Starting a limited liability company (LLC) in Wisconsin offers several advantages. The filing fees are relatively low, and the LLC formation process is straightforward. Plus, LLCs help protect your personal assets from business debts and might offer tax benefits, too.
Whether you’re a freelancer, entrepreneur, or starting a small company, an LLC can give your business a formal structure without the hassle of dealing with complex regulations. If you’re wondering how to start an LLC in Wisconsin, you can get started with these steps.
How to get an LLC in WI in 6 steps
Wisconsin LLC registration is easy when you break it into these manageable steps.
1. Name your Wisconsin LLC
Before you can register your LLC in Wisconsin, you’ll need to choose a unique business name to include in your articles of organization. Names must comply with Wisconsin’s naming requirements, including:
- Your business name must include the words Limited Liability Company, Limited Liability Co. or Limited Company or Limited Co., or the abbreviations L.C. or L.L.C. (with or without periods), Ltd. Co., Ltd. Company, Ltd. Liability Co., or Ltd. Liability Company.
- The business name also cannot contain words used to name a government agency, like “FBI” or “Treasury,” as well as certain restricted words (bank, lawyer, insurance, etc.) unless you’ve completed the additional documentation and licensure paperwork.
- Most importantly, your name must be different from an existing business in the state. You can use the Wisconsin Department of Financial Institutions Business Name Search Tool to perform a WI LLC lookup and check if the name you want is available.
If you aren’t ready to register your LLC but are concerned your name might be taken by someone else, you can reserve it for a small fee. In Wisconsin, names may be reserved for up to 120 days by paying a $15 fee and submitting a Name Reservation Application to the Department of Financial Institutions.
2. Choose your registered agent
Wisconsin LLC owners must appoint a registered agent. This is someone who is authorized to receive legal documents and notices on behalf of your LLC. It can be a person (you can be your own registered agent or appoint an employee of your LLC), or you can use a registered agent service. Your Wisconsin registered agent must meet the following criteria:
- Entities (or companies) must be a registered agent service.
- The registered agent must have an address in Wisconsin.
- The registered agent must be on-site and available to accept documents during regular business hours.
While you can be your own registered agent, using a service can help maintain your privacy by keeping your personal address off public records. A registered agent service can also handle important legal notices more quickly if you’re often out of town.
3. Prepare and file articles of organization
The Wisconsin LLC application form is called the articles of organization. This document provides basic information that officially establishes your LLC business structure with the state. You can fill out a relatively simple online form and submit it to the Wisconsin Department of Financial Institutions. You can also send it by mail.
To file Wisconsin LLC articles, you’ll need the following information:
- Your business name and principal office address.
- The name, address, and email address of your registered agent.
- The name and address of each organizer, plus the signature of one or more organizers.
- The name of the drafter of the articles (the person completing the document).
- The name, address, email address, and phone number of a contact person.
LLC formation costs $130 online, while submitting the articles by mail costs $170. The fee is the same for a foreign LLC and a domestic LLC. You can also pay $25 to expedite the service, which means you’ll be first in line for review. Once your Wisconsin LLC articles of organization are approved, the state will issue you a certificate that will allow the LLC to obtain an employer identification number (EIN), business licenses, and a business bank account.
4. Create an operating agreement
An operating agreement is a document that outlines the way your LLC will conduct business. Wisconsin doesn’t require LLC owners to have an operating agreement, but it is an essential component of your business, especially if you have multiple LLC members.
A Wisconsin LLC operating agreement helps define how you’ll conduct business and how decisions will be made. It can include, but is not limited to, the following:
- Information about the articles of organization
- Purpose of the business
- LLC members and their contributions
- How profits and losses will be divided
- How the LLC will be managed
- Procedure for admitting new members, as well as outgoing members
- Indemnification and liability clauses
Having an operating agreement is helpful for various reasons, including settling disputes that may arise between LLC members over financial agreements. Even if you’re a single-member LLC, having an operating agreement can add credibility to your business when you’re dealing with financial institutions or investors.
To create your agreement more efficiently, you can consider using the Wisconsin LLC operating agreement template as a starting point. But it’s always good to seek the advice of a legal professional to avoid any future contingencies in your business. You can also resort to professional service providers, like LegalZoom’s operating agreement service, which will give you the peace of mind that all matters have been addressed, and you can confidently run the company.
5. Get an employer identification number and open a business bank account
A federal employer identification number (EIN) is assigned by the Internal Revenue Service to identify your Wisconsin LLC for tax purposes. You’ll need an EIN if you plan to hire employees, open a business bank account, or file certain types of taxes. The good news is that getting an EIN is free and easy. You can obtain your EIN, also called a federal tax ID number, by mail or through an online EIN service, such as LegalZoom’s.
Once you have your EIN, open a business bank account. Keeping your personal and business finances separate is important for maintaining liability protection and making tax filing easier, even for a single-member LLC. Many financial institutions and banks will require your EIN, a copy of your articles of organization, and possibly your operating agreement.
6. Register for taxes and Wisconsin business licenses
Depending on your business, you may need to obtain permits or licenses, like health department permits, zoning permits, home occupation permits, professional licenses, and more. Wisconsin also requires a sales tax permit if your LLC sells goods. You can register for a sales tax permit through the Wisconsin Department of Revenue. If you plan to hire employees, you’ll need to register for employer taxes, such as unemployment insurance and withholding taxes.
You can use the Wisconsin One Stop Business Registration Portal for business tax registration with the Department of Financial Institutions, the Department of Revenue, and the Department of Workforce Development, all at once. The initial registration fee is $20, and your sales tax and other permits will last two years. Then, a $10 renewal fee applies for the next two-year permit.
Certain Wisconsin businesses, from hotels, campgrounds, fitness centers, and food retailers to plant nurseries and cheesemakers, also need state business licenses. You might also need local permits. For example, if you run a restaurant, rent vehicles, or provide lodging in Milwaukee County, you’ll need a permit. Be sure to check with the relevant state and local agencies.
Next steps after forming your Wisconsin LLC
After you complete your LLC formation, there are still a few other things to think about.
- Register a domain name: Even if you don’t sell goods online, you probably will need a website. At the very least, you should reserve the option of having one in the future by buying your domain name now. When you do your Wisconsin LLC search, check if the matching URL is available.
- Get business insurance: Business insurance protects limited liability companies from risks like lawsuits and accidents. General liability, professional liability, or workers’ compensation insurance are common options depending on your business and whether you have employees. Talk to an insurance agent to find the best coverage.
- Obtain a Certificate of Good Standing: A Certificate of Good Standing proves your LLC is legally registered and compliant. You might need it for contracts, loans, or expanding into other states. You can request one from the Wisconsin Department of Financial Institutions for $10.
- Consider a foreign LLC: If you plan to do business outside Wisconsin, you’ll need to register your LLC as a foreign entity in those states. Each state has its own process for filing a Certificate of Registration.
- Protect your name and logo with a trademark: A trademark protects your business name, logo, or slogan from being used by others. It’s an important step if you plan to grow your brand. You can register a trademark through the U.S. Patent and Trademark Office (USPTO) or an online trademark service such as LegalZoom’s.
Annual filing requirements for Wisconsin LLCs
All Wisconsin LLCs are required to file an annual report, which updates the state on your LLC’s current business address, registered agent, and any other key information. Most LLCs should file an annual report by the end of the calendar quarter of the anniversary month of the LLC's formation. The filing fee for the annual report is $40, and you can file online through the Wisconsin One Stop Business Portal. You may also need to pay quarterly tax payments.
Wisconsin LLCs are generally taxed as pass-through entities. This means that the LLC itself doesn’t pay taxes on its income. Instead, the profits and losses of the business are reported on the personal tax returns of the LLC’s members. However, you can choose to have your LLC taxed as a corporation if that better fits your business.
The cost of forming an LLC in Wisconsin
Forming an LLC in Wisconsin involves a minimum of $130 to file the articles of organization. Here’s a breakdown of what you can expect.
- LLC formation: $130 for filing the articles of organization online ($170 by mail)
- Certificate of Good Standing: $10
- Registered agent service: Anywhere from $50–$300
- Operating agreement: $99 and up for an online service
- EIN filing: EIN filing through the Internal Revenue Service is free
Total estimated cost: Depending on whether you choose to use professional services, the total cost to start an LLC in Wisconsin ranges from $130 to $530. You’ll also need to pay $40 each year to file your annual report.
How to start your Wisconsin LLC with LegalZoom
Business owners are busy people. That’s why we offer services to simplify the process of forming your Wisconsin LLC. We’ll guide you through each step, from choosing your LLC’s name to filing your articles of organization.
With LegalZoom, you can also get additional services like registered agent support, EIN filing, and assistance with drafting your operating agreement. Take the guesswork out of LLC formation so you can focus on running your business.
Start an LLC in Any State
FAQs
What are the benefits of an LLC in Wisconsin?
Forming a limited liability company in Wisconsin provides personal liability protection, separates your business and personal assets, and offers flexible management structures. The low filing fees and simple process make it an attractive option for small business owners.
What do I need to set up an LLC in Wisconsin?
To form a limited liability company in Wisconsin, you’ll need to file articles of organization with the Department of Financial Institutions. You’ll also need to select a registered agent, get a federal employer identification number from the IRS, and check whether your business requires specific licenses or permits.
How long does it take to form an LLC in Wisconsin?
The time it takes to form a limited liability company in Wisconsin depends on the filing method. Online filings are usually processed within a few business days, while mail filings take longer due to mailing times and manual processing.
How are LLCs taxed in Wisconsin?
Wisconsin limited liability companies are typically taxed as pass-through entities, meaning profits and losses pass through to the owners’ personal tax returns. However, you can choose to have your LLC taxed as an S corp or C corp. You might also need to pay sales tax, employment taxes, and fees, depending on your business.
Rudri Bhatt Patel contributed to this article.
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