You need to enable JavaScript in order to use the AI chatbot tool powered by ChatBot

What Do Therapists Need to Know About Taxes in Wyoming?

Wyoming is one of the most business-friendly states in the country — no personal income tax, low fees, and minimal bureaucracy. But private practice therapists still need to handle federal taxes, licensing, and business structure decisions correctly. Here’s your 2025 guide.


Who this guide is for

This guide is for:

  • Licensed Wyoming therapists (LPCs, LMFTs, LCSWs, psychologists, etc.)
  • Solo or group practice owners
  • Clinicians offering in-person or telehealth services
  • Therapists earning self-employed or 1099 income

Step 1: Pick the right structure for your practice

Entity structure matters for liability, tax filings, and how you get paid.

Sole Proprietorship

  • No filing unless using a trade name
  • No legal separation between you and your business
  • No state income tax, but full federal self-employment tax applies
  • Must register a DBA with the Secretary of State if not using your personal name

PLLC (Professional LLC)

  • Wyoming allows licensed professionals to form PLLCs
  • Offers personal liability protection
  • Taxed as a sole prop by default unless you elect S Corp
  • Requires Articles of Organization and annual report

S Corporation

  • Can reduce federal self-employment tax
  • Makes sense around $75K+ net income
  • Requires payroll, bookkeeping, and separate tax filings
  • No extra state S Corp tax or franchise fee in Wyoming

Professional Corporation (PC)

  • Permitted for licensed professions in Wyoming
  • More admin-heavy, but offers corporate structure
  • Can elect S Corp status if desired
  • Often used by multi-owner or large group practices

Step 2: Know your state tax obligations

No personal income tax

  • Wyoming does not tax individual or pass-through income
  • No state quarterly payments or income tax filings

Business license and permits

  • No state-level business license requirement
  • Some counties or cities may require local business permits — check with your locality

Annual report

    • All business entities (PLLC, PC, etc.) must file
  • Due on the first day of the anniversary month
  • $60 fee (more if you own property >$250K)
  • File with the Secretary of State online

Step 3: Pay taxes throughout the year — not just in April

Federal estimated taxes

  • Required if you expect to owe $1,000+
  • Due quarterly: April 15, June 15, Sept 15, Jan 15
  • Applies to all self-employment or pass-through income

Self-employment tax

  • 15.3% on net income for sole props and default PLLCs
  • Can be reduced with S Corp structure + salary

Filing requirements

  • Sole prop: Schedule C (federal only) + annual report (state)
  • PLLC: Schedule C + annual report + local licenses (if required)
  • S Corp: Federal 1120-S + payroll + annual report

Step 4: Track and claim your deductions

Smart deductions still reduce federal tax liability — even if Wyoming doesn’t tax income.

Deductible expenses for therapists

  • EHR and billing software
  • Rent or home office
  • Marketing and directories
  • License renewals, CEUs, supervision
  • Internet, phone, and supplies
  • Professional liability insurance
  • Health insurance premiums (if self-employed)
  • Retirement contributions (Solo 401k, SEP IRA)

Step 5: When it’s time to consider an S Corp

An S Corp saves on federal self-employment taxes once you’re netting ~$75K.

  • Pay yourself a W-2 salary
  • Take remaining income as distributions
  • Avoid self-employment tax on distribution portion
  • Keep up with federal and payroll filings

Step 6: Common mistakes therapists make

  • Forgetting to file the Wyoming annual report
  • Assuming no taxes = no paperwork
  • Missing federal estimated payments
  • Electing S Corp but not running payroll
  • Skipping expense tracking — leading to overpaid taxes
  • Not separating personal and business accounts

Step 7: Our recommendations by income level

Net Income Range

Suggested Action

Under $50K

Sole prop or PLLC; federal estimated payments only; minimal state fees

$50K–$100K

Consider S Corp; implement payroll; stay on top of federal filings

Over $100K

Full S Corp setup; maximize federal deductions; CPA support recommended

Need help figuring this out?

We help Wyoming therapists structure their practices, reduce their federal tax burden, and handle compliance — all without unnecessary overhead.

Book a consult or email us at david@leichtercpa.com

Disclaimer: This guide is for informational purposes only and does not constitute legal, tax, or financial advice. While we make every effort to keep the content accurate and up to date, state laws and regulations can change without notice. You should consult a licensed professional in your state before making any decisions based on this information. Leichter Accounting Services is not liable for any errors or omissions, or for any actions taken based on the contents of this guide.