There are several reasons why entrepreneurs choose to start a business in Wyoming. For instance, the state does not share business or personal records with third parties. Since Wyoming does not have an information-sharing agreement with the IRS, a conflict between a state and federal computer does not raise a red flag.
Furthermore, some states require that you have more than one person serve as various officers and directors in your business. Again, not in Wyoming! One person can fill all the required corporate positions, giving you the most flexibility and control.
Here are a few more statistics that highlight the small business ecosystem in the Equality State.
Quick Wyoming Small Business Statistics for Entrepreneurs
- Around 98.9% of all enterprises in Wyoming are small businesses.
- Small business employees account for 63.5% of all employees in Wyoming.
- Veterans make up 7.8% of small business employees and own 9.1% of small businesses.
- Women own 48.1% of small businesses in Wyoming.
- Racial minorities make up 5.7% of small business employees and own 2.4% of small businesses.
- The per capita expendable income in Wyoming is $60,361.
- In 2021, a CNBC report on the “Top States for Business” ranked Wyoming in position 36 out of 50 states.
- Small businesses in Wyoming exported goods worth $872 million in 2019.
- There are 7,751 small businesses invested in the construction industry, the third-largest industry in the state.
- Wyoming’s per capita consumption expenditure is $42,766.
Wyoming Small Business Statistics
1. What is considered a small business in Wyoming?
The Small Business Administration defines a small business differently depending on the industry, but if we use one of the SBA’s definitions—500 or fewer employees—Wyoming has around 70,618 small businesses. That translates to 98.9% of all firms in the state.
Starting a business in the Cowboy State can be difficult due to the complicated red tape and numerous processes involved. However, hiring an LLC (limited liability company) formation service can reduce the overall burden. Read my review of the best LLC services in Wyoming to find out more.
2. How many Wyoming residents are employed by small businesses?
There are 130,605 small business employees in Wyoming. They account for 63.5% of all employees in the state.
Wyoming’s minimum wage is $5.15 per hour. Wyoming and Georgia have the lowest minimum wage in the country. However, because the federal minimum wage is $7.25, Wyoming employees are entitled to that amount unless they are excluded under the Fair Labor Standards Act (FLSA).
There are, however, exceptions to the norm. Tipped employees, for example, must be paid a minimum of $2.13 per hour. Employers are permitted to take a “tip credit” of up to $3.02 per hour. Furthermore, every new employee under the age of 20 is eligible for a training salary of $4.25 per hour for the first 90 days of employment.
3. Wyoming small business statistics by industry
The bulk of small businesses in the state, a total of 9,660, are engaged in the real estate, rental, and leasing sector. The professional, scientific, and technical services sector is next, with a total of 9,382 small enterprises.
With just 58 small firms, the management of companies and enterprises sector is the smallest industry in the state.
4. Wyoming small business ownership by ethnicity
According to 2021 census data, Wyoming has a population of 578,803. Approximately 92.5% of residents are White/Caucasian, 10.1% are Hispanic/Latino, 2.7% are American Indian and Alaska Native, 1.3% are African American, 1.1% are Asian, and 0.1% are Native Hawaiian and other Pacific Islanders.
Here is a breakdown of how small business ownership is distributed among these ethnic groups:
- White/Caucasian — 62,650
- Hispanic — 2,560
- Asian — 700
- Black or African American — 250
- American Indian and Alaska Native — 300
- Native Hawaiian and Other Pacific Islander — 40
5. Wyoming small business ownership by gender
There are 22,707 women-owned small businesses in Wyoming. Around 19,500 of these firms are nonemployer businesses while 3,207 have employees. Men own 33,381 small businesses, 25,500 of which have no employees, while another 7,881 have employees on payroll.
6. Business Taxes in Wyoming
Wyoming is one of just a few states that does not levy a corporate or personal income tax. In fact, Wyoming, with the possible exception of South Dakota, may be the most tax-friendly state in the country. Even states such as Nevada and Washington, which, like Wyoming, do not tax corporation or personal income, levy other significant commercial taxes.
The state’s annual licensing tax is the one notable exception to the overall lack of business taxes. The Wyoming licensing tax is a levy on the assets of a business. This applies to corporations, limited liability companies, and limited partnerships. The tax is either $50 or two-tenths of one mill per dollar of assets ($.0002), whichever is larger.
In its annual State Business Tax Climate Index ranking, the Tax Foundation ranks Wyoming first out of 50 states.
Wyoming requires every business owner to comply with this tax code. Failure to report your taxes on time may attract legal penalties and you could risk having your license withdrawn. However, all is not doom and gloom! Registered agents exist for moments like these.
They liaise with the Secretary of State’s office to make sure that your business is always compliant with state regulations. They’ll send constant notifications to remind you of filing deadlines and also assist with the filing process so that you don’t interrupt your daily business routine.
Read my review of the best registered agents in Wyoming to find out more.
7. Small business financing in Wyoming
On October 12, 1977, the United States Congress approved the Community Reinvestment Act (CRA). Its goal is to encourage banks and financial institutions to serve the convenience and needs of the areas in which they are chartered, especially low- and moderate-income neighborhoods.
Large banks are required by the Community Reinvestment Act to disclose new small business loans. In 2019, reporting banks paid out $194.1 million in loans to Wyoming enterprises with less than $1 million in revenue. The overall reported new lending to firms with loans of $100,000 or less was $208.5 million, while the total reported new lending to businesses with loans of $1 million or less was $449.7 million.
8. How Covid-19 affects small businesses in Wyoming
Wyoming has the 32nd greatest economic exposure to COVID-19 compared with other US states. This is based on the percentage of employees working in industries with a high or medium-high degree of exposure to COVID-19.
Around 47% of all Wyoming employees, or 154,452 people, work in industries with a high or medium-high degree of economic exposure to COVID-19. In total, 38% of all Wyoming employees, or 125,585 people, work in industries with a low or medium-low degree of economic exposure to COVID-19.
9. Wyoming small business export statistics
In 2019, 477 identified businesses exported items worth $1.3 billion from Wyoming. Approximately 375 (or 78.6%) of the exporters were small businesses that shipped items worth $872.0 million. They accounted for 68.7% of all exports by identified businesses.
The Final Word
In the last five years, the Business Council, Wyoming’s economic development agency, has been directly involved in key relocation and expansion successes that show signs of economic diversity.
International companies from industries as diverse as data centers, technology firms, and manufacturers are flocking to the Cowboy State, thanks in part to its business-friendly tax structure. Starting your own business can be intimidating, especially if it’s your first time as an entrepreneur. That is why it is critical that you choose your location very carefully. Wyoming, with its low taxes and simple incorporation rules, is an excellent choice.
- Tax Foundation
- Square Up
- US Census Bureau
- Wyoming Corporate Services
- US Small Business Statistics