Wyoming Companies Face Rising Fees
Hello everybody. We are proud to have become members of Casper, Wyoming’s Chamber of Commerce. We are excited to begin working together and to support the business community. It is our goal to promote Wyoming businesses and believe joining the Chamber is an important part. Our first e-news letter was going to focus on our upcoming estate planning and wealth management seminars. Unfortunately, however, we have heard some unsettling news from the Wyoming Secretary of State that we thought we should bring to everybody’s attention.
Late last Friday, Representative Jerry Obermueller (Casper) put forward a proposal to TRIPLE the annual filing fee cost for businesses, from the currently $50 to $150. Needless to say, this is an unprecedented move that we feel should be brought to the public’s attention. We understand the state of Wyoming has a difficult financial situation ahead, but we do not feel this brash move is the correct way to go about it.
Our particular situation is unique because we provide corporate services to clients, many of whom are outside of WY. A large factor driving their decision to incorporate in Wyoming are the low fees. When you compare the fees facing Nevada corporations and LLCs to Wyoming Corporations and LLCs, we are much lower and this resonates with our clients. For so long as Wyoming maintains its attractive corporate laws our state will continue to benefit from outsized numbers of small businesses choosing to domicile here.
Going after Wyoming companies is the equivalent of killing the goose that lays the golden egg. It may help for a year, but at what cost and how long until we suffer long term damage. We have already heard from a number of clients and there is universal dismay at this proposal.
We don’t want to be entirely naysayers and so have come up with a proposal that we think should be considered. It’s not that we believe our idea is a complete panacea, but it shows how engaging in some creative thinking could solve the state’s budget problems, rather than compounding them.
Consider having Wyoming companies pay their second and third year’s annual dues when they form their companies. This would accomplish several things. It would bring the cash flow forward into this year. Second, we don’t have exact numbers, but we know not every company makes it into the second and third year.
Look at how many companies do not file their second or third annual reports. Chances are it is a significant number as not every venture is successful. These companies do not currently pay dues in subsequent years, however under our proposal they would. This would contribute to state coffers without making small businesses feel taken advantage of. It would still be an increase, but in a much milder and less noticeable manner. A win-win, and certainly better than the current proposal.
Anyway, we are not legislatures, and we know our proposal is not perfect, but certainly there has to be a better way. Let us have the Wyoming business community come together and make a statement the government hears. Ed Murray, the Secretary of State, has made clear his opposition to this proposal.
Thank you for taking the time to read our first e-news letter. We appreciate your stopping by and hope you agree. If not, that is fine too. Our goal is to promote discussion of these important issues, not to push an agenda. If you are interested in any of our services please feel free to stop by our website. To save you time, you can learn more about Wyoming Limited Liability Corporations here. Our article goes into detail about the benefits of Wyoming companies, INCLUDING their extremely competitive fee structure. Have a great day and we look forward to being partners in business for years to come.