How to Create a General Partnership in Wyoming: A Beginner’s Guide


Steve Goldstein
Steve Goldstein
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Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

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Create a General Partnership in Wyoming

Forming a general partnership in Wyoming can be a great way to combine your skills, resources, and ideas to create a thriving business. In Wyoming, also known as The Equality State, general partnerships are relatively easy to establish, making them an attractive option for entrepreneurs who want to keep things simple and cost-effective.

This article will guide you through the essential steps to start a general partnership in Wyoming. From understanding the legal requirements and drafting a partnership agreement to registering your partnership and obtaining necessary permits, we’ll provide you with the necessary tools and insights to help you launch your business venture. Whether you’re opening a boutique retail store or a cutting-edge tech startup, this comprehensive guide will help you navigate the process of starting a general partnership in Wyoming.

What is General Partnership In Wyoming

It is a business structure where two or more people come together to form a jointly owned business. In the general partnership business, the partners agree upon sharing assets, responsibilities, profits, and liabilities (legal & financial). In a general partnership, Partners consent to carry potentially unlimited liability personally. Liabilities are not restricted as they would be, for example, in a limited liability partnership (LLP) or a limited liability company (LLC) structure. Unlike the LLCs, a partner, in this case, can be legally sued for any business debts, and a possibility of seizure of personal assets can occur.

Before you start setting up your general partnership, it is advised that you consult a legal person. They will know what is best for you and your business. You can always form an LLC instead of a general partnership to protect your personal assets from business debts.

LLCBuddy Editorial Team

How to Create a General Partnership in Wyoming

To create a general partnership in Wyoming, you must follow the guidelines below: forming a business name, making a partnership agreement, requesting an EIN, getting a license and permit, getting a state-based tax ID, and opening a bank account.

Step 1: Choose a Business Name in Wyoming

Naming your business is one of the most crucial activities during the startup phase. Your general partnership name is the foundation for your brand in Wyoming and is what clients use to connect you to the products or services you offer. Legal procedures should be taken into account when choosing your partnership name. Choose a business name that will enable you to develop a strong brand identity without being hampered by irrelevant factors.

If you want to set up an LLC, there is a complete guide on Wyoming LLC name guidelines for a proper business name. Here are some guidelines you must follow while naming your general partnership-

  • Name availability: The name should be available, and no other entity should have the same name in Wyoming.
  • Trademarks
  • Limit of restricted words that need a license in Wyoming

In Wyoming, if you register your general partnership business with the Wyoming Secretary of State, then the name you choose will be the company’s official name. On the contrary, unregistered general partnership businesses use the last name of all of their partners by default. For instance, if Selena Gomez and Hailey Beiber enter business together, the partnership name is “Gomez & Bieber” by default if unregistered. However, if you would like to form a business name under something more appropriate, such as “EJI Design and Build,” then you’ll need to file a “Doing Business As (DBA)” name with Wyoming SOS.

In Wyoming, if you do not wish to file your general partnership business right away but want to hold the name that you have decided on, then you can reserve your business name for 120 days. You must file a name reservation application with the SOS to keep the name.

Step 2: Make a Partnership Agreement

After you have chosen a business name for your general partnership, the next step would be making a partnership agreement in Wyoming. A partnership agreement is a legal contract that specifies how a for-profit company would operate when run by two or more people.

The partnership agreement specifies each partner’s roles within the company, their ownership stakes, and their share of profits and losses. Additionally, it discusses business management guidelines and potential contingencies that may arise, such as a partner’s passing or a partner’s decision to leave the partnership. A partnership agreement should include the following:

  • Name of Partners
  • The principal address of the partnership
  • Purpose of the partnership
  • Terms of the partnership
  • Partnership start date and end date (if not for infinite time)
  • Partnership dissolution terms (for finite partnership)
  • Capital contribution of partners
  • Share of Interest of Partners
  • Profit distribution of partners (equal distribution by default, if not specifies any special condition)
  • Salary distribution (if applicable)
  • Partnership Management Terms
  • Terms of Partnership Sale

These key factors must be considered when forming or creating a partnership agreement in Wyoming. In this way, all business partners will understand what this is about and how to proceed if the mentioned scenarios happen in Wyoming.

Without a Partnership Agreement, your company will often be subject to the general partnership default laws of Wyoming. The default laws in Wyoming might not be appropriate for your requirements. Hence, it is important to have a transparent agreement while forming a partnership.

Step 3: Request an EIN in Wyoming

After documenting the partnership agreement, you should get or request an Employer Identification Number (EIN). An EIN will serve as the tax ID for your general partnership. EIN can be obtained from the Internal Revenue Service (IRS). It is a 9-digit number similar to Social Security Number. EIN, however, is distinct from SSN. It is only used for business-related activities, particularly for submitting general taxes. The form must be completed and uploaded to the IRS website. Getting EIN is necessary whether you are opening an LLC in Wyoming, or a general partnership, or something else.

The application of an EIN in Wyoming can be through the following:

  • Apply Online- You can apply for EIN online, which is the most desirable and fastest method for users.
  • Apply by Fax- Another method of obtaining EIN is to fax Form SS-4 (PDF) after entering all the correct information to (855) 641-6935.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is 4 weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

After you have your EIN number, you can benefit in several ways. It will provide your general partnership with the final advantage necessary to operate fully without encountering legal or judicial issues. For more details about EIN for your business, you may check why you need EIN.

Step 4: License and Permit for General Partnership in Wyoming

Before your general partnership business operates in Wyoming, you must have a business license first. A business license is a document issued by a government agency that permits you to operate your business in the geographic region that that agency governs.

To legally operate your partnership, you must apply for a business license to Wyoming Secretary of State. In some states, you might need to obtain a Privilege License. Based on the business structure, you might need it. In Wyoming, partnership businesses do not need to get to obtain a privilege license. You might even need more than one license in Wyoming. Numerous general partnership licenses need to be filed and renewed regularly.

Step 5: Obtain Wyoming Tax ID Number

In Wyoming, to conduct a business, you must comply with the Wyoming Department of Revenue. If you have a general partnership in Wyoming, you must obtain the Wyoming Tax ID number from Wyoming Department of Revenue. Your partnership business must pay state taxes (if applicable).

Step 6: Open a Bank Account

Once you have filed and received your general partnership license, you should now open a bank account since you will use this account for yourself, your clients, and your employees.

Your business dealings in Wyoming might be simpler with a US business bank account because it boosts your company’s legitimacy and liquidity. Most banks demand an EIN for creating a business bank account for firms other than sole proprietorships. Also, keeping separate finances helps you avoid combining personal and professional finances.

Example of General Partnership in Wyoming

Individuals looking to collaborate and numerous kinds of service providers have chosen general partnerships as their preferred business entity. That’s frequently because of its simple design, low price, and simplicity of setup. Some general partnership examples include:

  • Providing professional services (architectural firms, medical clinics, etc.)
  • Selling goods at retail
  • Opening a restaurant
  • Business Consulting

General partnerships are also formed by partners who are spouses or other family members who want to operate a business together.

Important Information

Maintaining Business License in Wyoming

Now that you have established your general partnership, you must maintain or renew your business license every now and then. Make time to check the status of your licenses at least once per year. Then, you can keep from missing anything significant. If there are any issues, you can address them.

Paying your Taxes in Wyoming

Even if you have established your general partnership in Wyoming, pay your taxes and keep everything up to date so you won’t pay any penalty. Wyoming tax information will help you with what to pay before or during the operation of your professional corporation. You must check with Wyoming Department of Revenue for more details.

Advantages of General Partnership in Wyoming

  • Foundation only requires two people: Forming a general partnership doesn’t need many people to operate. You can form a general partnership with a partner in mind and a business plan. It can be a group of friends or colleagues, a family member, or a spouse and wife partnership.
  • Equal Rights: Everyone is granted equal rights when a business is founded using a general partnership; each partner is free to express their ideas and choose what is best for the company’s success.
  • Management Option: One of the advantages of joining a general partnership is the opportunity to select the finest management options for the company. For this reason, large partnerships should draft an agreement describing each partner’s responsibilities inside the business. As a result, each partner’s leadership abilities are enhanced.
  • Flexibility: General Partnership is the basic form of a business structure since it can be converted into any business entity, such as LLC. If you have flexibility in applying for an LLC in Wyoming, you will have default rules set by law, and you need to have an operating agreement for this.
  • Pass-through taxation: The pass-through tax structure will make the general partnership business not pay twice the tax. Due to this structure, most start-ups and entrepreneurs in Wyoming apply for a GP or LLC. And one of the main advantages of a general partnership is that partners don’t have to pay for the losses collectively.

FAQs

What is a general partnership in Wyoming?
A general partnership in Wyoming is a type of business entity that is owned by two or more individuals. All partners are personally liable for the debts and obligations of the partnership.
What are the benefits of a general partnership in Wyoming?
A general partnership in Wyoming offers several benefits, including pass-through taxation and the ability to share profits and losses among the partners. It is also easy to form and can be used to conduct business in multiple states.
What are the tax implications of a general partnership in Wyoming?
A general partnership in Wyoming is a pass-through entity, meaning that the partnership itself does not pay income tax. Instead, the profits and losses of the partnership are reported on the individual income tax returns of the partners.
Who can form a general partnership in Wyoming?
Any two or more individuals, including individuals, corporations, or other business entities, can form a general partnership in Wyoming.
How do I form a general partnership in Wyoming?
To form a general partnership in Wyoming, you must file a Certificate of Partnership with the Wyoming Secretary of State. You will also need to create a partnership agreement that outlines the rights, duties, and responsibilities of the partners.
What are the filing requirements for a general partnership in Wyoming?
A general partnership in Wyoming is required to file an Annual Report with the Wyoming Secretary of State. The Annual Report must be filed by the last day of the month in which the partnership was formed.
What are the legal obligations of a general partner in Wyoming?
All partners in a general partnership in Wyoming are personally liable for any debts and obligations of the partnership. Partners are also responsible for any wrongful acts of the other partners with regard to the partnership business.
What are the steps to dissolve a general partnership in Wyoming?
To dissolve a general partnership in Wyoming, the partners must sign and file a Certificate of Dissolution with the Wyoming Secretary of State. In addition, the partners must take steps to wind up the business, including collecting all assets, paying creditors, and distributing any remaining assets to the partners.
What are the requirements for forming a general partnership in Wyoming?
To form a general partnership in Wyoming, you must register your business with the Wyoming Secretary of State’s office. You will also need to register with the Wyoming State Tax Commission and obtain a Wyoming business license. Additionally, you will have to file a Certificate of Partnership with the Wyoming Secretary of State.
What is the liability of a partner in a general partnership in Wyoming?
Partners in a general partnership in Wyoming are personally liable for any debts or obligations of the partnership. They are also liable for any negligence or wrongful acts of other partners.
What is the difference between a general partnership and a limited partnership in Wyoming?
The primary difference between a general partnership and a limited partnership in Wyoming is that in a limited partnership, only one or two partners are liable for the debts or obligations of the partnership. The other partners in the limited partnership do not have any personal liability.
Is a general partnership in Wyoming required to file an annual report?
Yes, a general partnership in Wyoming is required to file an Annual Report with the Wyoming Secretary of State’s office each year. The Annual Report must include the business’s name, address, and information about the partners.
How do I dissolve a general partnership in Wyoming?
To dissolve a general partnership in Wyoming, you must file a Certificate of Dissolution with the Wyoming Secretary of State’s office. The dissolution must also be approved by all the partners. You will also need to notify the Wyoming State Tax Commission and any other relevant regulatory agencies.
What are the advantages of forming a general partnership in Wyoming?
A general partnership in Wyoming offers flexibility and liability protection for each of the partners. It is relatively easy to create and has no formal filing requirements with the Wyoming Secretary of State.
What are the disadvantages of forming a general partnership in Wyoming?
The biggest disadvantage of a general partnership in Wyoming is that each partner is personally liable for the debts and obligations of the business. This means that each partner could be held personally liable for any lawsuits or other liabilities of the business.
Who is liable for debts and obligations of a Wyoming general partnership?
All of the partners in a general partnership in Wyoming are personally liable for the debts and obligations of the business. This means that each partner could be held personally liable for any lawsuits or other liabilities of the business.
Are there any filing requirements for a general partnership in Wyoming?
Yes, a general partnership in Wyoming must file a Certificate of Partnership with the Wyoming Secretary of State. This document must include the names and addresses of all of the partners, as well as the name of the registered agent.
What is a registered agent for a general partnership in Wyoming?
A registered agent for a general partnership in Wyoming is an individual or business entity authorized to receive legal and tax documents on behalf of the partnership. The registered agent must have a physical address in Wyoming.
Do I need to register my general partnership in Wyoming with the Internal Revenue Service?
Yes, you will need to register your general partnership in Wyoming with the Internal Revenue Service in order to obtain an Employer Identification Number (EIN). This number is required for tax purposes.
Is there a filing fee for forming a general partnership in Wyoming?
Yes, there is a filing fee of $50 to register a general partnership in Wyoming with the Wyoming Secretary of State.
Are there any ongoing filing requirements for a general partnership in Wyoming?
No, there are no ongoing filing requirements for a general partnership in Wyoming.
Do I need to have a written agreement for a general partnership in Wyoming?
Yes, it is important to have a written agreement detailing the structure and management of the business. This agreement should be signed by all of the partners.
What taxes do I need to pay for a general partnership in Wyoming?
A general partnership in Wyoming is required to pay federal income taxes on the business’s profits, as well as state and local taxes. Depending on the structure of the business, additional taxes may be due.
Are there any requirements for keeping records for a general partnership in Wyoming?
Yes, it is important to keep accurate records of the business’s income and expenses. These records must be maintained for at least seven years and should be in a secure location.
Are general partnerships in Wyoming subject to audit?
Yes, general partnerships in Wyoming are subject to audit by the Internal Revenue Service and the Wyoming Department of Revenue.
What are the requirements for dissolving a general partnership in Wyoming?
To dissolve a general partnership in Wyoming, the partners must file a Certificate of Termination with the Wyoming Secretary of State. The partners must also notify any creditors and settle any outstanding debts or liabilities.
What are the rules for foreign general partnerships in Wyoming?
A foreign general partnership in Wyoming is a general partnership that is formed in another state but is registered to do business in Wyoming. A foreign general partnership must file a Certificate of Registration with the Wyoming Secretary of State.
How do I change the name of a general partnership in Wyoming?
To change the name of a general partnership in Wyoming, you must submit an amendment to the Certificate of Partnership with the Wyoming Secretary of State.
Does a general partnership in Wyoming need to appoint a registered agent?
Yes, a general partnership in Wyoming must appoint a registered agent with a physical address in Wyoming. The registered agent is responsible for receiving and forwarding legal documents to the partnership.
Does a general partnership in Wyoming need to have a business license?
Yes, a general partnership in Wyoming may need to obtain a business license depending on the type of business being conducted.
Is a general partnership in Wyoming required to have a business bank account?
Yes, it is important to have a separate business bank account for the general partnership in Wyoming. This will help keep business finances separate from personal finances.

Also Read

Why Create General Partnership Wyoming is So Important

One of the primary reasons for prioritizing the creation of a general partnership in Wyoming is the simplicity and flexibility it offers to business owners. Unlike other business structures, such as corporations or limited liability companies, general partnerships do not require formalities like registration with the state or complex operating agreements. This makes setting up a general partnership a straightforward and cost-effective process, which can be a significant advantage for entrepreneurs looking to quickly get their business up and running.

Additionally, general partnerships in Wyoming provide business owners with the ability to easily allocate profits and losses among the partners as they see fit. This flexibility allows partners to tailor the partnership agreement to suit their individual needs and priorities, ensuring that each partner’s contributions and interests are appropriately recognized and rewarded. By having the freedom to determine profit-sharing arrangements and other important aspects of the partnership, business owners can establish a fair and equitable relationship that fosters trust and collaboration among partners.

Another compelling reason why creating a general partnership in Wyoming is crucial is the protection it offers to the partners’ personal assets. In a general partnership, each partner is personally liable for the debts and obligations of the business, which means that their personal assets are at risk if the partnership incurs liabilities. However, by establishing a general partnership in Wyoming, partners can take advantage of the state’s strong asset protection laws, which shield personal assets from being used to satisfy the partnership’s debts. This protection can give partners peace of mind knowing that their personal assets are safeguarded in the event of any unforeseen issues or disputes within the partnership.

Furthermore, general partnerships in Wyoming are governed by favorable tax laws that can provide partners with significant tax benefits. Unlike corporations, general partnerships are not subject to double taxation, which means that profits generated by the partnership are only taxed at the individual partner level. This can result in substantial tax savings for partners, as they can deduct business losses against other income on their personal tax returns.

Overall, the decision to create a general partnership in Wyoming is a strategic move that can greatly benefit business owners in various ways. From the simplicity and flexibility of the business structure to the asset protection and tax advantages it offers, establishing a general partnership can set businesses up for success and sustainability in the long run. By taking advantage of Wyoming’s business-friendly environment and favorable legal landscape, entrepreneurs can create a solid foundation for their partnership that promotes growth, profitability, and collaboration among partners.

Conclusion

In conclusion, starting a general partnership in Wyoming may effectively combine resources, expertise, and creativity to achieve your mutual business goals. By understanding the legal requirements, drafting a thorough partnership agreement, and registering your partnership, you’ll be well on your way to a successful collaboration. As you embark on this exciting journey, remember to maintain open communication and stay committed to the shared vision that inspired your partnership in the first place.

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