LLC Cost in Wisconsin | How Much Does It Cost to Start an LLC

LLC Costs in Wisconsin

Forming a Limited Liability Company (LLC) in Wisconsin is a popular choice for entrepreneurs and small business owners who want to protect their personal assets and enjoy flexibility in their business operations. LLC formation costs vary from state to state, and it is essential to understand the costs involved in forming and maintaining an LLC in Wisconsin.

If you would like to know more about the Wisconsin LLC Cost, read the whole article until the end. Webinarcare Editorial Team will help you gain knowledge on how much an LLC Costs in Wisconsin. You must be guided by all the factors gathered in this article.

How to Start an LLC?

Before we dive into the LLC Cost in Wisconsin, you should know the step-by-step process of starting an LLC, including selecting a unique business name, appointing a Registered Agent, filing the necessary documents, and fulfilling any additional requirements, such as obtaining licenses or permits that are specific to your industry or location.

Here are the steps in starting an LLC in Wisconsin:

  • Step 1: Choose a Unique Business Name
    The first step in starting an LLC in Wisconsin is to select a unique business name for your company. The name should be distinguishable from any other registered businesses in the state. You can check the availability of your desired business name by searching the state’s business name database. Once you’ve found an available name, you may need to include “LLC” or “Limited Liability Company” at the end of the name to comply with state requirements.
  • Step 2: Appoint a Registered Agent
    A Registered Agent is someone who will receive official legal and tax documents on behalf of your LLC. The Registered Agent must have a physical address in Wisconsin and be available during normal business hours. You have the option to appoint yourself as the registered agent or hire a professional registered agent service.
  • Step 3: File the Articles of Organization
    To officially form your LLC, you need to file the Articles of Organization with the Wisconsin Secretary of State or the appropriate state agency. The Articles of Organization typically requires basic information about your LLC, such as its name, address, Registered Agent details, and the name and address of the LLC’s members or managers.
  • Step 4: Create an Operating Agreement
    Once your LLC is formed, it’s highly recommended to create an operating agreement in Wisconsin. Although not required by Wisconsin law, an operating agreement is a crucial internal document that outlines the ownership, management, and operating procedures of your LLC. It helps establish clear guidelines and expectations among members, and it can be especially useful in the event of disputes or disagreements in the future. The operating agreement can be customized to fit the specific needs and goals of your LLC.
  • Step 5: Obtain Required Licenses and Permits
    Depending on the nature of your business, you may need to obtain specific licenses or permits at the federal, state, or local level. Research the licensing requirements in Wisconsin and apply for business licenses in Wisconsin related to your industry or activities. Common examples include professional licenses, health or safety permits, and sales tax permits.
  • Step 6: File for an Employer Identification Number (EIN)
    An Employer Identification Number (EIN) is a unique nine-digit number issued by the Internal Revenue Service (IRS) that is used to identify your LLC for tax purposes. Even if you don’t have employees, obtaining an EIN is typically required if you plan to open a business bank account, hire contractors, or file certain tax forms. You can easily apply for an EIN in Wisconsin through the IRS website.
  • Step 7: Comply with Ongoing Requirements
    Once your LLC is established in Wisconsin, it’s important to stay in compliance with any ongoing requirements. This may include filing periodic reports, paying Annual Report fees, and renewing licenses or permits. Familiarize yourself with the specific obligations for maintaining your LLC’s good standing in Wisconsin.

Remember, starting an LLC in Wisconsin involves some specific steps and requirements that may differ from other states. It’s advisable to hire an LLC Services in Wisconsin that specializes in business formation to ensure that you follow all the necessary procedures accurately and efficiently. We reviewed the Best LLC Services for you to check out.

LLC Cost in Wisconsin

It is crucial to consider the costs associated with the formation and maintenance of your business. The costs of establishing and operating an LLC in Wisconsin can vary based on several factors, including the initial formation fees, ongoing compliance requirements, and optional expenses.

Initial LLC Costs

When starting a limited liability company (LLC), knowing the initial costs associated with forming and registering your new business entity is essential. Understanding and preparing for these expenses can help you budget effectively and set your Wisconsin business on a path to success. Some common initial costs associated with forming an LLC include Articles of Organization filing fees, Registered Agent fees, and additional services, such as business name reservation fees.

Articles of Organization Filing Fee

The first step in forming an LLC in Wisconsin is to file the Wisconsin Articles of Organization with the Wisconsin Secretary of State. This document officially creates the LLC and includes essential information about the business, such as its name, address, and Registered Agent.

This document includes essential information about your LLC, such as:

  • The name of your LLC
  • The address of your LLC’s principal office
  • The name and address of your Registered Agent
  • The purpose of your LLC (optional in some states)

You can typically file the Articles of Organization online, by mail, or in person. A filing fee is associated with this process, which costs around $130. You can also file by mailing it to Wisconsin Secretary of State, which is located at State of WI – Dept. of Financial Institutions, P.O. Box 93348, Milwaukee, WI 53293.

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Registered Agent Fee

An LLC in Wisconsin must designate a Registered Agent who will be responsible for receiving legal and government documents on behalf of the business. You can act as your own Registered Agent or appoint someone you know. Professional Registered Agent in Wisconsin typically charge an annual fee ranging from $50 – $150.

In Wisconsin, your Registered Agent must:

  • Be a resident of Wisconsin or a business entity authorized to do business in the state.
  • Have a physical address in Wisconsin (P.O. boxes are not acceptable)

Choosing a reliable and responsible Registered Agent is essential, as failure to receive and respond to legal documents can seriously affect your business.

We reviewed some of the Best Registered Agent Services in Wisconsin and provided features as an add-on with their packages for you to check out.

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Business Name Reservation Fee

If you have a specific business name in mind and want to ensure it is available when you are ready to file your Articles of Organization, you can reserve the business name with the Wisconsin Secretary of State.

In Wisconsin, your LLC name must:

  • Include the words “Limited Liability Company,” “LLC,” or “L.L.C.
  • Not contain any words or phrases that are prohibited by state law
  • Be distinguishable from the names of other businesses registered in the state

However, if you do not wish to file your LLC right away but want to hold the name that you have decided on, then you can reserve your LLC name for 120 days. You must file a name reservation application in the Wisconsin Secretary of State to keep the name.

The online name reservation fee is $15, while the mail name reservation fee is $15. You can register your business under a different legal name if your preferred name isn’t available. Once you have chosen a name, you can submit an application for a DBA (doing business as). If you have decided to file for a DBA, you can file it in two methods, by mail and in person. However, before filing Wisconsin DBA, you should know that you need to renew your DBA for up to ten years, which cost $15.

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Ongoing LLC Costs

After you know the initial costs of forming an LLC in Wisconsin, you should also know the ongoing costs once you have filed for an LLC. Here are the involved costs that you need to know.

Annual Report Filing Fee

To keep your LLC in good standing, you must file Annual Report with the Wisconsin Secretary of State. The Annual Report provides updated information about your LLC, such as changes in address, members, or Registered Agent.

In Wisconsin, the Annual Report fee costs $25 which can be paid every 1 year.

Franchise Tax or Annual LLC Tax

Some states require LLCs to pay an annual franchise or LLC tax, separate from the Annual Report filing fee. Franchise tax, or annual tax, is a fee imposed by Wisconsin on businesses, including LLCs and Wisconsin Corporations, for the privilege of operating within their jurisdiction. This tax is separate from income taxes and is usually based on factors such as the company’s net worth, assets, capital, or a fixed dollar amount, depending on the Wisconsin’s specific tax regulations.

Wisconsin LLC Taxes To Be Paid

The State of Wisconsin is one of those rarest states in the United States that does not levy any personal income tax on businesses. However, the business LLCs must file other taxes with the State authorities.

  • Sales Tax: A sales tax is a government-imposed tax on the sale of goods and services. It is generally added to the price of a product or service at the point of sale and paid by the consumer. The tax is collected by the retailer or service provider, who then remits the collected tax amount to the relevant government authority. In Wisconsin, the sales tax rate is 5.00%.
  • State Income Tax: Considering other taxes in Wisconsin, you should pay for the state income tax, with a rate of 7.90%.
  • LLC Federal Self-Employment Tax: Federal self-employment tax rates are the same across all states. Self-employment taxes are imposed on self-employed individuals or members of a Limited Liability Company (LLC) taxed as a sole proprietorship or partnership.
  • Property Tax: The property tax is fixed at 1.76% of industrial, commercial, residential, agricultural, and all other properties.

Business Licenses and Permits

Depending on the nature of your Wisconsin business and the location of your operations, you may need to obtain permits and business licenses in Wisconsin. The costs of these licenses and permits will vary based on your specific business and location. In Wisconsin, the business license ranges from $50 – $300. However, research the requirements for your LLC in Wisconsin and budget for these expenses accordingly.

Optional LLC Costs

Here are the optional costs you must consider if you will form an operating agreement or hire a professional service.

Operating Agreement

Although not required by law, it is highly recommended that LLCs create an operating agreement in Wisconsin. This document outlines the LLC’s ownership structure, management, and operating procedures. Hiring a business attorney to draft an operating agreement can cost anywhere from $500 to $2,000, or you can use online resources and templates to create one yourself.

Professional Services

You may hire professionals such as attorneys, accountants, or business consultants to help you establish and run your Wisconsin LLC. These services can provide valuable expertise and guidance but come at an additional cost. Consider the potential benefits and weigh them against the costs when hiring professional assistance.

You may check out the Best Business Attorney Services in Wisconsin that offer their professional services to form your business.

Can I Set Up an LLC For Free?

It’s impossible to set up an LLC entirely for free, as state filing fees and other costs are associated with establishing an LLC. However, you can save money by handling the formation process instead of hiring a professional service. Here are some steps to help you minimize the cost of setting up an LLC:

  • Choose your LLC’s name and check for availability in your state. This can generally be done through the Secretary of State’s website.
  • Prepare and file the Articles of Organization yourself. Wisconsin offer an online filing option or downloadable forms on their websites. By completing this process independently, you can avoid paying additional fees for a professional service.
  • Act as your own Registered Agent if permitted within Wisconsin. It allows the business owner to serve as the Registered Agent, saving you the cost of hiring a professional registered agent service.
  • Create your own Operating Agreement using online resources and templates. Although not required in every state, an Operating Agreement is highly recommended to outline your LLC’s ownership structure and management. By drafting this document yourself, you can save on legal fees.
  • Research and apply for any required licenses and permits on your own. Depending on your business type and location, you may need specific permits or licenses. These costs can vary, but handling the application process yourself can save you the expense of hiring a professional service.

While you can’t set up an LLC for free, taking a do-it-yourself approach and minimizing the use of professional services can help you save money during the formation process. However, handling these tasks requires time and effort, and there may be additional legal or financial risks if mistakes occur.

FAQs

What is the cost to form an LLC in Wisconsin?
The filing fee to form an LLC in Wisconsin is $130.
What is the annual report fee for an LLC in Wisconsin?
The annual report fee for an LLC in Wisconsin is $25.
Is there a fee for a Wisconsin LLC to change its name?
Yes, there is a fee of $50 to change the name of an LLC in Wisconsin.
What is the fee to dissolve an LLC in Wisconsin?
The fee to dissolve an LLC in Wisconsin is $10.
What is the fee to reinstate an LLC in Wisconsin?
The fee to reinstate an LLC in Wisconsin varies based on the amount of time lapsed, but can range from $25-$400.
How much does it cost to get a Wisconsin LLC operating agreement?
The cost to get a Wisconsin LLC operating agreement varies based on law firms or attorneys handling it, but on an average it costs around $350-$1000.
Is it expensive to maintain an LLC in Wisconsin?
No, Wisconsin has relatively low fees for maintaining an LLC compared to other states.
Can I form an LLC in Wisconsin without a registered agent?
No, every Wisconsin LLC is required to have a registered agent located in the state.
What is the cost to hire a registered agent in Wisconsin?
The cost to hire a registered agent in Wisconsin varies based on the service provider selected, but typically ranges from $50-$300 per year.
Do I have to pay sales tax on LLC formation fees in Wisconsin?
Yes, sales tax must be paid on LLC formation fees in Wisconsin.
Can I form an LLC in Wisconsin online?
Yes, you can form an LLC in Wisconsin online through the Department of Financial Institutions website.
What is the typical filing time for a Wisconsin LLC formation?
The typical filing time for a Wisconsin LLC formation is 1-2 business days.
Can I expedite my Wisconsin LLC formation filing?
Yes, you can expedite your Wisconsin LLC formation filing for an additional fee of $25-$50.
Do I need a business license for my Wisconsin LLC?
Maybe. Depending on what type of business your LLC is conducting, you may be required to obtain a business license in Wisconsin.
How much does a business license in Wisconsin cost?
The cost of a business license in Wisconsin varies based on the type of business and location.
Do I have to pay income tax on LLC profits in Wisconsin?
Yes, LLC profits are not taxed at the entity level and are instead passed through to the individual members of the LLC to report on their personal income tax returns.
Can an LLC elect to be taxed as a corporation in Wisconsin?
Yes, an LLC can elect to be taxed as a corporation in Wisconsin if it meets certain requirements.
How much does it cost to convert an LLC to a corporation in Wisconsin?
The cost to convert an LLC to a corporation in Wisconsin varies based on a number of factors such as legal fees and filing fees.
Do I need to file an annual report for my LLC in Wisconsin if the LLC has no activity?
Yes, every LLC in Wisconsin is required to file an annual report regardless of its activity level.
What happens if I fail to file an annual report for my Wisconsin LLC?
Your Wisconsin LLC will be administratively dissolved if you fail to file an annual report.
Can I waive the annual report requirement for my Wisconsin LLC?
No, the annual report requirement cannot be waived for any Wisconsin LLC.
Is there a penalty for late filing of an annual report for a Wisconsin LLC?
Yes, there is a $25 penalty for late filing of an annual report for a Wisconsin LLC.
Who can file an annual report for a Wisconsin LLC?
The LLC’s registered agent or a member of the LLC can file an annual report for a Wisconsin LLC.
Can a Wisconsin LLC have foreign members?
Yes, a Wisconsin LLC can have foreign members.
Are operating agreements required for Wisconsin LLCs?
No, operating agreements are not required for Wisconsin LLCs, but it’s highly recommended to have one.
Can a Wisconsin LLC be taxed as an S corporation?
Yes, a Wisconsin LLC can elect to be taxed as an S corporation.
Do Wisconsin LLCs need to have liability insurance?
No, Wisconsin LLCs are not required to have liability insurance but it’s always good to buy a liability insurance plan to minimize the risks of liability.
Can a Wisconsin LLC have only one member?
Yes, a Wisconsin LLC can have only one member.
What is an LLC, and can you form one in Wisconsin?
An LLC, or limited liability company, is a type of business organization structure that combines the flexibility of a partnership with the limited liability of a corporation. Yes, you can form an LLC in Wisconsin.
What are the benefits of forming an LLC in Wisconsin?
The benefits of forming an LLC in Wisconsin include limited liability for the owners, flexibility in management, and taxation benefits.
How do I form an LLC in Wisconsin?
To form an LLC in Wisconsin, you must file Articles of Organization with the Wisconsin Department of Financial Institutions and pay a filing fee.
How much does it cost to form an LLC in Wisconsin?
It costs $130 to file Articles of Organization in Wisconsin.
What is the processing time for filing Articles of Organization in Wisconsin?
The processing time for Articles of Organization in Wisconsin is usually 5-7 business days.
Do I need a Wisconsin resident agent for my LLC?
Yes, you must appoint a Wisconsin resident agent to receive legal documents on behalf of your LLC in Wisconsin.
Can I be my own resident agent for LLC in Wisconsin?
Yes, but it’s recommended that you hire a professional resident agent for your LLC in Wisconsin.
What are the annual requirements for LLC in Wisconsin?
The annual requirement for LLC in Wisconsin is to file an annual report with the Wisconsin Department of Financial Institutions and pay a filing fee.
What is the cost to file an annual report for LLC in Wisconsin?
The cost to file an annual report for LLC in Wisconsin is $25.
Are there any late fees for filing an annual report in Wisconsin?
Yes, there is a $10 late fee for filing an annual report in Wisconsin.
Can I dissolve my LLC in Wisconsin?
Yes, you can dissolve your LLC in Wisconsin by filing Articles of Dissolution.
How much does it cost to dissolve an LLC in Wisconsin?
It costs $20 to dissolve an LLC in Wisconsin.
Is there a franchise tax for LLC in Wisconsin?
Yes, there is an annual franchise tax on LLCs in Wisconsin.
How is the Wisconsin franchise tax calculated for LLCs?
The Wisconsin franchise tax for LLCs is calculated based on the LLC’s net income in Wisconsin.
When is the franchise tax for LLCs in Wisconsin due?
The franchise tax for LLCs in Wisconsin is due by the 15th day of the third month after the end of your LLC’s fiscal year.
What is the cost of the Wisconsin franchise tax for LLCs?
The cost of the Wisconsin franchise tax for LLCs is $80 minimum or 0.25% of your LLC’s net income in Wisconsin, whichever is greater.
Do I need to pay a state tax for my LLC in Wisconsin?
No, Wisconsin does not have a state tax on LLCs.
Do LLCs in Wisconsin need to pay sales tax?
Yes, LLCs in Wisconsin must pay sales tax if they are engaged in taxable sales.
What is the sales tax rate for LLCs in Wisconsin?
The sales tax rate for LLCs in Wisconsin is 5%.
Does Wisconsin require LLCs to file a state tax return?
LLCs in Wisconsin are not required to file a state income tax return.
Are LLCs in Wisconsin required to file a federal tax return?
Yes, LLCs in Wisconsin are required to file a federal tax return if they have elected to be taxed as a corporation, or if they have more than one member.
Can an LLC elect to be taxed as an S corporation in Wisconsin?
Yes, an LLC in Wisconsin can elect to be taxed as an S corporation for federal tax purposes.
Do members of LLCs in Wisconsin have personal liability for the company’s debts?
Generally, members of LLCs in Wisconsin have limited liability and are not personally liable for the company’s debts.
Can creditors go after the personal assets of LLC members in Wisconsin?
In most cases, creditors cannot go after the personal assets of LLC members in Wisconsin.
What happens if my Wisconsin LLC has debt it cannot pay?
If your Wisconsin LLC has debt it cannot pay, it may need to file for bankruptcy or dissolution.
Can non-US residents form an LLC in Wisconsin?
Yes, non-US residents can form an LLC in Wisconsin as long as they have a Wisconsin resident agent.
Who can be a member of an LLC in Wisconsin?
Anyone can be a member of an LLC in Wisconsin, including individuals, corporations, and other LLCs.
What is the annual financial report that LLCs must produce in Wisconsin?
LLCs in Wisconsin don’t require an annual financial report. However, they are required to file an annual report.
What is the additional cost to file a mechanical waiver in LLC in Wisconsin?
The additional cost to file a mechanical waiver for an LLC in Wisconsin is $500.

Also Read

How to Save Money While Starting Your Business LLC in Wisconsin

One of the first steps to saving money is to do thorough research. Before diving headfirst into starting your business, take the time to research and understand the market you are entering. This includes researching your competitors, understanding your target audience, and identifying any potential challenges you may face. By doing your homework upfront, you can avoid costly mistakes and make more informed decisions for your business.

Another way to save money is to bootstrap your business. Bootstrapping means funding your business with personal savings and revenue generated by the business, rather than seeking external funding from investors or loans. While bootstrapping may require more discipline and patience, it can ultimately lead to greater financial stability and autonomy for your business.

When it comes to setting up your business, consider opting for a virtual office rather than a traditional office space. A virtual office provides a professional business address and mail handling services without the overhead costs of leasing a physical office space. This can save you money on rent, utilities, and other office-related expenses, allowing you to invest those funds back into your business.

Additionally, consider utilizing online tools and resources to streamline your business operations. From project management platforms to accounting software, there are numerous digital tools available to help you manage your business more efficiently and cost-effectively. By leveraging technology, you can reduce manual processes, save time, and allocate resources more strategically.

Networking is another key strategy for saving money while starting your business. Building relationships with other entrepreneurs, industry professionals, and potential customers can lead to valuable partnerships, collaborations, and cost-saving opportunities. Networking events, industry conferences, and online networking platforms are all valuable resources for connecting with like-minded individuals and growing your business network.

Furthermore, consider outsourcing certain tasks to freelance professionals or specialized firms. Instead of hiring full-time employees for every aspect of your business, you can save money by outsourcing specific functions, such as web design, marketing, or bookkeeping. This approach allows you to access expertise on an as-needed basis, without the cost of hiring and maintaining a full-time staff.

As you embark on your journey of starting a business LLC in Wisconsin, keep in mind that saving money is not about cutting corners or sacrificing quality. It’s about being resourceful, strategic, and mindful of how you allocate your financial resources. By carefully planning, researching, and leveraging cost-saving strategies, you can set your business up for success while keeping your expenses in check.

Conclusion

Forming and maintaining an LLC in Wisconsin involves various costs, including initial filing fees, ongoing annual report fees, and taxes. Understanding and planning for these costs is essential when establishing your LLC. Additionally, consider any optional expenses, such as hiring professional services or drafting an operating agreement, to ensure the success and longevity of your LLC in Wisconsin.

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