Wisconsin LLC: How to Start an LLC in Wisconsin 2024

Introduction

This tutorial will guide you through the process of forming a Limited Liability Company (LLC) in Wisconsin in 2024. We will cover the essential steps to ensure that you set up your LLC correctly and remain compliant with state regulations. Whether you're starting a new business or transitioning an existing one, this guide will provide you with the necessary steps to get started.

Chapter 1: Name Your LLC

1. Conduct a Name Search
   • Check if your desired LLC name is available in Wisconsin using the state name search tool. You can find the link in the resources below.
2. Domain Name Availability
   • Ensure that a corresponding domain name is available if you plan to create a website for your business.
3. Compliance with Naming Rules
   • Familiarize yourself with the naming guidelines for LLCs in Wisconsin to ensure compliance.

Chapter 2: File Articles of Organization

1. Prepare Articles of Organization
   • File your Articles of Organization with the Wisconsin Department of Financial Institutions.
   • Current filing fee is $130.
2. Submission Methods
   • You can file online, by mail, or deliver it in person. Online filing is recommended for convenience.
3. Decide Management Structure
   • Choose between member-managed and manager-managed. Most choose member-managed, where the owners manage the LLC.

Chapter 3: Create an Operating Agreement

1. Understand the Purpose
   • An operating agreement outlines ownership and operational procedures, helping to avoid future conflicts.
2. Include Key Elements
   • Document organizational structure, management and voting structure, capital contributions, distribution rules, membership changes, and dissolution rules.
3. Recommendation
   • While not required, it's highly recommended to create this document. Consider using services like Northwest to assist.

Chapter 4: Obtain Your EIN

1. What is an EIN?
   • An Employer Identification Number (EIN) is a federal tax identification number for your business, similar to a Social Security Number.
2. Why You Need It
   • Required for tax purposes, opening a business bank account, and hiring employees.
3. How to Apply
   • Apply online or by mail at no cost.

Chapter 5: Hire a Registered Agent

1. Role of a Registered Agent
   • A registered agent receives legal documents on behalf of your LLC, ensuring you do not miss important communications.
2. Eligibility
   • Must be a full-time resident of Wisconsin or a registered agent service.
3. Considerations
   • Avoid being your own registered agent to protect your privacy. Services typically cost between $100 and $150 per year, but using Northwest can offer the first year for free.

Chapter 6: Compliance and Business Licenses

1. Understand Compliance Requirements
   • Research any necessary business licenses and permits required for your specific industry in Wisconsin.
2. Annual Report
   • File your Wisconsin LLC annual report, which costs $25. The due date varies based on your business type and registration date.

Chapter 7: Steps After Forming Your LLC

1. Open a Business Bank Account
   • Keep your personal and business finances separate to maintain your LLC's liability protection.
2. Consider a Business Credit Card
   • Helps manage expenses, build credit, and can offer cash back or rewards.
3. Hire an Accountant
   • To assist with tax filings and ensure compliance. They can also help determine your tax strategy, including the potential for electing S-Corp status.

Conclusion

Forming an LLC in Wisconsin involves several important steps, from choosing a name to ensuring ongoing compliance with state regulations. By following the steps outlined in this guide, you'll be well on your way to successfully establishing your business. Consider utilizing services like Northwest for additional support throughout the process. Good luck on your entrepreneurial journey!