Select a Name for Your LLC in Step 1 To create an LLC in Wisconsin, you must first decide on a name for your company. The name must be original and unclaimed by another company operating in the state. On the website of the Wisconsin Department of Financial Institutions (DFI), you may see if the name you want is available. Once you have a name, you may submit a name reservation application to the DFI to reserve it for up to 120 days.
Step 2: Submit Articles of Incorporation Articles of Organization must then be submitted to the DFI. The name and address of your company, the name and address of the registered agent, and the names of the LLC’s members are all listed in this formal document that establishes your LLC. The filing price for this document is $130, and you may submit it either online or by mail.
Step 3: Write an Operating Agreement
Writing an operating agreement for your LLC is a good idea even though it isn’t legally necessary. This document describes the operations of your company, including the decision-making process, the allocation of profits and losses, and what occurs in the event that a member terminates their membership in the LLC. A written operating agreement can help avoid future conflicts.
Step 4: Acquire Required Licenses and Permits You might need to seek additional licenses or permissions to operate in Wisconsin depending on the type of business you have. A business license, a sales tax permit, and a professional license for a particular specialty like law or medicine are some examples of common licenses and permits. For more information, you can contact the Wisconsin Department of Revenue and the Department of Safety and Professional Services. Do I Have to Renew My LLC in Wisconsin Every Year? Yes, LLCs in Wisconsin must submit a yearly report to the DFI along with a $25 filing fee. By the conclusion of the LLC’s anniversary month each year, this report is required. How Much Does It Cost in Wisconsin to Form an LLC? In Wisconsin, there is a $130 filing cost for articles of organization. Additionally, an annual report that LLCs are required to file costs $25. Do Sole Proprietorships Need to be Registered? No, sole proprietorships are not required to register with the state, in contrast to LLCs. However, you might still need to seek specific licenses or permits depending on the type of your firm. There is no restriction on the number of employees a sole proprietorship may have. You are, nevertheless, personally liable for any obligations relating to your employees since you are the sole proprietor. If you wish to reduce your personal liability, think about creating an LLC or another type of company entity.
In conclusion, in order to establish an LLC in Wisconsin, you must select a distinctive name, submit your articles of organization, draft an operating agreement, and get all required licenses and permissions. Although creating and maintaining an LLC entails costs, many small business owners may find the personal liability protection it provides to be worthwhile.
In Wisconsin, changing from a sole proprietorship to an LLC is allowed. A lot of small business owners really decide to switch to an LLC because it offers better liability protection and potential tax advantages. However, it is crucial to follow the right procedures and stages, which include submitting the relevant documentation and acquiring any necessary licenses and permits, while establishing an LLC in Wisconsin. To make sure the transition is handled properly, it could also be beneficial to speak with an attorney or accountant.