To create an LLC in Wisconsin, you must first decide on a name for your company. The phrase “Limited Liability Company” or “LLC” must appear in the name. Additionally, it must be original and not in use by another Wisconsin company. On the website of the Wisconsin Department of Financial Institutions, you may see if the name you want is available.
The second step is to select a registered agent. A registered agent is a person or organization chosen to accept critical mail and legal papers on your company’s behalf. A Wisconsin resident or a company with a license to operate there must serve as the registered agent. Although it’s possible for you to take on the role of registered agent yourself, working with a reputable registered agent firm is frequently simpler.
Step 3: Submit Articles of Incorporation You must submit Articles of Organization to the Wisconsin Department of Financial Institutions in order to formally establish your LLC in Wisconsin. Basic information about your company, such as its name, address, registered agent, and objectives, must be provided. Currently, the filing fee is $130.
An employer identification number, or EIN, is a special code for your company used for tax purposes. You must apply for an EIN from the IRS online, which is free. Even if you don’t have any employees, you should still complete this step because you’ll need it to open a company bank account and file taxes.
A single-member LLC does provide its owner with personal liability protection. This implies that in most cases, your personal assets are safeguarded if your firm is sued or goes into debt. It’s crucial to remember that this defense is not absolute and that there are situations in which a judge could “pierce the veil” of the LLC and hold its owner personally responsible.
The fact that a single-member LLC is regarded as a “pass-through” entity is one of its key tax advantages. This means that the LLC’s income is “passed through” to the owner’s personal tax return rather than being taxed directly by the LLC. In comparison to a regular corporation, this may lead to a lower tax rate. Single-member LLCs are not required to comply with the same formalities and tax regulations as corporations.
Wisconsin presently charges $130 for the filing of the Articles of Organization necessary to form an LLC. Nevertheless, depending on your business operations, there can be additional costs for other necessary permissions or licenses. Before establishing your firm, it’s crucial to do your research and create a budget for all possible expenses. Is ZenBusiness a Good Product?
ZenBusiness is a well-known online tool for business owners to create and handle LLCs. They offer registered agent services, assistance with paperwork, and aid obtaining an EIN. Customers have generally given ZenBusiness high marks for its simplicity of use and reasonable costs. However, before selecting a service for your company’s needs, it’s crucial to conduct your own research and compare several options.