When you decide to form a business company, you have to fill out and submit various legal forms regardless of its type. The Wyoming LLC operating agreement is an essential document that you should consider completing when forming a limited liability company (LLC).
Besides this agreement’s content, we will also touch on the Wyoming laws governing an LLC’s formation and describe the required steps for launching a business.
Business people create operating agreements to protect their shares and interests, establish the company’s management policies, provide information about each owner’s contribution, and define their fundamental principles.
Among the elements included in this agreement are:
Some people think that limited liability companies can be created only by a group of people. However, if a person wants to form an LLC alone, they can do it without any problem. Because it is possible either way, two templates of operating agreements are common: a single-member and a multi-member LLC operating agreement.
You need a multi-member LLC operating agreement. If you have at least one partner in your business. If you establish a company alone, pick the first type. The document separates your private assets from business assets by showing how much you have invested in the company.
A group of company’s proprietors will indicate “who invested what” in a multi-member LLC operating agreement and set the norms under which everybody will work. Each proprietor should get a signed copy and keep it in a personal archive.
Wyoming public authorities do not mandate you to make and sign the operating agreement. However, business people are strongly recommended to discuss the conditions and outline them in the operating agreement for additional protection. Moreover, people usually prefer to notarize this form.
As you can see, there are many details to include in the agreement. Therefore each template usually comprises about ten pages. Let’s review all parts briefly:
Business people in all American states use the scheme above to draw their agreements. We recommend following the described structure, but you may add supplemental sections if you like.
If you are looking for the correct Wyoming LLC operating agreement template, our website offers advanced form-building software that can help. Use it to obtain any template you need.
Let us briefly explain the basics of companies with limited liabilities. Such companies are common in the US because they combine the pros of small companies (simplified taxation) and large corporations (all owners’ liability is constrained by their investments). Multi-owner structure in such companies allows both people and other companies to own shares.
The laws governing such entities vary from state to state. They are slightly different, offering various peculiarities here and there.
Title 17 of the Wyoming Statutes offers laws on various types of entities. Particularly, Chapter 29 covers limited liability companies. General provisions and terms’ meanings are in Article 1.
Three Sections are dedicated to the operating agreement, its scope, functions, and restrictions (from 17-29-110 to 17-29-112).
Use our brief instructions on the LLC forming procedures to start your limited liability company in Wyoming. Prepare to complete some legal forms and pay various fees.
1. Name Your Entity
You should begin with inventing a name for your company. Restrictions are defined in Section 17-29-108 of the Wyoming Statutes.
This section proposes acronyms and word combinations specifically for such companies. You should pick one and add it to the name (for instance, “LLC,” “limited company,” and other options).
Do not add any words that may lead to uncertainties regarding your company’s type (“corporation,” “partnership,” and other words). Finally, the name should be unique and follow all legal requirements. When you have selected the desired name, you have to cover the fee of $100 to obtain it.
2. Designate the Registered Office and Agent
Your company should have a registered office and a registered agent, as prescribed by Section 17-29-113 of the Wyoming Statutes. They deal with various inquiries from the public authorities, provide the mailing address, face lawsuits (if you ever get them), and have other relevant responsibilities.
There are several ways to choose your agent. You can be one if needed. Other options are selecting an agent from your company’s owners, asking special agencies to provide your company with such a service, or appointing any other trusted person (a resident of the state).
3. Submit the Application to Form Your Company
Before preparing the required legal form, decide whether your company will be registered in Wyoming (a domestic entity) or outside of the state (a foreign entity). You can apply to create a foreign entity in Wyoming only if your company already exists in the state and you want to expand your business.
If you have chosen the first option, you should fill out and submit the Articles of Organization form. If the company is registered as foreign, file the completed Articles of Continuance template. Filing costs $100 regardless of the company type.
Application to form a domestic company is possible via both regular mail and online. For a foreign company, applications can be filed only through regular mail.
4. Make the Operating Agreement
The agreement is undoubtedly needed for you and your business. Gather with your partners to make a template or create one on your own if you are the sole owner. Then, sign the form and remember that each party that has signed it should obtain the agreement copy.
5. Get Your Enterprise’s Tax Number
You need the unique tax number for your company so it can work legally. All business activities become accessible for your company only after receiving the number (also referred to as EIN, FTIN, or FEIN), including banking operations and workers’ hiring.
The Internal Revenue Service (or IRS) is empowered to issue tax numbers to entities. You can apply online, via regular mail, or by fax. Applying online is the fastest: you will get the number in 15 minutes. You do not have to pay to receive the entity’s tax number.
6. Report about Your Entity’s Activity
It does not matter how much your company has earned throughout the year. You should submit a report annually. This record will demonstrate your entity’s activities and financial results. In Wyoming, all entities are obliged to report every year. Application costs $50.
Owners should file reports before the first day of the month when their companies were registered. Suppose your company was formed on July 3, 2015. In this case, your report should arrive at the Secretary of State’s office no later than July 1 (every year starting from 2016). Missing the deadline leads to various fines and penalties.