How to Start an LLC in Wisconsin: If you’re interested in setting up a Wisconsin LLC, you’ve come to the right place. Having an LLC not only protects your personal assets but also is less complicated than other business structures. Wisconsin laws make it easy to establish your LLC. On this page, You’ll find all the steps that must be taken to ensure that your LLC has been correctly established. We recommend you read the whole article very carefully, word by word, don’t miss anything 🙂
On this page, you’ll learn about the following:
- How to Start an LLC in Wisconsin
- After Starting Your Wisconsin LLC
- Wisconsin Foreign LLC
- Wisconsin LLC Formation Review
How to Start an LLC in Wisconsin
An LLC or a Limited Liability Company is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection.
If you wish to start an LLC, you mainly have to file your Certificate of Formation with the State and pay a filing fee of $130. There are some more steps to follow to get your LLC established in Wisconsin. The following steps explain everything you need to create your LLC in 2022. Let’s get started! It is always recommended to hire a professional LLC formation service in Wisconsin to set up your LLC.
Step 1: Decide a Name for Your Wisconsin LLC
The very first step while forming an LLC in the state of Wisconsin is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follows all the LLC naming guidelines.
LLC Naming Guidelines in Wisconsin
There are a few specific requirements all the LLCs in Wisconsin have to follow while naming their Company. Some of the most important requirements are as follows:
- Your business name should be available and no other existing business in Wisconsin can have the same name. Perform a name search from the below-mentioned source to be sure your name isn’t taken already.
- “Limited Liability Company”, “LLC”, and “L.L.C.” – any one of these has to be used as a suffix in your business name.
- You cannot use any name for your business that is confusing or misleading. Terms such as “Treasury”, “State Department”, “FBI”, “CIA”, etc. shouldn’t be included.
- Terms like “Bank“, “University“, “Attorney“, “Doctor“, etc can be added only after the additional requirements by Wisconsin State Government are fulfilled.
- (Optional) It’s better to name your business something for which your desired domain is available.
|Important Links –||Submit Offline Form to –|
|Wisconsin Business Entity Search – Online Name Search|
Name Reservation Form – PDF
Name Availability Standards – Guidelines
Wisconsin LLC Name Search – Instructions
|Wisconsin Department of Financial Institutions|
4822 Madison Yards Way, North Tower
Madison, WI 53705
Reserve Business Name for Future
If you do not wish to file your LLC right now but want to hold the name you have decided, then you can reserve your LLC name for 120 days. To keep the name, you have to file a name reservation application and pay $15 to reserve your name with the Wisconsin Secretary of State. By paying $25 you can expedite the process.
Doing Business As (DBA) or Trade Name
Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the Wisconsin Secretary of State by submitting an Application to Register Trade Name in Wisconsin, along with the filing fee of $15.
Recommended: You can do name search, get company logo, business domain, website, emails, and a lot more in one place by hiring a professional service. We recommend using –
TailorBrands – ($49 + State Fees) Online LLC Setup
TailorBrands offer DIY website templates and incredible logo designs. If you plan to get a website then it is wise to have a “.com” domain for your business but these days you can also use other TLDs like “.company”, “.xyz” etc. With TailorBrands, you can get everything you need at an affordable price.
It is not legally mandatory to use the word LLC in your domain name or email. If you want, you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.
Step 2: Assign a Registered Agent in Wisconsin
The second step to forming an LLC in the state of Wyoming is to appoint a Registered Agent. A registered agent is a person or business entity that will act or work on your LLC’s behalf. This person or business will receive important tax forms, legal documents, all notices of lawsuits, and other official government correspondence in Wisconsin. Hence, hiring a competent Wisconsin Registered Agent for your LLC is necessary.
Make sure your registered agent for service of process is a resident of Wisconsin or has a physical street address. Their business address or the principal address should be in Wisconsin. Most LLC formation companies also provide registered agent services. Below are two great LLC setup services; even if you buy their cheapest plan (normally $49/year), you also get registered agent service and other services at a reasonable price.
These LLC formation services are recommended registered agent services as they are authorized to conduct business in Wisconsin. Some LLC formation services offer standalone Wisconsin registered agent services. You can purchase only Registered Agent services from them without purchasing any other LLC formation services.
A person who is above 18 years of age and has a physical address in the state of Wisconsin can be a Registered Agent. A Registered Agent can be an independent person or can be a business entity. One who is responsible for handling all the legal documents.
Yes, you can be your own registered agent if you are a resident of the state of Wisconsin and you are above 18 years of age. To become a registered agent you must have the authority to conduct any type of business in Wisconsin.
Registered Agent Consent Application
In Wisconsin, there is no separate Consent Letter to be produced to the Secretary of State. At the time of change of Registered Agent (or the name or address), the new Registered Agent has to sign the consent letter. It comes with the Application form to Change the Registered Agent. The filing fee of $10 should be paid for it. For more information on the same, read our guide on Wisconsin Registered Agent.
Step 3: File Articles of Organization in Wisconsin
The third and most important step in forming an LLC is to file the Articles of Organization. This Wisconsin Articles of Organization is a legal document needed to officially register your business with the Secretary of State. It costs $130 (online and $170 by mail) to file your formation certificate in Wisconsin. (Read more on LLC cost in Wisconsin).
The Certificate of Formation includes details like the name of the LLC, registered agent’s name, address, employees’ details, and structure of the company (member-managed or manager-managed). Before hiring employees in Wisconsin LLC, one should know about the rules and regulations thoroughly. Also, if you are expanding your existing business (an LLC) to Wisconsin, then you need to register as a Wisconsin Foreign LLC.
How to File Online
Go to the Secretary of State Online Service. You will get the online service page. It does not need you to log in or register with the portal. You can directly start filing your LLC by clicking on the “Online Filing” button below. Read more about the Wisconsin Articles of Organization for online registration.
How to File by Mail
If you prefer filing real-life forms for your LLC registration, then you can download Domestic LLC Formation Form. Read the form thoroughly, fill it out, and mail it to the following address,
State of WI – Dept. of Financial Institutions
P.O. Box 93348
Milwaukee, WI 53293
Processing Time: It takes no time (immediately) to get a Wisconsin LLC if you file it online. For the mail filing, it takes 5 business days to get an LLC. By paying an additional fee, it can be expedited.
Recommended: Online LLC Formation service can provide all these documents in lesser days along with lifetime customer support and 100% accuracy. We recommend using –
TailorBrands – ($49 + State Fees) Online LLC Setup
Step 4: Create Your LLC Operating Agreement in Wyoming
Moving on to the fourth step, filing your operating agreement. An operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
When it comes to filing a Wisconsin LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation. Like Wisconsin, there are other states that do not have a mandatory rule to file operating agreements. But, this document would be useful if you decide to dissolve Wisconsin LLC later. Hence, having an operating agreement may not be necessary, but it is definitely ideal.
Recommended: You can get operating agreement templates at only $29 with TailorBrands. You don’t need to worry about drafting it as they will take care of it on your behalf. We recommend using –
TailorBrands – ($49 + State Fees) Online LLC Setup
Step 5: Filing an LLC EIN in Wisconsin
The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business for that matter.
EIN is needed when the LLC hires employees. Hiring employees in Wisconsin LLC requires following specific rules and regulations. On the other side, EIN for Wisconsin foreign LLC should be obtained if your LLC is based in other states.
To obtain EIN (aka FEIN) one has to fill up a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally complete the form and send it to the address given. You can also get an EIN Assistant who can help you with the process.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
Recommended: This hassle will be reduced when you hire an LLC formation service. They take care of obtaining EIN and all other things for your LLC. We recommend using –
TailorBrands – ($49 + State Fees) Online LLC Setup
Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
Congratulation, you are now done with all the necessary steps to form your LLC in the state of Wisconsin. If you do it yourself, it should take you a long time to properly understand and do all the steps.
However, if you use TailorBrands, it should take fewer hours, and you always have a live chat with expert support for any help you need.
After Starting Your Wisconsin LLC
After forming your LLC, there are still some things that you will need. Take note of the following:
- Get a company business bank account
- File Wisconsin business permits & licenses
- Get general liability insurance and professional liability insurance with coverage for employees
- File a Wisconsin LLC annual report or biennial report
This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings, to make sure your LLC is up-to-date.
Cost of Starting an LLC in the State of Wisconsin
Forming an LLC in the state of Wisconsin is no doubt more cost-effective than other structures of a business. There are some fees and charges one has to bear to form an LLC in the state of Wisconsin. LLCs have pass-through taxation. Hence, your LLC won’t bring you a massive tax burden. Here are some of the fees and taxes are needed to be paid while forming an LLC in the state of Wisconsin,
|Fees/Tax||Amount to be Paid|
|Name Reservation Fee||$15|
|Name Reservation Fee (Expedited Fee)||$25|
|Certificate of Formation Fee||$170 (by mail and $130 online)|
|LLC Annual Fee||$25|
In Wisconsin, an LLC name reservation is not mandatory. You can register your LLC name at the time of registering your LLC. If you wish to hold the name for some time without registering your LLC, then you can do that online. Your LLC name will be reserved for 120 days without registering your LLC. It can be done by paying $15.
In Wisconsin, an Annual Report has to be produced every year. It costs $25. Also, the State of Wisconsin requires LLCs to pay a Sales Tax of 5% every year. Read our guide on LLC costs in Wisconsin for more information.
Wisconsin Foreign LLC
If you are interested in forming a Foreign LLC in the state of Wisconsin, then you need to file the Certificate of Foreign LLC to the Wisconsin Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents like the Certificate of Good Standing, etc. to the Wisconsin SOS to form your foreign LLC in the state of Wisconsin. To know more in detail, check out our guide on Wisconsin Foreign LLC.
Reasons to Start an LLC in Wisconsin
Wisconsin is a popular state in the United States today. Not just being the ‘Dairyland’ of the nation, but also for its strong economy. Also, the state is the heart of food businesses. The state has more than thousands of active LLCs at this moment operating in different locations. Lately, the state has become one of the favorite spots for small and new businesses for its vast tax benefits and incentives. Along with the reduction in tax liabilities, the state offers various business funding options. Some of the benefits are discussed below,
Wisconsin Enterprise Zones – Tax Credit
If a limited liability co. Starting its operation in Wisconsin Enterprise Zone or expanding the existing business, the LLC can enjoy huge tax benefits. The Wisconsin Economic Development Corporation has initiated this program under which existing and new businesses will get tax credits and other benefits. Job creation projects, development projects, and such projects will get the advantage of this program. Read more on Wisconsin’s classification of LLC tax.
Development Opportunity Zones – Tax Credit
Another program Wisconsin offers is the DOZ tax credit. Under this program, if a Wisconsin limited liability company starts its operation in Beloit, Janesville, or Kenosha, it may receive tax benefits. If your LLC involves job retention, job creation, development of stressful areas, and high capital investment in such areas, then you may enjoy the credits and incentives.
A certain type of business in Wisconsin gets freed from sales and use tax. As a start-up, if you operate businesses like manufacturing materials and equipment, pollution abatement, waste management, recycling materials, equipment, etc., you might get freed from the tax.
Flexible and Easy Profit Distribution
Unlike a partnership, the profit distribution in LLCs is not equal or 50%. The profit-sharing in LLCs is flexible and depends on the amount of contribution by each member. Also, it is much easier to file LLC documents if you have a registered agent to lend a hand.
Best Businesses in Wisconsin
If you have decided to form an LLC in the state of Wisconsin, it must be the best decision to see the state’s business environment. But before you take any business decision, you should know the state’s overall economy and its top businesses. In the below-mentioned detail, you will get an overview of the following.
Agriculture based businesses
The state is known to produce around 26% of the nation’s cheese with the help of more than a million cows present in the state. More than 8,000 licensed dairy farms in the state produce around 3,37 billion cheeses in a year, with the help of which dairy farms alone have earned $5.4 billion.
Apart from dairy businesses, the state has the best in the class production of potatoes and corn. The state has around 68,700 farms contributing a total amount of $104.8 billion to the state GDP.
Manufacturing is the state’s biggest business industry, which is contributing more than $63.31 billion to the state. There are more than 7,737 active manufacturing firms in the state that are employing more than 475,000 workers. Top products that are manufactured in the state are:-
- Fabricated Metal Products
- Paper industry food and Beverages
- Tobacco products
- Computer and electronic services
- Aerospace equipment
All of these business firms provide 44% of employment to the state’s working population. Also, manufacturing has exported around $21.24 billion of goods, most of which are produced by small businesses.
The healthcare sector accounts to have produced around 92,930 jobs in the state. The healthcare industries have exponential growth, which is shown with the help of health insurance rates. More than 87% of people own health insurance, and the industry mainly aims to provide insurance to low-income families.
Some of the small income businesses that are running in the state are:-
- Health and beauty care business
- Automobile repairing business
- Sports and recreational business
Wisconsin LLC Formation Review
Time needed: 5 minutes.
Just to recap, here are the easy steps again when forming an LLC in Wisconsin. Click on the steps in this list to read the full detail.
- Name your Wisconsin LLC
The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
- Choose a Registered Agent
In Wisconsin, it is mandatory to select a registered agent for your LLC. Get a professional Registered Agent from LLC formation services like NorthWest Registered Agent to get things done hassle-free.
- File a Formation Certificate
Filing a formation certificate is necessary when forming a Limited Liability Company in Wisconsin. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create an Operating Agreement
An operating agreement is not a strict requirement in Wisconsin, but something encouraged when you start an LLC to avoid future conflicts.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity, like a social security number, but for a company.
How Fast Can I Form an LLC in Wisconsin
When filing online for LLC in Wisconsin, the process can be completed immediately, after the payment is done. In person filing may take up to 5 business days.
If you have been thinking about starting a business, one of the first questions you may have is, “How fast can I form an LLC in Wisconsin?” Before you can begin the process of forming an LLC, you need to prepare several things. First of all, you will need a company name. A good idea is to choose a name that reflects your business’s values and goals. Once you have chosen a name, it is important to get a matching domain name for your business. Otherwise, your competitors can simply buy it.
You’ll also need to get a Business Identification Number (EIN) from the IRS. This number is similar to your Social Security number, but is unique to your business. The EIN is also necessary for opening a bank account for your business. This number can be obtained directly from the IRS or through an online service like Incfile.
You can also file the LLC documents by mail. This method will take up to 5 days, while filing online will take less than two business days. The filing fee will cost you about $39. Remember to include an operating agreement when filing documents. This document will outline how your company will operate, reducing the chances of conflicts later on.
You can also get a business income insurance policy, which will reimburse you for the losses you incur. These policies vary depending on the kind of loss you’re claiming. Also, remember to file your business documents with a registered agent to ensure they are handled efficiently. In Wisconsin, LLCs are pass-through entities, which means that members of the business pay tax on their income. However, you can elect to have your LLC treated differently. Otherwise, you’ll pay 7.9% tax on your profits.
An operating agreement is the governing document for your LLC. It will outline the procedures for managing the business, including deciding when to hold meetings, and will include any important documents you need to set up a business. Once you’ve done this, the secretary of state will issue a certificate of existence, which will make it possible to obtain an EIN, get a business license, and open a bank account for your new business.
The articles of organization will contain information about your company, including the name of the organizer, the registered agent, and the effective date of your LLC. You should choose an effective date as soon as possible, since incorporation can take longer than you originally expected. This will ensure that everyone is aware of the rules that must be followed by your new business.
While forming an LLC in Wisconsin, it’s vital to spend some time understanding the processes and filing deadlines. For this, you can consider using a company that offers live chat support, which will make the process much simpler. Companies like TailorBrands are a great option for this because they have a support team that can help you through each step of the process.
If you are a resident of Wisconsin, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
Apart from the formation fee of $130 (domestic LLC) and $100 (foreign LLC), LLC costs in Wisconsin include $25 for Annual Reports every year. LLCs are liable to pay sales tax of 5% every year.
It takes no time (immediately) to get a Wisconsin LLC if you file it online. For the mail filing, it takes 5 business days to get an LLC. If you hire a professional LLC service, then it might take less than that. We recommend TailorBrands, which has an impeccable turnaround time.
Every year all the LLCs have to submit an Annual Report and pay $25 to the Wisconsin Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
Generally, for LLCs, it is a default tax structure. Once you obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens. Read more on the Wisconsin Classification of LLC Tax.
LLCs are easier to establish than other business structures. Small businesses, especially start-ups, can easily start an LLC in the state of Wisconsin at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, and leave a comment below.