Bottom Line
Wyoming ranks #1 on the Tax Foundation's 2025 State Tax Competitiveness Index, offering businesses no state income taxes, minimal regulatory burden, and the nation's "Most Business-Friendly Tax Climate" since 2013.
Why Wyoming Dominates Business Rankings
Wyoming earned the Tax Foundation's nod for best business climate in the United States for the fifth year in a row. The independent research organization's comprehensive analysis evaluates over 150 variables in the five major areas of taxation, positioning Wyoming as America's premier business destination.
PROBLEM
High state taxes drain business profits
SOLUTION
Wyoming eliminates state income taxes
RESULT
Wyoming has no state income tax on wages, military pay, investment earnings, or retirement income
Tax Advantages That Matter
Zero State Income Taxes
With no corporate or personal income tax, state and local governments rely heavily on mineral revenues to keep services afloat. This creates a unique advantage:
Individual Income Tax
Wyoming state income tax does not exist on any form of personal income
Corporate Income Tax
Wyoming also does not have a corporate income tax
Competitive Sales Tax Structure
Wyoming has a 4.00 percent state sales tax rate and an average combined state and local sales tax rate of 5.44 percent. Essential items receive favorable treatment:
Groceries
Essential items like groceries are exempt from sales tax in Wyoming
Medical
Wyoming does not tax sales of prescription drugs, medical equipment or food that is typically consumed at home
Low Property Tax Burden
Wyoming's average effective property tax rate is also on the low side at 0.58%, making real estate investment attractive for businesses and individuals.
Business Formation Excellence
Streamlined LLC Creation
The Wyoming Secretary of State offers efficient business formation through multiple channels:
Formation Process
- • Online Filing: The turnaround time for LLC formation in Wyoming is advertised by the Secretary of State as one (1) minute after payment if submitted online
- • Filing Fee: Filing fee of $100.00 for LLC Articles of Organization
- • Annual Reports: Wyoming LLCs must file an annual report with the Secretary of State to remain in good standing for $60 for LLCs with $300,000 in assets or less
Superior Asset Protection
Wyoming provides industry-leading legal protections for business owners:
Charging Order Protection
A key benefit of forming a Wyoming LLC is its charging order protection, which helps protect business owners from personal creditors seizing their business assets
Single-Member Protection
Wyoming provides the same strong liability protection for single-member LLCs as it does for multi-member LLCs
Privacy Features
Wyoming allows for anonymous LLC ownership, meaning your name does not have to appear in public records
Economic Development Infrastructure
Government Support Systems
The Wyoming Business Council supports local leaders, businesses, and communities in building strong, sustainable economies through innovative programs, resources, and partnerships.
Financial Resources Available
- • Infrastructure Funding: Our Business Ready Community grant and loan program provides financing for publicly owned infrastructure
- • Capital Access: We work with local lenders, federal agencies, the Wyoming State Treasurer, and cities, towns, counties or state authorities to support businesses with capital needs
- • State Stability: The Wyoming Legislature is statutorily required to maintain a balanced budget and the state has approximately $20.1 billion in savings and trusts
Workforce Development
Wyoming recognizes that people are what make businesses successful, and the state is committed to investing in its current and future workforce needs.
Educational Investment
- • K-12 Funding: Wyoming consistently ranks among the top 10 states in annual K-12 per-pupil spending (just over $19,000 per student)
- • Higher Education: The University of Wyoming offers a world-class education with more than 200 areas of study in Laramie and via distance-learning programs
- • Scholarships: In 2005, Wyoming legislators created the Hathaway Scholarship program for qualified students who graduate from Wyoming high schools
Regulatory Environment
Minimal Bureaucracy
Access Advantages
- • Direct Communication: Wyoming's open-door access to legislators and the Governor is especially attractive to startup companies in highly regulated industries
- • Operational Flexibility: Restrictions and corporate formalities are at an absolute minimum in Wyoming
- • Meeting Freedom: Your directors' and/or shareholders' and members' meetings may be held anywhere in the world
Technology and Infrastructure
Digital Connectivity
Wyoming businesses benefit from top-ranked broadband connectivity, essential for modern operations.
Transportation Network
- • Strategic Location: Wyoming's excellent transportation access has been a major factor in the creation of new business parks suited to manufacturing, logistics and data centers
- • Infrastructure Investment: The WBC has invested millions in site readiness statewide since 2004
Quality of Life Factors
Recreation and Lifestyle
Wyoming features two national parks, Devils Tower National Monument, 12 state parks and five national forests along with plenty of open spaces to hunt, fish, bike, hike, and climb.
Community Benefits
- • Safety: Wyoming offers safe neighborhoods and abundant outdoor space and recreation opportunities
- • Education Quality: Well-funded public education supports family-friendly communities
- • Cultural Options: Wyoming offers an array of Western- and urban-themed events throughout the state, from rodeos to galleries to symphonies to brew fests to farmers markets
Actionable Next Steps
Immediate Actions for Business Formation
- 1. Name Search: Conduct a business name search on the Wyoming Secretary of State's website
- 2. Choose Structure: Consider Wyoming LLC formation for startups and small- to medium-sized businesses
- 3. File Online: Use the Wyoming Secretary of State online filing system at https://wyobiz.wyo.gov
- 4. Registered Agent: Secure a Registered Agent with a physical street address in Wyoming
Long-Term Business Planning
Tax Strategy
Leverage Wyoming's unique position as one of only two states to forgo both individual and corporate income taxes without imposing a gross receipts tax.
Growth Support
Access resources through the Wyoming Business Council for expansion financing and workforce development.
Authority Sources
This analysis draws from official government sources including:
- • Wyoming Business Council: Official state economic development agency
- • Wyoming Secretary of State: Primary business registration authority
- • Tax Foundation: Independent tax policy research organization
- • Internal Revenue Service: Federal tax guidance for Wyoming
- • Wyoming Taxpayers Association: State revenue analysis
Government Contact Information
Wyoming Secretary of State
Herschler Building East
122 W 25th St Suites 100 and 101
Cheyenne, WY 82002-0020
TL;DR
Wyoming eliminates state income taxes, minimizes regulatory burden, and provides superior asset protection laws, making it America's #1-ranked state for business tax climate. The state offers streamlined formation processes, robust infrastructure investment, and direct access to government officials—creating an unmatched environment for business success.