Perhaps you are hoping to form an LLC in Wisconsin. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Wisconsin.
On this page, you’ll learn about the following:
Wisconsin LLC Cost of Filing
Here are the costs involved in forming an LLC in Wisconsin.
Cost of Filing Formation Certificates
The Wisconsin Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Wisconsin Department of Revenue.
Wisconsin Domestic LLC
- Online Filing costs $130
- Annual Report Fee costs $25
- Name Reservation fee costs $15
- By mail: Fill out the Application Form PDF and submit it to the following address, State of WI – Dept. of Financial Institutions, P.O. Box 93348, Milwaukee, WI 53293. costs $170
Wisconsin Foreign LLC
- Online filing costs $100
- Annual Report Fee costs $25
- Name Reservation fee costs $15
- By mail: Fill out the Application Form PDF and submit it to the following address, State of WI – Dept. of Financial Institutions, P.O. Box 93348, Milwaukee, WI 53293.
You can visit the Official Wisconsin Department of Revenue website to learn more about Business filings.
Note that filing online is ideal, not only because you need to go to the Department of Revenue office, but also it would be faster. You won’t have to wait in a queue in doing so.
Wisconsin LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Wisconsin, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Wisconsin Department of Revenue for regulatory boards or agencies requiring licensing.
Wisconsin LLC Taxes to Be Paid
The business LLCs in the State are subject to different tax filing obligations. Though the taxes may vary among cities and counties.
Wisconsin State Income Tax
This is the State Tax levied on any income you pay to yourself. The tax rate varies between 3.54% to 7.65%, depending on the total amount of taxable income.
Wisconsin Sales tax
The standard rate of sales tax applicable is at the rate of 5.00% and the rate can go higher up to 5.6% after the addition of local county tax.
Wisconsin Federal Self-Employment tax
Any profit that Wisconsin LLC Business members draw out from the business is liable to pay self-employment tax. The standard tax rate is 15.3%.
Employer Payroll Tax Withholding
If you hire employees in Wisconsin, you must withhold payroll tax from their salaries. The standard rate of withholding is 7.65% of the taxable salary of the employees.
Wisconsin Property Tax
The State imposes one of the highest property taxes in the country. The State’s average property tax is 1.68% which generally applies to furnishings and equipment owned by businesses in the State.
Cost Comparison Among States
Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to Wisconsin, read the table below:
State | Filing Fee | Annual Fee/Biennial Fee | Sales tax |
Wisconsin LLC | $130 | $25 (annual) | 5.00% |
Minnesota LLC | $135 (mail)$155 (online) | $0 | 6.875% |
Michigan LLC | $50 | $25 (annual) | 6% |
Illinois LLC | $150 | $75 (annual) | 6.25% |
Iowa LLC | $50 | $45 (Biennial) | 6% |
The contributing sectors to Wisconsin’s economy are manufacturing, agriculture, and health care. Other sectors include tourism and information technology. The State falls in the higher income states in the United States.
Other Costs
- Wisconsin Name Reservation: $15 for filing by mail
- Doing Business As (DBA): $15 for online filling
- Certified Document Copies: $10
- Certified of Good Standing: $10
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Wisconsin LLC: $20
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
How Much Does It Cost to Maintain an LLC in Wisconsin
To maintain an LLC in Wisconsin you will need to pay an annual fee of $25 along with state income tax at 3.54% to 7.65%, sales & use tax at 5%, and federal taxes.
Costs associated with maintaining an LLC in Wisconsin can vary depending on several factors. One of the key costs to consider is the annual report filing fee, which is required by the state to keep your LLC in good standing. This fee typically ranges from $25 to $75, depending on when the report is filed and whether it is done online or by mail.
Another cost to factor in is the Registered Agent fee, which is also required by the state. A Registered Agent is a designated person or company responsible for receiving legal documents and official correspondence on behalf of the LLC. This service typically costs around $50 to $150 per year, depending on the provider.
In addition to these recurring costs, there are also other expenses to consider, such as business license fees, permit fees, and taxes. While these costs may vary depending on the nature of your business and its location, it’s important to budget for these expenses to avoid any surprises down the road.
Maintaining an LLC in Wisconsin also comes with certain responsibilities that should not be overlooked. Failure to comply with these responsibilities can result in penalties, fines, or even the dissolution of your LLC. Some of the key responsibilities include filing annual reports on time, paying state and federal taxes, and keeping accurate and up-to-date records of your business activities.
Aside from the financial costs and responsibilities, maintaining an LLC in Wisconsin also requires a certain level of time and effort. It’s important to stay organized and keep track of important deadlines, such as the annual report filing deadline, to avoid any potential issues. Maintaining good communication with your Registered Agent and staying up-to-date on any changes in state laws and regulations is also crucial to ensure compliance with state requirements.
While there are costs and responsibilities associated with maintaining an LLC in Wisconsin, the benefits of operating as an LLC far outweigh the challenges. An LLC provides limited liability protection to its owners, which means that their personal assets are protected in case of business debts or legal claims. Additionally, an LLC offers flexibility in terms of management structure and tax options, making it an attractive option for many small businesses.
In conclusion, while the costs and responsibilities of maintaining an LLC in Wisconsin should not be underestimated, the benefits of operating as an LLC make it a worthwhile investment for many entrepreneurs. By staying organized, budgeting for associated expenses, and staying compliant with state requirements, you can ensure the longevity and success of your LLC for years to come.
In Conclusion
The cost of Wisconsin is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.