft up and complete a business plan. Your business plan is like the blueprints of your business and should outline how the business is run.
Your business plan should include all your research and planning, information about the products and services, how the business will be run, and any important financial information. Make sure your business plan is as thorough as possible because you can also use it to apply for funding.
In your business plan, you should try to answer the following questions:
- What is the purpose of your business?
- Why have you started the business?
- What products or services does your business offer?
- Who are your direct competitors?
- Who is your target audience?
- How do you plan on turning your target audience into paying customers?
- What are your marketing techniques?
- How much will you need to start the business?
- Will you need funding?
- How much will you need to make to break even?
- What equipment is needed?
- What type of employees will you need?
- What are your financial goals and predictions?
If you have never written a business plan before, you can download a ready-to-use template off the internet for free to help you get started.
Step 4: Get Funding
Starting a business in Wyoming requires a bit of money. You will need to pay for many startup costs like paperwork, applications, equipment, and supplies. You must apply for funding if you don’t have this money upfront. This can be done through a grant, loan, or an investor.
While Wyoming does not offer much in the way of state grants or loans, plenty of private financial institutions and organizations can help you out. Alternatively, if you’re happy to part with some shares and profits in your business, you can have an investor fund the startup costs.
Step 5: Choose a Business Structure
The next step in starting your business is choosing a business structure. Be sure to select the right one, as each structure has its own features and benefits.
Here are the four business structures that you can choose from in Wyoming:
Sole Proprietorship
The sole proprietorship is an informal business structure with only one owner. In this business structure, there is no separation between the assets of the owner and the business. The sole proprietorship structure is commonly used for small, low-risk businesses.
Partnership
A partnership is also an informal business structure and is very similar to a sole proprietorship, as there is still no separation between the owner’s assets and the business’s. The only difference between the two business structures is that there is more than one owner in a partnership. All owners of a partnership have equal shares in the business.
Limited Liability Company
A limited liability company, or an LLC, is a commonly used business structure for small to medium-sized businesses. This is a popular business structure because an LLC combines elements of two different types of business structures, offering benefits of both. It has the flexibility and ease of a sole proprietorship or partnership with the added liability protection of a corporation.
Corporation
A C or S corporation is a formal business structure used by large companies with multiple shareholders. A corporation is an entirely separate entity from the owners. This business structure also has some tax benefits.
Step 6: Register the Business
Depending on your chosen business structure, you may need to register it with the Wyoming Secretary of State before you can begin trading.
Sole Proprietorship
This business structure does not need to be registered with the state as it is not a formal business structure. You can simply set up and start trading.
However, if you want to trade with a name other than your personal legal one, you must file a Doing Business As (DBA) on the Wyoming Secretary of State website.
Partnership
You do not need to register a partnership either. However, you can file a DBA, as with a sole proprietorship. In addition, you can draft up and have all partners sign a partnership agreement. This agreement can come in useful in case of any future disputes. Although this agreement does not need to be submitted to the state, it is an excellent document to have in the company’s records.
Limited Liability Company
You must register your Wyoming LLC with the state before starting a business. To register your LLC, you must fill out the Articles of Organization and submit them online. The fee to register your LLC is $102.
Corporation
Your corporation will also need to be registered with the Wyoming Secretary of State. To do this, you must submit the Articles of Incorporation online. The fee to do this is $102.
Step 7: Set Up Your Finances & Accounting
Set up your finances by opening a bank account for the business, applying for a company credit card, and setting up a payment method for customers to use. You should also install a payroll system for employee salaries and taxes if you have employees.
If this is your first time setting up a business’s finances, hiring an accountant to assist you in setting up your finances is a good idea. An accountant can help ensure you remain compliant and do not accidentally overpay taxes.
Step 8: Get Business Insurance
Every responsible owner should have good business insurance. While it is not required for business owners in Wyoming to have insurance, you never know when something can go wrong, and it is always good to be prepared. You should at least take out a general liability insurance policy. This broad insurance policy provides coverage in case of damage or injury to your property. It will also provide all the coverage you need when running a business on a daily basis.
Other insurance policies to choose from include:
- Commercial auto insurance
- Commercial property insurance
- Workers compensation insurance
- Limited liability company insurance
- Business owner’s insurance
For professional advice and tailored quotes, chat with your local insurance broker. They will be able best advise you on what is best suited for your particular needs.
Step 9: Obtain Any Permits or Licenses Needed
In Wyoming, there is no state-issued general business license. However, some counties and cities may have rules about who must apply for business licenses. You can visit the Wyoming Secretary of State website to learn what licenses your business might need. You will also need to check what type of licenses or permits you’ll need according to the type of business you have.
Before starting trading, you will also need to get a sales tax permit from the Wyoming Department of Revenue.
Step 10: Build a Website
In an online and social media-driven world, every Wyoming business should have its own website. It is a great way to market, advertise, and interact with your customers. Building a website is no longer reserved for IT gurus. There are plenty of online DIY website builders that you can use or pay someone to build your website.
Whether you are building the website or someone is doing it for you, make sure you keep the following points in mind:
- Before everything, make sure your domain name is available for use.
- All the fonts used must be clear and easy to read.
- The website interface should be simple and easy to understand.
- Avoid filling the web pages with unnecessary images and videos, as this will slow down the loading times.
- Ensure that all content is yours or you have the owner’s permission.
- Ensure all information is correct and relevant.
- Provide contact details and link your website to your business’s other social media accounts.
Step 11: Hire Employees (If Any)
If you hire employees, you should draft up a job post and post it on both online and local job boards. When you hear back from candidates, narrow them down to your top 5. Next, interview your top candidates, and ask them a series of behavioral and skill-based questions to get a sense of who they are and what they are capable of. Once all the interviews are finished, offer the job to your preferred candidate!
You must report all new hires to the Wyoming New Hire Reporting Center. This needs to be done within 20 days of the hire date, and there is no fee to do this.
Step 12: Market Your Business
The final step in starting a business in Wyoming is to market the business. There are many ways to market the company, and you can be as creative as possible. When marketing, be sure that your content is relevant and up to date.
Here are some good ways to market your business:
- Advertise on your business website.
- Use social media like Facebook and Instagram to create interest.
- Make use of pay-per-click advertising.
- Advertise on Google with your business profile.
- Advertise in your local newspaper.
- Attend markets and expos.
- Attend networking events.
- Host a launch party or event.
- Run competitions and giveaways.
Alternatively, you can hire a marketing expert to take care of this aspect of the business for you.