Wyoming legislators are set to consider four new bills during the 2025 general session aimed at tightening business regulations to prevent fraudulent practices and deter abuse, Wyo File reports.
The measures, drafted by a special working group under the Legislature’s Joint Corporations, Elections, and Political Subdivisions Committee, seek to address long-standing vulnerabilities in the state’s corporate filing system.
Wyoming has gained a reputation as a hub for corporate registrations, surpassing Delaware in registrations per capita due to its low filing fees, lenient regulations, and strong privacy protections. While these features attract legitimate businesses, they have also drawn scrutiny for enabling fraudulent activity.
The push for reform gained momentum this year, partly driven by Secretary of State Chuck Gray. In May, Gray’s office dissolved three entities linked to North Korea after the FBI flagged them as fraudulent. Gray called for legislative action to ensure the integrity of Wyoming’s business filings.
Fremont County Assessor Tara Berg also highlighted local issues with fraudulent filings, recounting instances where property addresses were used without the owners’ consent. She urged lawmakers to consider the broader implications of such abuses.
Key Legislative Proposals
The working group has introduced four bills targeting key areas of concern:
- Senate File 55 – Third-Party Filers
This bill would require individuals or entities filing more than 10 documents annually with the Secretary of State to register as third-party filers. Registration would mandate personal identification details, including a notarized application.- Proponents argue it will deter fraudulent filings.
- Critics question its necessity, citing existing laws requiring similar registration for commercial registered agents.
- Senate File 56 – Providing False Information to Registered Agents
This measure would allow the state to dissolve entities found to have provided false or fraudulent information to registered agents.- While supported by lawmakers, some registered agents contend the responsibility to verify information should not rest solely on the state.
- Senate File 59 – Registered Agents and Records Access
This proposal would empower county assessors to request confidential records from registered agents via the Secretary of State’s office. Law enforcement could also access these records under certain circumstances.- Proponents, like Berg, argue this will help address misuse of registered agent services.
- Opponents cite the importance of maintaining business confidentiality.
- House Bill 69 – Foreign Adversary Ownership or Control
This bill expands the grounds for dissolving business entities to include ownership or control by foreign adversaries.- Inspired by the North Korean-linked entities dissolved earlier this year, the bill aims to close loopholes allowing foreign adversaries to exploit Wyoming’s system.
While many lawmakers and officials support the reforms, some remain cautious about over-regulating. Critics argue that stricter rules could diminish Wyoming’s appeal as a business-friendly state. Others contend that privacy and legitimate business operations should not be unduly compromised in the pursuit of curbing fraud.
“We must strike a balance between maintaining Wyoming’s competitive edge and addressing the real risks of abuse,” said Sen. Cale Case (R-Lander), chairman of the committee.
