Forming a Single-Member LLC in Wisconsin | A Guide For Business Owners

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Forming a Single-Member LLC in Wisconsin

If you would like to start an LLC in Wisconsin, also known as The Badger State, there are a few things that you should consider. In Wisconsin, putting up a single-member limited liability company (LLC) will benefit you and your business since it protects your assets, and maintain good standing. It also combines a corporation’s limited liability protection with a sole proprietorship’s simplicity and flexibility.

In this article, Webinarcare Editorial Team will walk you through the step-by-step process of forming a Single-Member LLC in Wisconsin and provide valuable tips to help you succeed in your entrepreneurial journey.

How to Form a Single-Member LLC in Wisconsin

Understanding Single-Member LLCs

A single-member LLC in Wisconsin is a business entity with only one owner, also known as a member. This business structure offers several advantages, including limited liability protection, pass-through taxation, and ease of management. In Wisconsin, single-member LLCs are subject to state-specific regulations and requirements, which may vary from other states. The formation process typically involves choosing a unique business name, registering with the Secretary of State, and completing other required steps to comply with Wisconsin laws and regulations.

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It is suggested that you speak with a legal professional before you begin setting up your single-member LLC. They’ll understand what’s best for you and your company. To safeguard your personal assets from business debts, you can always start an LLC for your business.

– WEBINARCARE EDITORIAL TEAM

How to Form a Single-Member LLC in Wisconsin

To form a single-member LLC for your business, you must follow the guidelines, including research and planning, registering your single-member LLC, establishing your business operations, and maintaining compliance with Wisconsin regulations.

Step 1: Research and Planning

Before you can form your single-member LLC in Wisconsin, conducting thorough research and creating a solid business plan is crucial. This stage involves the following steps:

Research State-Specific Requirements

Each state has its own regulations for maintaining and forming an LLC. To ensure you comply with Wisconsin law, familiarize yourself with the state’s LLC requirements, such as filing fees, Annual Report requirements, and ongoing compliance obligations.

Choose a Business Name

Selecting a name for your LLC is an essential part of the formation process. Your business name should be unique, memorable, and reflective of your products or services. There is a complete guide on Business Name Search in Wisconsin for you to have a proper LLC business name. 

In Wisconsin, your single-member 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

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. 

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). In this manner, you can choose any name you desire for your business. A DBA allows a company to operate under the name of the person or entity who owns it. If you have decided to file for a DBA in Wisconsin, you can file it in two methods, by mail and in person.

However, before filing a DBA, you should know that you need to renew your DBA for up to ten years, which costs around $15. You can check the availability of your desired business name by searching the Wisconsin Department of Financial Institutions‘s website.

Recommended: Embark on your entrepreneurial journey confidently and affordably with LegalZoom’s DBA service, the beacon that guides businesses to credible branding and comprehensive compliance. Discover how effortless success can truly be!

– LegalZoom – ($99 + Filling Fees)

Determine Licensing and Permit Requirements

Depending on the nature of your business, you may need to obtain certain licenses and permits to operate legally. Research the specific requirements for your industry in Wisconsin by consulting the state’s business licensing portal, contacting your local Chamber of Commerce, or seeking advice from Wisconsin Business Attorney.

Create a Business Plan

A well-crafted business plan will guide your single-member LLC’s growth and success. Your business plan for your Wisconsin single-member LLC should cover key aspects such as:

  • Executive summary
  • Company Description
  • Market Analysis
  • Competitive Analysis
  • Products and Services
  • Marketing and Sales Strategy
  • Organizational Structure
  • Financial Projections

Step 2: Registering Your Single-Member LLC

Once you have completed the initial research and planning, it’s time to register your single-member LLC with the Wisconsin Secretary of State. Here are the steps involved:

File the Articles of Organization

To officially form your single-member LLC in Wisconsin, you must file the Wisconsin Articles of Organization with the Wisconsin Secretary of State. 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.

Appoint a Registered Agent

A Registered Agent is a person or entity responsible for receiving legal documents and official notices on behalf of your LLC. 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)

It’s essential to choose a reliable and responsible Wisconsin Registered Agent, as failure to receive and respond to legal documents can have serious consequences for your business. 

You can serve as your own Registered Agent or appoint a friend, family member, or a professional Wisconsin Registered Agent Services.

Obtain an Employer Identification Number (EIN)

An EIN, also known as a Federal Tax Identification Number, is used by the Internal Revenue Service (IRS) to identify your business for tax purposes. You’ll need an EIN to open a business bank account, file taxes, and hire employees (if necessary). 

The application of an EIN in Wisconsin can be through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

In obtaining Wisconsin EIN for your single-member LLC, you should be aware to ensure that your LLC is eligible for an EIN. You need an EIN if you have employees, operate as a corporation or partnership, or meet other specific IRS criteria. Before applying, gather the required information, including your LLC’s name, mailing address, and the responsible party’s Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Also, you can apply for an EIN through various methods, including online, by fax, mail, or telephone (for international applicants).

Recommended: Professional services have the EIN included in their LLC formation package. We recommend using –

LegalZoom – ($0 + State Fee for LLC formation)

Register Your Single-Member LLC

If your single-member LLC will collect sales tax, have employees, or be subject to certain state taxes, you may need to register with the Wisconsin Department of Financial Institutions. Check the department’s website or consult a tax professional for specific registration requirements.

Step 3: Establishing Your Business Operations

With your single-member LLC officially registered in Wisconsin, you can now focus on setting up the operational aspects of your business.

Open a Business Bank Account

Opening a separate bank account for your Wisconsin single-member LLC is essential for maintaining a clear separation between your personal and business finances. This separation helps preserve the limited liability protection offered by the LLC structure. You can check out the Best Banks in Wisconsin, which offer the best fees, services, and convenience for your business needs.

Set Up an Accounting System

Effective financial management is crucial for the success of your single-member LLC. Establish a reliable accounting system to track income, expenses, and tax obligations. You can manage your finances using spreadsheets and accounting software by becoming a CPA in Wisconsin.

Create an Operating Agreement

Although not required by Wisconsin law, it’s highly recommended that you create an operating agreement for your single-member LLC. This document outlines your LLC’s management structure, decision-making process, and ownership rights. A clear Wisconsin Operating Agreement can prevent disputes and provide a framework for managing your business.

The operating agreement includes information like-

  • About Business
  • Members and management
  • Capital contribution
  • Profit Distribution
  • Change of membership
  • Dissolution

Step 4: Maintaining Compliance with Wisconsin Regulations

Once your single-member LLC is up and running, staying informed and compliant with state regulations is essential. Here are some key ongoing requirements for LLCs in Wisconsin:

File Annual Report

LLCs must file Annual Report with the Wisconsin Secretary of State. This report typically includes updated information about your LLC, such as its business address, Registered Agent, and member information. 

In Wisconsin, the annual report fee costs around $25 which can be paid every 1 year.

Pay Required Taxes and Fees

As a single-member LLC, your business income will be subject to pass-through taxation, meaning profits and losses will be reported on your personal tax return. However, you may still be responsible for other state taxes, such as sales tax, payroll tax, or franchise tax which you can pay in Wisconsin Department of Revenue.

In terms of franchise tax for your single-member LLC in Wisconsin, there is No franchise tax. Consult a tax professional to ensure you meet all your tax obligations.

Maintain Accurate and Up-to-Date Records

Keeping detailed records of your single-member LLC’s transactions, meetings, and decisions is crucial for maintaining compliance with state regulations and protecting your limited liability status. Regularly review and update your records to accurately reflect your business activities.

Cost of Forming a Single-Member LLC in Wisconsin

Even if you have a business name and structure in mind, consider whether you can afford the costs of forming an LLC in Wisconsin. Articles of Organization costs around $130. The initial filing fee is $170 (by mail and $130 online), and the annual fee is $25. 

If you forget to pay the annual fee for your Wisconsin LLC, you will have a penalty of $40. However, you can check the Wisconsin LLC Cost for additional information. 

Advantages of Starting a Single-Member LLC

Even though some people decide on what to do with their businesses, some choose to put it in their own individual name, while others still choose to set it up via single-member LLC in Wisconsin. These advantages will help establish a single-member LLC in Wisconsin. 

  • Limited Liability Protection: One of the primary advantages of a single-member LLC is the limited liability protection it provides to its owner. This means that the owner’s personal assets, such as their home and personal savings, are protected from the debts and liabilities of the business. In the event of a lawsuit or financial loss, only the assets owned by the LLC are at risk.
  • Pass-Through Taxation: Single-member LLCs enjoy pass-through taxation, meaning that the business profits and losses are reported on the owner’s tax return. This avoids the double taxation that traditional corporations face, where the company and the owner are taxed separately on the same income.
  • Simplified Management: Single-member LLCs have a simplified management structure compared to other business structures. The owner has full control over the business’s decision-making process and day-to-day operations without needing a board of directors or complex corporate formalities.
  • Flexibility in Business Operations: Single-member LLCs offer flexibility in terms of operational and management structures. The owner can operate the business as a sole proprietor while benefiting from an LLC’s limited liability protection.
  • Credibility: Forming a single-member LLC can enhance the credibility of your business in the eyes of potential customers, suppliers, and financial institutions. An LLC designation can make your business more professional and established than a sole proprietorship.

FAQs

Is it possible to form a single-member LLC in Wisconsin?
Yes, it is possible to form a single-member LLC in Wisconsin.
Do I need to have a physical office in Wisconsin to form a single-member LLC there?
No, you do not need to have a physical office in Wisconsin to form a single-member LLC there.
What are the requirements to form a single-member LLC in Wisconsin?
To form a single-member LLC in Wisconsin, you need to file articles of organization with the Department of Financial Institutions.
How much does it cost to form a single-member LLC in Wisconsin?
It costs $130 to file articles of organization for a single-member LLC in Wisconsin.
How long does it take to form a single-member LLC in Wisconsin?
It takes around 10-15 business days to form a single-member LLC in Wisconsin, assuming there are no issues with the application.
Do I need to register my single-member LLC in Wisconsin?
Yes, you need to register your single-member LLC in Wisconsin in order to do business there.
Can foreigners form a single-member LLC in Wisconsin?
Yes, foreigners can form a single-member LLC in Wisconsin.
How many DBAs can a single-member LLC have in Wisconsin?
A single-member LLC in Wisconsin can have as many DBAs as it wants.
Are there annual report requirements for single-member LLCs in Wisconsin?
Yes, single-member LLCs in Wisconsin need to file an annual report with the Department of Financial Institutions.
Do I need to provide a registered agent for my single-member LLC in Wisconsin?
Yes, every single-member LLC in Wisconsin is required to have a registered agent.
Can I be the registered agent for my single-member LLC in Wisconsin?
Yes, you can be the registered agent for your single-member LLC in Wisconsin.
Do I need an operating agreement for my single-member LLC in Wisconsin?
No, an operating agreement for a single-member LLC in Wisconsin is not required, but it is recommended to have one.
Can I change my single-member LLC to a multi-member LLC in Wisconsin?
Yes, you can change your single-member LLC to a multi-member LLC in Wisconsin by adding more members to the LLC.
Can I use a PO box as my business address for my single-member LLC in Wisconsin?
No, you cannot use a PO box as your business address for your single-member LLC in Wisconsin.
Are single-member LLCs required to pay annual fees in Wisconsin?
Yes, single-member LLCs in Wisconsin are required to pay an annual fee to the Department of Financial Institutions.
Can I form a single-member LLC in Wisconsin for tax purposes only?
No, Wisconsin does not recognize single-member LLCs formed for tax purposes only.
Can a single-member LLC in Wisconsin be treated as an S corporation for tax purposes?
Yes, a single-member LLC in Wisconsin can elect to be treated as an S corporation for tax purposes.
Do single-member LLCs in Wisconsin need to have an employer identification number (EIN)?
Single-member LLCs in Wisconsin are not required to have an EIN, but it is recommended to have one.
Do I need to provide financial documents to form a single-member LLC in Wisconsin?
No, there is no requirement to provide financial documents to form a single-member LLC in Wisconsin.
Are single-member LLCs in Wisconsin required to have a separate bank account?
It is not required by law, but it is a good practice for single-member LLCs in Wisconsin to have a separate bank account.
Are single-member LLCs in Wisconsin treated as a separate entity for liability purposes?
Yes, single-member LLCs in Wisconsin are treated as a separate entity for liability purposes.
Do I need to file a state tax return for my single-member LLC in Wisconsin?
Yes, single-member LLCs in Wisconsin need to file a state tax return if they earn income in the state.
Can I use a personal bank account for my single-member LLC in Wisconsin?
It is not recommended to use a personal bank account for a single-member LLC in Wisconsin as this can create confusion and liability issues.
Do single-member LLCs in Wisconsin need to provide a workers’ compensation insurance policy?
It depends on the type of business and the number of employees. Some businesses are exempt, but most will need to provide a workers’ compensation insurance policy.
Can a single-member LLC in Wisconsin engage in any kind of activity any business another to entity would be able to engage in?
Yes, a single-member LLC in Wisconsin can engage in any kind of activity that any other entity would be able to engage in.
Am I required to file federal income taxes on behalf of my single-member LLC in Wisconsin?
Yes, you most likely will need to file federal income taxes on behalf of your single-member LLC in Wisconsin.
Are single-member LLCs in Wisconsin required to obtain a state business license or permit?
It depends on the type of business. Some businesses may require a license or permit from the state of Wisconsin.
Can I form a single-member LLC in Wisconsin if I do not live in the United States?
Yes, you can form a single-member LLC in Wisconsin even if you do not live in the United States.
Can I run more than one business through my single-member LLC in Wisconsin?
Yes, you can run multiple businesses through a single-member LLC in Wisconsin as long as they are legally permissible.
What is the definition of a single-member LLC?
A single-member LLC is a limited liability company with only one owner.
Why form a single-member LLC?
Forming a single-member LLC in Wisconsin confers limited liability, which protects the owner’s personal assets from business risks.
Can I form a single-member LLC in Wisconsin if I don’t live in the state?
Yes, you can form a single-member LLC in Wisconsin even if you aren’t a resident of the state.
How long does it take to form an LLC in Wisconsin?
It typically takes three to four business days to process an LLC filing in Wisconsin.
Can I have more than one owner in a single-member LLC?
No, a single-member LLC can only have one owner.
Can I change an LLC from single-member to multi-member in Wisconsin?
Yes, you can change an LLC from single-member to multi-member in Wisconsin by filing an amendment.
Do I need a registered agent for my single-member LLC?
Yes, Wisconsin requires all businesses, including single-member LLCs, to appoint a registered agent.
Can I serve as my own registered agent for my single-member LLC in Wisconsin?
Yes, you can serve as your own registered agent for your single-member LLC in Wisconsin, but you will need a Wisconsin street address.
How do I obtain an Employer Identification Number for my single-member LLC in Wisconsin?
You can obtain an EIN for your single-member LLC in Wisconsin by applying to the IRS.
Is my single-member LLC in Wisconsin subject to state income tax?
Yes, single-member LLCs in Wisconsin are subject to state income tax.
What are the annual requirements for my single-member LLC in Wisconsin?
Wisconsin requires all LLCs to file an annual report and pay an annual fee.
Do I need to file a tax return for my single-member LLC in Wisconsin?
Yes, your single-member LLC in Wisconsin must regularly file both state and federal tax returns.
How do I dissolve my single-member LLC in Wisconsin?
You can dissolve your single-member LLC in Wisconsin by filing a form with the Secretary of State.
Can I transfer ownership of my single-member LLC in Wisconsin?
Yes, you can transfer ownership of your single-member LLC in Wisconsin by transferring ownership of the LLC’s assets to a new owner.
Can I name my single-member LLC anything I want in Wisconsin?
No, Wisconsin doesn’t allow names that are too similar to an existing business’ name or a name that’s confusing to the public.
Do I need to file documents to prove my single-member LLC in Wisconsin exists?
Yes, you will need to file documents with the Wisconsin Secretary of State to prove your single-member LLC in Wisconsin exists and is legally authorized.
Can I register multiple single-member LLCs under the same name in Wisconsin?
No, Wisconsin discourages naming confusion so the same name cannot be registered unless the Secretary of State deems it acceptable.
Can a company be an owner of a single-member LLC in Wisconsin?
Yes, a company can be an owner of a single-member LLC in Wisconsin if they meet the state’s requirements.
Can I convert a single-member LLC in Wisconsin into a different entity type?
Yes, you can convert your single-member LLC in Wisconsin by filing articles of organization for the new entity type.
Can a single-member LLC in Wisconsin count as a minority-owned business?
Yes, a single-member LLC in Wisconsin run and owned by an individual from a minority may count as a minority-owned business.
Can I use a PO Box to process mail for my single-member LLC in Wisconsin?
No, Wisconsin requires you use a standard street address for your single-member LLC, and can be operated from home.
What happens if I don’t file LLC annual reports in Wisconsin?
Non-filing is subject to late fees and delinquent reports and may potentially dissolve the LLC if delinquent for a year.
Do I need to get a business license for my single-member LLC in Wisconsin?
Yes, depending on what type of business activities you engage in, a business permit may be necessary to legally operate in Wisconsin.
Can I form my LLC in Wisconsin online?
Yes, you can establish a single-member LLC in Wisconsin online when submitting your application to the Wisconsin Department of Financial Institutions.
Can I get financial assistance for my single-member LLC in Wisconsin from the state?
There are several ways to obtain funding, such as collecting grants or loans, applied for through the State-run Wisconsin Economic Development Corporation
Can I hire employees with my single-member LLC in Wisconsin?
Yes, your single-member LLC in Wisconsin can hire employees like any other business once it’s established and in good standing.
What should I consider before forming a single-member LLC in Wisconsin?
Before establishing your single-member LLC in Wisconsin, careful consideration should be made regarding what type of LLC might best work for you, type of business, as well as determining what type of business documentation requirements exist in the state.

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Conclusion

Starting a single-member LLC in Wisconsin can be a rewarding experience that offers numerous benefits for entrepreneurs. By following this guide and staying informed about state regulations, you can successfully navigate the formation process and set your new business up for success. Feel free to seek professional assistance from a lawyer or accountant if you have questions or need help. Your journey as a business owner has just begun – embrace the challenges and enjoy the rewards of your hard work and determination.

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