In Wisconsin, a record number entrepreneurs have started their own businesses over the past year. There are many business structures, but limited liability companies (LLCs), are the most popular. This article will help you learn how to create an LLC in Wisconsin. Continue reading to learn all you need to know about creating an LLC.
Establishing an LLC in Wisconsin
There are a few things you need to do before you can form an LLC. This will make it easier to file paperwork and pay fees.
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Check Name Availability
Your company may be able to register its name in another location, but that does not mean it will work in Wisconsin. Your LLC must be distinguished from other entities within the state. It’s always a good idea for a quick search of business names through the state website.
After you have confirmed your name is available, you may fill out a reservation application which will hold your LLC name for up 120 days. The filing fee is $15.
After you have chosen a name, it is a smart idea to register a domain. It’s also possible to set up social media accounts that you will use to market your business. Although a website domain and social media accounts are not required to create an LLC, they will help you secure the names that you desire and provide consistent branding.
Appoint a Registered Agent
You will need someone to act on your behalf as a registered agents and accept official documents. If you are a Wisconsin resident and have a business address in the state, you can either be the registered agent or a member (owner). This can be a cost-effective option for some.
These are the first steps to help you get started with your LLC setup in Wisconsin.
Register Your Wisconsin LLC
The Department of Financial Institutions requires that you file your LLC paperwork. You have the option to file your LLC paperwork online, or by mail. To file in person or by mail, you can download your Articles of Organization and Form 502. Instead, submit a Certificate Of Registration (Form 521). For expedited services, please note that the fee for submitting forms is $25.
The cost of submitting physical Articles of Organization paperwork is $170. However, the online process costs $130. To register an LLC in Wisconsin, foreign entities must pay $100
After You Form Your Wisconsin LLC
Registering your LLC successfully is only the beginning. There are many other steps you can take to maintain your business’s good standing and give it a solid foundation.
Make an Operating Agreement
Operating agreements are documents that provide information about how your LLC will operate. An operating agreement, for example, outlines the business’s structure and details each member’s financial obligations. Although it is not required by law to create an operating agreement, it is a good idea. This will avoid any confusion or misunderstandings regarding member roles, and give your business legitimacy and a sincere purpose.
Register for an Employer Identification Number (EIN).
Federal law requires that all LLC owners obtain an EIN. This helps the IRS track your tax filings. An EIN is required for all LLCs. However, single-member LLCs without employees can use the owner’s Social Security Number instead. An EIN has nine digits and is also known as a Federal Tax Identification Number or Federal Employer Identification Number. The IRS website can provide your EIN.
Annual Domestic and Foreign LLC Filings
Each year, both in-state and out-of state LLCs must file reports to the Wisconsin Department of Financial Institutions (DFI). The Department sends forms to your registered agent each year and informs businesses when they are due. You can file online instead of filing physically. Annual report fees are $25. Foreign LLCs pay $80. Other annual costs may apply to your LLC. For example, if you have a business acting as your registered agent, you might be charged a fee.
Correction of Filing Mistakes
If you have completed your LLC registration and then realize that you made an error, please immediately submit Form 53, The Articles for Correction. To complete the document, you must use black ink and send a $40 check to the DFI.
Dissolution of your Wisconsin LLC
You can submit Form 510 or Articles to Dissolution if you decide that your LLC must be disbanded. Additional $25 is required for the expedition.
You can reach the Department of Financial Institutions directly if you have any questions about your Wisconsin LLC. You can call 608-261-9555 or email DFICorporations@dfi.wisconsin.gov
Most Frequently Asked Questions
What is a Limited Liability Company, or LLC?
A limited liability company can be described as a legal entity that is owned by and managed as a business. This company provides owners with the same level of liability protection as a corporation, but allows for more flexibility in taxation and management.
What is the cost of forming an LLC in Wisconsin
For $170 if you submit paper paperwork, and $130 online, it costs to form a domestic LLC within Wisconsin. A Wisconsin out-of-state LLC registration costs $100
Can I be my own registered agent?
Yes, provided you are a Wisconsin resident and at least 18 years of age. A registered office must be established in Wisconsin. The registered office is where the registered agent conducts business. An LLC cannot be its own registered agent.
What tax flexibility can an LLC offer?
LLCs can be taxed in a variety of ways: as partnerships, sole proprietorships, C corporations, or S corporations. This allows LLC members to reduce their tax burden.