Why Form a Corporation in Wyoming?

• Turnaround times for forming a corporation in Wyoming: You will normally have the option of a “Standard” turnaround time and an “Expedited” turnaround time for forming your corporation. You can learn about those times here.
• Fees for forming a corporation in Wyoming: Learn about standard filing costs here.
• Wyoming State Annual Report Fee: A yearly fee when you file your annual report.
• Wyoming Permits and Licenses: Various fees for renewing your licenses and permits on a regular basis. These depend on the type of business you are operating and where you are located. They vary from city to city and industry to industry. We have a service that will tell you what permits and licenses you need.

Self-Employment Tax

Because your Wyoming corporation income flows through to your personal tax return, you must pay self-employment tax (also known as FICA, Social Security or Medicare tax) on your earnings. This is typically at a rate of 15.3 percent. You will be able to deduct your business expenses from your income when working out how much self-employment tax you owe.

In some cases, part of the income from an S Corporation can be paid as a “distribution” rather than “salary,” so it would not be subject to self-employment tax.

Find out how this can save you money.

Corporation Tax

Unlike the Limited Liability Company and the S Corporation, a C Corporation is required to file a corporate tax return and pay corporation taxes on any profits. When those taxed profits are paid to shareholders as dividends, they will also be subject to taxation on that individual’s tax return. This is known as “double taxation.”

C Corporation Tax Rates

The income of the C Corporation is taxed at the corporate level and then again at the shareholder level. The standard corporation tax rate is 21 percent.

Stock Dividends From C Corporations

A C Corporation may pay shareholders dividends as a share of the profits of the company. The value of dividends that each shareholder is entitled to depends on how many shares they own.

Dividends that are distributed to shareholders are taxed twice: first at the corporate level as profit (on the corporation’s Form 1120) and again at the individual level as stock dividends (on the shareholder's Form 1040).