Last Updated: December 11, 2024

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How to Start an LLC in Wisconsin

Thinking about launching your own business as an LLC? Wisconsin has many resources for startups, along with a low cost of living and crime rate. LLCs are a popular business structure for small companies for good reasons. But how does one go about starting an LLC in Wisconsin?

Like a corporation, a limited liability company (LLC) must be registered with the state. Also like a corporation, an LLC provides limited liability protection for the LLC owners, who are called “members.” Someone wishing to sue or otherwise collect from the business usually can’t go after the member’s personal assets.

Unlike a corporation, though, an LLC has less paperwork and more flexibility in how it’s run. An LLC also has “pass-through taxation,” meaning that the business profits are usually taxed only on the individual members’ tax returns without first being taxed at the business level. A standard corporation has “double taxation,” meaning that profits are taxed at both the business and individual levels.

Starting an LLC in Wisconsin

While creating a Wisconsin LLC is less involved than forming a corporation, it does require you to follow a set process and meet certain requirements. If you’ve never started a business before, dealing with that red tape can be as irritating as fighting off mosquitoes on a summer hike around Devil’s Lake.

Fortunately, you came to the right place for help. In this guide, we’ll walk you through the steps of starting your own Wisconsin LLC, and we’ll also tell you how our services can make the process easier for you and provide you with the expert support you need.

To start a limited liability company in Wisconsin, you’ll first need to choose a name for your business and appoint a registered agent. To officially apply for an LLC in Wisconsin, you’ll need to file Articles of Organization with the Wisconsin Department of Financial Institutions. Afterward, you can think about creating an operating agreement and applying for an Employer Identification Number (EIN). Lastly, you’ll file your BOI report. Here are the steps:

  1. Name your Wisconsin limited liability company. Choosing a unique and compliant name is one of the fundamental steps in the formation process.
  2. Appoint a registered agent in Wisconsin. It’s essential to have a registered agent (known as a statutory agent in some states) with a physical address in the state for legal correspondence.
  3. File Wisconsin LLC Articles of Organization. This crucial step formally registers your business with the state and involves a filing fee.
  4. Create an operating agreement. Although not mandatory, it’s a wise way to outline the LLC’s management and financial structure.
  5. Apply for an EIN. Usually necessary for tax purposes, this service is often provided by companies assisting with LLC formation.
  6. File a Wisconsin LLC BOI report.

If you’re ready to take your business idea from dream to reality, follow along as we take you through a step-by-step process to create an LLC in Wisconsin.

Note: The directions in this article are for filing a domestic LLC in Wisconsin, meaning one that is formed within the state. If you have an LLC that you’ve formed outside of Wisconsin and want to do business in Wisconsin, you would have to register as a foreign LLC by completing a Foreign Limited Liability Company Application for Certificate of Registration and following a different process.

steps to start an llc in wisconsin

Recommended: Start a Wisconsin Corporation

Step 1: Name your Wisconsin limited liability company

illustration of step 1 in forming an llc in wisconsin

First, find a name for your Wisconsin LLC. Finding the right LLC name is important for marketing. Look for something that’s memorable, lets people know what you’re selling, and accurately reflects your brand.

Apart from those considerations, though, you also need to follow Wisconsin’s rules for naming an LLC. If you don’t, your filing could be rejected, meaning you’ll have to start the whole process over again.

Follow WI LLC name guidelines

Keep these rules in mind when naming your Wisconsin LLC:

  • Your chosen name must be distinguishable from all other business names in Wisconsin. Very minor differences like punctuation, making something possessive or plural, changing minor words like “the” and “a,” and using abbreviations aren’t enough to make one name distinguishable from another.
  • The name must have a “designator” indicating that the business is an LLC. Your name should contain one of the following phrases or abbreviations: “limited liability company,” “limited company,” “LLC,” or “LC.” Capitalization can vary, and you can abbreviate “limited” as “Ltd.” and “company” as “Co.”
  • Words and phrases related to certain industries and professions may need additional paperwork to be approved, such as “bank,” “attorney,” “engineer,” “medical,” etc.
  • You can’t use words in your name that would mislead the public into thinking that your business is a government agency (for example, “federal,” “state,” “police,” etc.).

How do you know if your desired LLC name is available? By searching the Corporate Registration Information System on the Wisconsin Department of Financial Institutions website. You can do this by following the instructions on our Wisconsin Business Entity Search page.

Reserving a Business Name

But even if you conduct a name search, you can’t assume your LLC name is available until the Wisconsin Department of Financial Institutions approves your Articles of Organization. If you do want confirmation that your name’s available, or if you’ve found the perfect name and want to make sure no one else gets it before you can file the rest of your LLC paperwork, you can reserve the name.

Wisconsin allows you to reserve a business name for 120 days for a small fee by completing a name reservation application. This not only reserves your name, but it gives you confirmation from the state that it’s available.

Check for federal and state trademarks

Even if the Department of Financial Institutions approves your limited liability company name, that’s no guarantee that someone else hasn’t already claimed it with a federal or state trademark. To truly know if your business name isn’t trademarked can be difficult because there’s no one single place to check. Some businesses even employ an attorney specializing in trademarks to see if they’re in the clear.

You can take some measures yourself, like searching the trademark database on the United States Patent and Trademark Office website. This can help you determine if someone’s already claimed a federal trademark on the name you want.

State trademarks are applicable within the borders of a state. The Wisconsin Department of Financial Institutions has a trademark search engine on its website where you can see if anyone has a state trademark on your desired LLC name. You’ll need to create a free user account first. If you want, you can also apply for your own state trademark on the site.

In addition to checking these databases, it’s wise to do an internet search for your business name, including checking domain names, social media sites, and even phone directories.

Find a matching domain name

When you’re coming up with a business name, consider whether you can secure a matching domain name. This way, your future website can be more easily found online. We have a tool to help you do a preliminary business name search. Our domain name registration service can help you secure the online name that will best serve your company.

Is your Wisconsin company name available as a web domain?

Having a presence on the web is crucial for most businesses, even if you’re not selling your goods online. When potential clients search for you on the web, you’ll want them to find a website where they can get contact and other basic info about your business.

Because of this, it’s important to get a good domain name that works well with your business name. You’re likely going to be putting that URL on your business cards and other marketing materials, and you want people to be able to remember it and associate it with your business.

The ideal domain name for your company may already be taken, but you can still find others. In fact, if you find a fantastic available domain name, it might be worth naming your business after that URL rather than the other way around.

Our business name search tool can help you find a web address that works for your business. When you find it, you might want to lock it down before someone else takes it.

Similarly, you can check to see what names are available for your business’s social media accounts. Many businesses market on platforms like Instagram, Facebook, Pinterest, etc., so getting the appropriate social media names can be important for keeping your business name circulating.

We have a domain name service to help you find a domain name for your business. We can also help you create a business website and provide domain name privacy.

Trade Names

If you ever intend to do business under a name other than your LLC’s legal name, you may want to secure a “trade name,” which is known in many states as a “doing business as” (DBA) name. A Wisconsin trade name isn’t legally required and doesn’t give you exclusive rights to the name, but it’s a way to notify the public of the use of a certain name or mark. You’ll need to complete a registration form and pay a small fee. The registration expires after 10 years.

Step 2: Appoint a registered agent in Wisconsin

illustration of step 2 in forming an llc in wisconsin

Next, choose a registered agent for your Wisconsin LLC. A registered agent is an individual or business entity responsible for receiving legal and other official notices on behalf of your business. If your business were to be sued, a process server would serve notice in person to your Wisconsin registered agent

Who can be a Wisconsin registered agent?

Your registered agent must have a registered office where they’re available to receive service of process during normal business hours. The registered office doesn’t have to be the same as your business address, though it can be. But the registered office must be a physical street address, not a P.O. box or something similar.

According to Wisconsin law, your LLC’s registered agent must be one of the following:

  • A natural person who resides in this state and whose business office is identical with the registered office.
  • A domestic corporation, nonstock corporation, limited liability company, limited partnership, or limited liability partnership whose business office is identical with the registered office. 
  • A foreign (meaning out-of-state) corporation, nonstock corporation, limited liability company, limited partnership, or registered limited liability partnership if that entity is authorized to transact business in Wisconsin and has a business office identical to the registered office.

The agent must have an email address and a place of business or activity in this state. In addition to forwarding all notices to the LLC members, the agent is responsible for informing the company if they resign and updating the information about themselves in the Articles of Organization.

Registered Agent Services

While it’s possible for you to serve as your company’s registered agent, it’s often better to outsource the role. Some benefits of hiring an outside registered agent service like ours include:

  • Saving face: Being your own registered agent means that you could be served with notice of a lawsuit at your place of business in front of clients.
  • Freedom to leave the office: The registered agent must be present at the office during all normal business hours
  • Staying in compliance: A registered agent service like ours can help ensure your business is compliant with the state regulations for maintaining a registered agent.

What if a process server can’t find my registered agent?

Oftentimes business owners think that serving as their own registered agent or appointing someone they know is the simplest way to meet Wisconsin’s agent requirement. But consider what could happen if a process server is unable to find you or your appointed agent.

This can easily happen if you or your appointed agent aren’t in the office (for example, out of town, sick, taking a spa day, etc.) when someone needs to reach the agent. It can also happen if you or your agent relocates and you fail to update your registered agent information with the state.

In addition to legal penalties for being out of compliance, failing to maintain an agent could mean that a process server can’t find you to notify you that your business is being sued. In such a scenario, a court case against your LLC could go forward without your knowledge, meaning you wouldn’t even have a chance to defend your business.

ZenBusiness can provide your registered agent

When you get our registered agent service, we’ll provide you with an agent in Wisconsin, meaning you’ll always have someone available to receive important legal and government notices. 

This keeps you in compliance with the registered agent statutes and helps you avoid embarrassing scenarios where you could be served papers for a lawsuit in front of clients.

The registered agent service also helps keep your paperwork organized. When you get important documents, we’ll quickly inform you and keep them together in your online “dashboard.” From the dashboard, you can view, download, and/or print them whenever you want. You can stop digging through piles of papers to try to find misplaced critical documents.

Step 3: File Wisconsin LLC Articles of Organization

illustration of step 3 in forming an llc in wisconsin

File Articles of Organization with the Wisconsin Department of Financial Institutions. Once approved, this makes your LLC official. You’ll need to complete the Articles of Organization form either online or by postal mail.

We know that filing government paperwork like this can be a nerve-racking experience for many people, which is why we’re here. With our business formation services, we handle the filing for you to make sure it’s done correctly the first time. But, although we can handle this for you, we’ll show you how the process works below.

Articles of Organization Required Information

Make sure you have the following information on hand before you begin. Be aware that any information you submit for your Articles of Organization will become public record.

  • The name of your LLC
  • The name of your registered agent and the registered office address
  • The type of management your LLC will use, member-managed or manager-managed
  • The names and addresses of each organizer
  • The name and complete address of each of the LLC organizers (the person or persons drafting the document)
  • The preferred effective date (if you don’t want your paperwork to take effect immediately, you can delay it up to 90 days)
  • Signature and printed name of the organizer
  • Information on how to reach the designated contact person
  • Filing fee

Submitting Your Paperwork

You’ll need to include a filing fee with your Articles of Organization. If you file online, the fee is $130 (as of this writing). If you prefer to fill out the document on paper and mail it in, the fee is $170.

Processing is usually immediate when you file online, but processing by mail takes about five business days, plus whatever time is spent in the mail. If filing by mail, you can pay an extra fee to the Department of Financial Institutions for expedited service to have it processed by the end of the following business day.

Member-Managed or Manager-Managed?

As with many states, Wisconsin asks you to list how you plan to govern your LLC, by the members (member-managed) or by a manager or managers (manager-managed).

Many LLCs choose to be managed by the members because they only have a few owners or just one. In those cases, it usually makes sense for the LLC member(s) to do member-management because they’re running the business themselves. All of the members are sharing in running the business and making decisions for it.

Other LLCs prefer to appoint or hire a manager instead. In the manager-managed option, one or more members can be appointed to make management decisions, or someone from outside the LLC can be hired to manage the company.

Manager-management can be helpful when some of the members want only to be investors in the company instead of running the business and making ongoing decisions about it. LLCs with many members also sometimes find it easier to have a manager because it’s difficult to get all the members together to make decisions on a regular basis.

Why would I delay my Wisconsin LLC filing date?

If it’s near the end of the calendar year, some entrepreneurs will delay their LLC filing date to January 1 of the coming year. This allows them to avoid the hassle and cost of having to pay taxes on an LLC in the current year. This is especially true if the future LLC members don’t need to establish the company right away.

Ordinarily, the effective filing date would be the day the Wisconsin Department of Financial Institutions receives your filing. But you have the option to tell the state that you want your effective date to be at a later time. You can have your LLC’s effective date be up to 90 days past the date you submit the filing.

This is another service we provide. When you form your LLC in Wisconsin with us, we give you the option of paying an extra fee to have your LLC’s effective date delayed. (This service is only offered from October to January.)

How to Amend Your Wisconsin Articles of Organization

If approved, you need only file your Articles of Organization once. But if any of the original Articles of Organization information needs to be updated, you’re required to inform the state about the changes.

You would report these changes by filing Wisconsin Articles of Amendment and paying a filing fee. If your Articles of Organization aren’t current, it could impact your ability to get a Wisconsin certificate of status (called a “Certificate of Good Standing” in most states). This document isn’t required to conduct business, but it’s important for business accounts, members, and potential investors. Basically, failing to keep your business up to date with state requirements can limit your LLC’s potential future growth.

If you need help amending your Articles of Organization, we can help with that, too. We have an amendment filing service that can handle the process for you, as well as our Worry-Free Compliance service, which includes two amendment filings every year.

Keep your Wisconsin LLC paperwork organized

If you have us handle filing your Articles of Organization, once the state approves your LLC, your paperwork will be available from your ZenBusiness dashboard, where you can keep it and other important paperwork digitally organized.

Once you get your paperwork back from the state approving your new LLC, you’ll want to keep it in a safe location along with your other important documents. These documents can include your Wisconsin LLC operating agreement, LLC member certificates, legal documents like contracts, compliance checklists, etc. We offer a customized business kit to help you keep these important documents organized and looking professional.

Step 4: Create an operating agreement

illustration of step 4 in forming an llc in wisconsin

Create an LLC operating agreement. An operating agreement is vital for an LLC as it establishes clear guidelines for the internal operations and management structure, helping to prevent misunderstandings and disputes among members. It also reinforces the limited liability status of the LLC by demonstrating to courts that the business is indeed separate from its owners, which can help with personal asset protection. An operating agreement can be tailored to fit the specific needs of the LLC, providing flexibility that may not be available under default state laws governing LLCs. Your Wisconsin operating agreement also makes your company appear more legitimate to banks, investors, potential business partners, and the courts.

While Wisconsin doesn’t legally require you to file an operating agreement, if you don’t have one, your LLC will be governed by default by Wisconsin’s LLC laws, which might not be what you and the other members prefer.

Once an operating agreement is signed by all the members, it becomes a legally binding document. It doesn’t need to be filed with any government office, but you can keep it with your other important legal business documents. 

What should be included in the agreement?

Common topics covered in an LLC operating agreement may include:

  • Procedures for admitting or removing members
  • Allocation of profits and ownership
  • Duties and responsibilities of the members
  • Management structure and voting requirements
  • What happens to a member’s ownership if they die or become incapacitated
  • Procedures for dissolving the LLC and dividing its assets

If you’re not sure how to go about creating an operating agreement for your LLC, we have a operating agreement template to help get you started.

Step 5: Apply for an EIN

illustration of step 5 in forming an llc in wisconsin

Get an Employer Identification Number (EIN). This nine-digit number (also known as a federal tax identification number or a federal employer identification number) acts like a Social Security number for your business. It’s used for tax and financial paperwork, including filing taxes, hiring employees, and opening business bank accounts.

You can apply for your LLC’s EIN through the Internal Revenue Service (IRS) website, by mail, or by fax. Or, if you’d rather have as little contact with that government agency as possible, we can get it for you. Our EIN service eliminates the hassle.

Register with Wisconsin agencies

Just as you register with the IRS, you’ll also need to register with the Wisconsin Department of Revenue and, depending on your circumstances, other state agencies. You can register with multiple state agencies with the Wisconsin One Stop Business Registration Portal.

Using this business portal will also allow you to get a seller’s permit so you can collect sales tax. You’re required to have this if you’re making retail sales, leases, or rentals of tangible personal property or taxable services in Wisconsin. The Department of Revenue website suggests applying for a seller’s permit at least three weeks before opening your business.

For Employers

If you plan to hire employees for your business, you’ll have to take some additional steps. New hires must be reported to the Wisconsin New Hire Reporting Center. You’ll also have to register for Unemployment Insurance Tax through the Wisconsin Department of Workforce Development.

You’ll need to withhold tax from your employees’ salaries by registering for Employee Withholding Tax through the Wisconsin Department of Revenue. Federal and state law also requires you to provide workers’ compensation insurance for your employees.

Can filing as an S corp lower my taxes?

The LLC business entity structure is known for its flexibility. That flexibility even extends to how you can choose to have your LLC taxed.

Unless you tell the IRS otherwise, your LLC will have pass-through taxation (see pass-through taxation definition). This appeals to most owners of LLCs because it avoids “double taxation,” in which a corporation pays taxes at both the business level and again when the income is distributed to the individual owners. But some LLCs opt to be taxed as a C corporation or an S corporation because, in their case, it works to their advantage.

Being taxed as a C corporation does mean you get double taxation, but, for certain LLCs, the advantages can sometimes outweigh the disadvantages. One benefit is that C corporations have the widest range of tax deductions, which could be an advantage for some larger, more profitable LLCs. For example, some employee benefits can be written off as a business expense.

S corp is short for “Subchapter S Corporation.” It’s a tax status geared toward a small business. Having your LLC taxed as an S corp has pass-through taxation like a standard LLC, but there’s another potential advantage for some LLCs: It could reduce your self-employment taxes. 

Self-employment taxes are the portion of your taxes that pay for Social Security and Medicare. In a typical LLC, you would pay these on all of your profits.

But filing as an S corp allows you to be an “employee-owner” and split your income into two sources, your salary and your share of the company’s profits. That way, you pay employment taxes on your salary but not self-employment taxes on your profits. (You’ll still pay the other applicable taxes on your LLC profits, of course.)

One drawback is that the Internal Revenue Service scrutinizes S corps more closely. They want to make sure you’re paying yourself a “reasonable” salary so that you’re still contributing to Social Security and Medicare. More scrutiny means you’re more likely to get audited. S corps also have more restrictions for qualifying.

While it’s possible that one of the above options could work better for your LLC, remember that business taxes are very complex and specific to your situation. That’s why you truly need to consult a tax professional to see which taxing method works best for your Wisconsin business.

If you decide to form your LLC with an S corp status, our S corp service can help you do that.

Step 6: File a beneficial ownership information report for your LLC

Note: As of December 3, 2024, a federal court temporarily paused enforcement of the Corporate Transparency Act, which requires businesses to report their beneficial ownership information to FinCEN. Although not mandatory, FinCEN is still accepting beneficial ownership filings. You can learn more about the current status of the beneficial ownership information (BOI) report on our BOI Report Requirements Timeline.

Your new LLC has a new requirement to fill as of 2024: filing a beneficial ownership information report, or BOI report. The Corporate Transparency Act introduced this requirement, aiming to help reduce financial crimes by making it more difficult for companies to hide illicit activities with shell corporations. The BOI report accomplishes this by requiring businesses to disclose information about their beneficial owners. 

Under the terms of the act, a beneficial owner is anyone who exerts significant control over the LLC, gets substantial economic benefit from the business assets, or holds 25% or more of the LLC’s ownership interest. When you file your BOI report, you’ll be asked to provide the name, address, and identifying documents of each beneficial owner your LLC has. 

You can file your BOI report online or by PDF upload to the website of the Financial Crimes Enforcement Network, or FinCEN. It’s free to file, and you only have to file at the federal level. Failing to file can have severe penalties, so be sure to file on time. LLCs created before 2024 have until January 1, 2025, to file, while LLCs formed during 2024 will have up to 90 days after Wisconsin approves their Articles of Organization. Any LLCs formed in 2025 and beyond will have just 30 days to file.

Find more information about this process on FinCEN’s website. And if you need help, our BOI report filing service can make this step easy.

The Cost of Forming an LLC in Wisconsin

There are quite a few different expenses you’ll need to budget for when you start a business. Every business will have slightly different startup costs, but here are some of the most common ones you can expect: 

  • Filing Fee for Articles of Organization: $130 for online filing, $170 for paper filing
  • Business Name Reservation: $15 for 120 days of reservation
  • Registered Agent Service Cost: $100-$300 annually
  • Annual Report Filing Fee: $25, plus fees if filed late
  • Legal, accounting, and professional services: vary

Next Steps for Your Wisconsin Business

After successfully forming your LLC in Wisconsin, taking the right next steps is crucial for your business’s legal compliance and operational success. Here are some of the most essential steps you should cover.

Get business licenses and permits

Different types of businesses in Wisconsin require various licenses and permits. While Wisconsin doesn’t have a general business license, it’s common for an LLC to need at least one license or permit. Research and obtain the relevant ones based on your business activity and location to ensure compliance with state and local regulations.

If this legwork sounds overwhelming, our business license report can help. 

Open a business bank account

Once you’ve secured an EIN, you’ll be able to open a business bank account, apply for a business credit card, and hire employees.

Having separate accounts for your business and your personal banking is critical for sorting out your finances at tax time and helps you keep personal and business transactions separate. Commingling funds not only makes your taxes more difficult, but it could also be used against you if someone takes you to court to challenge whether you and your LLC are truly separate entities (that is, they want to sue you not just for your business assets, but also your personal assets).

We offer a discounted bank account for your new business. This allows for unlimited transactions, online banking, a debit card, and more. When you want to authorize others in your business to use the account, we offer a banking resolution template to simplify the process.

For more help managing your new business’s finances, try Money Pro. It can help you create invoices, receive payments, transfer money, and manage clients all in one place.

Establish an accounting system

Implementing an effective accounting system is essential for tracking income and expenses and preparing for taxes. Whether you choose software solutions or professional services, a robust system will help you make informed financial decisions. Our Money app can be a great place to start. 

Stay informed about ongoing legal and tax requirements

In this guide, we’ve covered the current essential steps to start a Wisconsin LLC. But these regulations are subject to change at any time. So are business taxes. As a result, it’s essential to regularly update yourself on the legal and tax obligations specific to LLCs in Wisconsin. This includes filing annual reports and staying compliant with state and federal tax laws.

It can also be helpful to consult with a tax professional or business attorney to learn about any relevant changes.

Pros and Cons of Forming an LLC in Wisconsin

Before you form a Wisconsin LLC, it’s crucial to evaluate the pros and cons. You might determine that it’s the perfect business entity type for you, or you might decide to go a different direction. 

Advantages of an LLC in Wisconsin

Forming an LLC in Wisconsin offers several benefits, including limited liability protection, which usually shields personal assets from business debts and liabilities. This structure also provides tax flexibility, as LLCs can choose how they are taxed, potentially leading to tax benefits. Wisconsin LLCs also enjoy operational simplicity and flexibility, with fewer formalities and paperwork compared to corporations.

Disadvantages of an LLC in Wisconsin

On the downside, forming an LLC in Wisconsin can involve some complexities and costs. There are also ongoing state requirements, such as annual reports and fees, that require attention and resources. Additionally, raising capital can be more challenging for LLCs compared to corporations, as they cannot issue stock. Lastly, the limited liability protection can be undermined if the business fails to maintain proper formalities, such as having a registered agent and maintaining a separate bank account. Read more on LLC definition.

Types of LLCs in Wisconsin

When forming an LLC in Wisconsin, it’s important to understand the different types of LLCs you can establish, each serving various business needs and structures. Here’s a breakdown of the main types of LLCs available in Wisconsin:

  • Single-Member LLCs: As the name suggests, a single-member LLC is owned and operated by only one person. This type of LLC is ideal for individual entrepreneurs who want to run a business as a sole proprietor but with the added benefit of limited liability protection. In Wisconsin, single-member LLCs are treated like sole proprietorships for tax purposes unless they elect to be taxed as a corporation.
  • Multi-Member LLCs: Multi-member LLCs are owned by two or more individuals or entities. These are suitable for businesses with multiple owners seeking to benefit from limited liability protection while enjoying the flexibility of a partnership in managing the business. Multi-member LLCs are typically treated as partnerships for tax purposes unless they choose to be taxed as a corporation.
  • Domestic LLCs: A domestic LLC refers to an LLC that is formed and operates within Wisconsin. To establish a domestic LLC, you need to file Articles of Organization with the Wisconsin Department of Financial Institutions and comply with state-specific regulations.
  • Foreign LLCs: A foreign LLC is an LLC that was formed in another state but is registered to do business in Wisconsin. If you have an LLC in another state and wish to expand your business to Wisconsin, you need to register it as a foreign LLC by filing an LLC Foreign Registration Statement with the state.
  • Member-Managed vs. Manager-Managed LLCs: This distinction refers to the management structure. In a member-managed LLC, all members (owners) actively participate in running the business. In contrast, a manager-managed LLC appoints one or more managers (who can be members but don’t have to be) to handle the business operations, which can be beneficial for members who wish to be passive investors.

Related posts:

We can help

If you follow all the steps above, you should be the proud owner of a new LLC! But there’s still more to know than just how to create an LLC in Wisconsin. You may need to know about things like hiring employees, getting business licenses and permits, getting additional financing if you need it, how to make changes in your business, and how to stay in compliance with the government.

We offer our many formation services beyond just helping you form your LLC. Our business experts can also give you long-term support and business tools to help run and grow your company. 

So, if the paperwork of starting a business leaves you as cold as a Wisconsin winter, let us help. Let us take care of the LLC formation process, compliance, and more. That way, you can get back to running your dream business, whether it’s a Christmas tree farm in Burlington or a cream puff stand in Wausau.

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Starting an LLC in Wisconsin FAQs

  • Although the State of Wisconsin doesn’t require a general state business license to operate, some local counties or municipalities may. Check for any locally required general business licenses in the particular locations in which you plan to operate.

    As we mentioned earlier, your business will need a seller’s permit from the Wisconsin Department of Revenue if you’re making retail sales, leases, or rentals of tangible personal property or taxable services. This allows you to collect and remit sales tax to the state.

    Your business could need a variety of other Wisconsin licenses and permits depending on things like your location, your industry, whether you offer professional services, the types of items you sell, etc. Determining which business licenses and/or permits your LLC needs requires some research because licensing can be industry-specific and happen at the federal, state, and/or local levels.

    If you don’t have the time or inclination to do all this research, or if you just want peace of mind knowing that your business has all the licenses and permits it’s legally required to have, our business license report service can do the work for you.

  • The state fees for forming a Wisconsin LLC can range from $130 to $185, depending on factors such as your method of filing and whether you choose to reserve your business name. Note that fees change over time, so check the Department of Financial Institutions website for the most recent fee schedule.

  • LLCs aren’t the only type of business you can form in Wisconsin. However, about 90% of our customers choose the LLC business structure over all other types. Many see LLCs as the best of both worlds, having the advantages of both corporations and sole proprietorships.

    Here are some of the benefits of forming a Wisconsin limited liability company:

    • Personal asset protection: Your personal liability is usually separate from your business liability and debts.
    • Tax incentives: With an LLC, you’ll only pay personal income taxes on the profits rather than both personal and corporate income taxes. In Wisconsin, in particular, you can take advantage of the programs like the Enterprise Zone Tax Credit.
    • Flexible management: You’re not required to have a board of directors or annual meetings as you would in a corporation.
    • Less reporting: Compared to corporations, LLCs have fewer required meetings and reports.

    For a more in-depth look at why an LLC might be a better option for you, see our breakdown of an LLC.

  • The default tax status for an LLC is “pass-through taxation definition,” meaning that the business itself typically doesn’t pay federal income tax on its profits. Instead, the responsibility to pay income taxes falls only on the individual business owner or owners. In a typical corporation, profits are taxed at both the business level and the individual owners’ level. 

    An LLC with only one member doesn’t have to file a separate federal return for the company. The member reports the LLC income on their personal income tax return (Form 1040). But LLCs with more than one member are treated like a general partnership. They must file a separate information federal return for the LLC, Form 1065. Then each LLC member reports their share of the profits on Schedule K-1 and attaches it to their own personal federal tax return.

    Even though an LLC is taxed as a sole proprietorship or general partnership by default, members also have the option to tax the business as a corporation. Sometimes, members choose to classify their businesses as an S corporation or a C corporation, which can be advantageous in certain cases.

    Some LLCs elect to be taxed as S corporations because it can save the members money on self-employment taxes. S corporations also have pass-through taxation like a typical LLC. You can learn more on our “What Is an S Corp?” page.

    In other cases, members may be willing to accept a double taxation burden in exchange for the other possible benefits of being taxed as a C corporation. For example, C corporations also have the widest range of possible tax deductions.

    You still have other federal taxes to keep in mind. For example, you’ll likely need to pay self-employment taxes on your portion of the LLC’s profits. These are the taxes that go toward Social Security and Medicare. Fortunately, an LLC member can deduct half of the self-employment taxes paid as a business expense.

    Wisconsin Business Taxes

    If you have your LLC taxed as a pass-through entity for federal income tax, Wisconsin will tax you in the same manner for state income tax. However, if you choose to be taxed as a corporation, your LLC will have to pay any applicable Wisconsin corporate taxes.

    If your LLC has gross receipts in excess of $4,000,000 (hey, it could happen), you’ll need to pay Wisconsin’s economic development surcharge (EDS). The EDS rate is the greater of $25 or 3% of gross tax liability (this is different from gross receipts). 

    This isn’t a comprehensive list of all the taxes you may owe to the state of Wisconsin. Check the Wisconsin Department of Revenue website for more information on all your state tax obligations.

    Local Taxes

    Aside from federal and state taxes, you may also owe taxes to your county, municipalities, and other tax districts. You’ll need to check with your local tax authorities to make sure you’re paying everything you owe.

    In addition to the 5% state sales tax, many counties in Wisconsin tack on a 0.5% county sales tax. If you do business in one of those counties, you’ll be responsible for collecting that local sales tax.

    One article can’t give you a detailed look at the entire tax code or tell you what’s best for your specific company. We strongly recommend consulting a tax professional about your specific business’s circumstances. They can keep you out of trouble with tax collectors and potentially find tax savings you weren’t aware of.

  • No, you don’t need to file the operating agreement with the Wisconsin Department of Financial Institutions or any other agency. The operating agreement is mostly an internal document for the LLC. Some states legally require LLCs to have an operating agreement, but not Wisconsin.

  • That will depend on your individual circumstances and goals. Most LLCs elect pass-through taxation, where the LLC’s members are only taxed on their earnings at the individual level without first being taxed at the business level.

    If you choose to be taxed as a What is a C corporation? (the default form of corporation), you’ll be taxed twice on your profits — once at the entity level and then again at the individual level when you file your personal tax returns. Despite this double taxation, certain LLCs may benefit from this tax structure, as it has the most possible deductions.

    Being taxed as an S corporation means you’ll have pass-through taxation like a sole proprietorship, but it also allows members to earn money from the business both from its profits and by being paid a salary. In some instances, this could save the members on self-employment taxes (the taxes earmarked for Social Security and Medicare) because they wouldn’t pay them on their share of the LLC’s profits. Instead, they’d pay Social Security and Medicare taxes only for their salary.

    This is just a brief and simple overview. A qualified accountant should be able to advise you as to which tax arrangement would most benefit your LLC.

  • A Series LLC is a group of LLCs operating under one “parent” entity. Usually, the intent is to protect the “child” LLCs from the liability of the others. Wisconsin allows a watered-down form of a Series LLC, but it does not specifically provide for a liability shield between the different series.

    If you’re considering a series LLC, consult a business attorney for guidance. At this time, ZenBusiness doesn’t do Series LLC formations.

  • Formally, there’s no renewal requirement in the state of Wisconsin for LLCs or any other business entities, whether they’re sole proprietorships or corporations. However, all LLCs are required to file an annual report with the Wisconsin Department of Financial Institutions.

    The annual report is largely intended to keep the state updated on the basic information about your LLC. The state charges a small filing fee when you submit the report. Failing to file the annual report could cause the state to dissolve your LLC, leaving you without liability protection. You can read more about it on our Wisconsin annual report page.

    We have an annual report service that can help you with this paperwork every year.

  • First, the LLC members need to consult the operating agreement and follow all the rules they’ve established for dissolving the LLC. For the rest of the steps, please refer to our Wisconsin business dissolution guide.

  • Before you begin using your foreign LLC to conduct business in Wisconsin, it must be authorized by the state. This requires filing for and obtaining a Certificate of Authority, paying a filing fee, and following all the procedures for a foreign LLC in Wisconsin.

  • Currently, Wisconsin doesn’t offer the PLLC structure. In states that do offer the structure, licensed professionals like doctors and attorneys can use the PLLC structure to get liability protection while complying with licensing requirements. But it’s not an option in Wisconsin.

    Wisconsin professionals can form a regular LLC instead, or a professional corporation is another popular choice. Other options include limited liability partnerships, general partnerships, and even sole proprietorships. If you’re not sure which structure would be most advantageous for your business, it’s best to chat with a Wisconsin business attorney for customized guidance.

  • A registered agent is a person or business entity that receives legal documents on behalf of the LLC, while a business address is the physical location of the business.

  • Yes, if you’re running your business out of your home, you can list your home address as your business address. Be aware that this will become public record when you form your LLC.

  • A registered agent receives legal documents and notifications on behalf of the LLC in Wisconsin and relays them to the business owners.

  • Processing is usually immediate when you file online, but processing by mail takes about five business days, plus whatever time is spent in the mail. If filing by mail, you can pay an extra fee to the Department of Financial Institutions for expedited service to have it processed by the end of the following business day.

  • As of this writing, the annual report filing fee in Wisconsin is $25. If you file by paper, there’s an additional $15 fee.

  • Yes, you can change your business address in Wisconsin after formation by filing an Articles of Amendment with the state.

  • The cost of the ZenBusiness registered agent service in Wisconsin is $199 per year.

  • No, Wisconsin requires a physical address for business registration.

  • No, a registered agent is required by law in Wisconsin. You must appoint one before submitting your LLC paperwork.

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

ZenBusiness is a financial technology company and is not a bank. Banking services provided by Thread Bank, Member FDIC. The ZenBusiness Visa Debit Card is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used anywhere Visa debit cards are accepted. FDIC insurance is available for funds on deposit through Thread Bank, Member FDIC.

*Your deposits qualify for up to a maximum of $3,000,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program at https://thread.bank/sweep-disclosure/ and a list of program banks at https://thread.bank/program-banks/. Please contact customerservice@thread.bank with questions regarding the sweep program.

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Written by Team ZenBusiness

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