A record number of entrepreneurs started their own businesses in Wisconsin in the past year. While there are various business structure options, limited liability companies (LLCs) are among the most popular. If you’re trying to learn how to start an LLC in Wisconsin, this article will provide all the information you need. Read on to get all the facts and forms you need to create your LLC today.
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Before Establishing an LLC in Wisconsin
When preparing to form an LLC, you should take a few essential steps first. That way, the process of filing paperwork and paying fees can go as smoothly as possible.
Check Name Availability
Even if your company could register its name just fine in a different location, that doesn’t mean it will be the same in Wisconsin. In Wisconsin, your LLC’s name must be distinguishable from the names of other business entities in the state. It is always a good idea to do a quick business name search through the state website.
Once you confirm your name is available, you can fill out a name reservation application that will hold your LLC business name for up to 120 days; the filing fee is $15 and nonrefundable.
Once you’ve chosen a name, it’s a good idea to go ahead and register a web domain. You can also set up the social media accounts you plan to use to market yourself. While a web domain and social media aren’t necessary to form an LLC, setting them up now will help you secure the names you want and ensure consistent branding for your business.
Hire a Registered Agent
When you establish your LLC, you need someone to act as a registered agent, accepting official documents on the business’s behalf. Provided you’re a Wisconsin resident with a business office address in the state and are at least 18, you or another member (owner) can act as the registered agent. Some may prefer this as it can be cost-effective.
Otherwise, you might pay between $50 and $300 for an agent. Forbes Advisor has compiled a list of the best registered agent services so that you can compare options.
Once you take these preliminary steps, it’s easier to move forward with setting up your LLC in Wisconsin.
Register Your Wisconsin LLC
You are required to file your LLC paperwork with the Department of Financial Institutions. You can choose to complete the process online or submit documents by mail or in person. For in-person or mail filings, download and complete your Articles of Organization or Form 502. Foreign or out-of-state business entities must instead submit a Certificate of Registration (Form 521). Please note, expedited service when submitting forms is $25.
Submitting physical Articles of Organization paperwork costs $170; however, completing the process online costs $130. Foreign entities pay $100 to register their LLC within Wisconsin.
After You Form Your Wisconsin LLC
Successfully registering your LLC is just the beginning, as there are other steps to take to keep your business in good standing and provide it with a solid foundation moving forward.
Create an Operating Agreement
Operating agreements are informative documents that lay out precisely how you intend to run your LLC. For instance, an operating agreement details how the business runs and explains each member’s financial contributions and duties. Though not required by law, you should create an operating agreement. It will help avoid confusion or misunderstandings about member roles and provide your business with a sense of legitimacy and sincere purpose.
Get an Employer Identification Number (EIN)
Per federal law, most LLC owners must obtain an EIN, as it helps the IRS keep track of your tax filings. Single-member LLCs with no employees have the option of using the owner’s Social Security number instead, but all other LLCs must have an EIN. An EIN is nine digits long and is sometimes called a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN). You can get your EIN at the IRS website.
Annual Domestic and Foreign LLC Filings
Both in- and out-of-state LLCs must file yearly reports with the Wisconsin Department of Financial Institutions, or DFI. Each year, the Department informs businesses when filings are due by sending forms to the address of your registered agent. Instead of physically filing, you can complete the process online. The annual report fee is $25. Foreign LLCs pay $80. Your LLC may also have other annual costs, for example, you may pay a yearly fee if you hire a business to act as your registered agent.
Correcting Filing Mistakes
If you complete your LLC formation only to realize you made an error, immediately submit Form 53, the Articles of Correction. You must use black ink to complete the document and include a $40 check, payable to the DFI.
Featured Partners
1
ZenBusiness
$0 + State Fees
Varies By State & Package
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LegalZoom
$0 + State Fees
Varies By State & Package
3
Northwest Registered Agent
$39 + State Fees
Varies By State & Package
Dissolving Your Wisconsin LLC
If you decide one day that you must dissolve your LLC, you can do so by submitting Form 510 or Articles of Dissolution. The fee is $20, and the expedition costs an additional $25.
If there are other questions you need answers to regarding your Wisconsin LLC or the process, you should reach out to the Department of Financial Institutions directly. You can call 608-261-9555 or email DFICorporations@dfi.wisconsin.gov
Related: Small Business Grants in Wisconsin
LLC State Guides
Frequently Asked Questions
What is an LLC?
An LLC is a form of legal entity that is owned and operated as a business. It provides owners with a level of liability protection similar to a corporation but with more flexibility in management and taxation.
How much does it cost to form an LLC in Wisconsin?
Forming a domestic LLC in Wisconsin costs $170 when submitting physical paperwork and $130 if completed online. It costs $100 to register an out-of-state LLC in Wisconsin.
Can I act as my own registered agent?
Yes, if you’re a Wisconsin resident who’s at least 18 years old. You must also have a registered office in Wisconsin. The registered office is the registered agent’s place of business. An LLC cannot act as its own registered agent.
What kind of tax flexibility does an LLC provide?
LLCs can be taxed as sole proprietorships, partnerships, C corporations (C-corps) or S corporations (S-corps). This choice allows members of an LLC to minimize their tax burden.
Is it possible to set up an LLC for free?
While the cost to register an LLC varies by state, there is a fee to register in every state. So, while there are some companies that advertise “free” LLC formation, what this means is that the company will fill out the LLC paperwork for you for free. But again, you will still be responsible for the state’s filing fee.
What are the different types of LLCs to set up?
When determining how to start an LLC, there are several types of LLCs to choose from. Knowing the LLC structures available is essential for selecting a business model that most closely aligns with the nature of your company and how you intend for it to operate. These LLC structures include:
- Single-member LLC: This LLC is owned and operated by a single person. While similar to a sole proprietorship, this LLC provides additional tax benefits and liability shielding.
- Multimember LLC: Standard LLCs with more than one member, often divided into manager-managed or member-managed entities.
- L3C: These entities, also known as “low-profit liability companies,” act as a bridge between nonprofit LLCs and for-profit LLCs where the business cause remains the primary focus rather than earnings.
- Series LLC: Series LLCs are tiered business structures where the topmost LLC owns a series of lower-tiered LLCs through limitless segregation. Each LLC in the series operates mostly independently of one another; their assets are also primarily separated.
- PLLC: A specialized LLC, this business formation type is only available to certain licensed professionals.
- Restricted LLC: Restricted LLCs are not taxed during the first 10 years of formation. Likewise, they cannot make distributions to members. It must be stated in the articles of organization that the LLC will be restricted.
