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Sole Proprietorships in Wyoming

by Norris Law Group on August 11, 2014

Sole Proprietorships in WyomingPerhaps you have a hobby that involves making things in your home in Wyoming. People have said that the things that you make are “good enough to sell” and you are thinking about turning your hobby into a small business. While you think you may be able to make money selling your handcrafted items on Etsy or in local stores, you may not be sure if starting a corporation might be “too much.” If you are considering starting a small business in Wyoming, you should know that Wyoming offers a series of options for those wishing to start a company in the state. One is known as a “sole proprietorship.” A sole proprietorship is basically just what it says it is: the business and the owner are one and the same. No business entity, such as a corporation, is created for a sole proprietorship. This “traditional business” model has some advantages and disadvantages.

Advantages of a Sole Proprietorship in Wyoming

  • No business entity filings or fees required; no charge to get started
  • The owner makes all decisions for the business
  • No separate taxes; owner pays all tax for the business
  • Owner may register a trade name (example: “Violet’s Handmade Silk Flowers” or “Buzz’s Saws”)
  • Owner and business share liability in the event of a lawsuit; owner’s personal assets are at risk
  • If the owner dies, the business “dies” along with him or her
  • Must be financed by owner; business financing may not be available.

Disadvantages of a Sole Proprietorship in Wyoming

You can set up a sole proprietorship in Wyoming today—right now, in fact. You can “hang a shingle” and start a legal sole proprietorship at any time. It may be wise to consult with a tax professional about tax implications associated with a sole proprietorship, or go over the rules yourself at http://www.irs.gov.

Attorney Graham Norris and his associates at the Norris Law Group serve the residents of Utah County, UT and throughout Utah, Wyoming and Idaho. Contact them today at 801-932-1238 or online for a free consultation.

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