You might want to think about establishing an LLC if you intend to launch a business in Wisconsin. Small business owners frequently choose an LLC because it offers pass-through taxation and personal liability protection. But how much does it cost in Wisconsin to form an LLC?
In Wisconsin, establishing an LLC costs $130. The website of the Wisconsin Department of Financial Institutions accepts payments for this fee. The price of hiring a lawyer to design your LLC operating agreement and the price of paying for any business-related licenses or permits are extra expenses that you might want to take into account.
It’s crucial to keep in mind that the name you choose for your LLC must be distinct and not in use by another company in Wisconsin when making this decision. On the website of the Wisconsin Department of Financial Institutions, you can look up names that are currently available. Your LLC name must also contain the words “Limited Liability Company” or an acronym like “LLC.”
You must submit an annual report to the Wisconsin Department of Financial Institutions and pay a $25 filing fee even if your LLC is not profitable. If you don’t do this, you risk fines and having your LLC status revoked.
An LLC is nonetheless regarded as a legal business entity even if it doesn’t generate revenue. However, the IRS may designate your LLC as a hobby and deny any business deductions on your tax return if it habitually operates at a loss.
No, an LLC is not required to deduct business expenses. However, having an LLC may increase your liability protection and make it simpler for tax purposes to distinguish between your personal and business costs.
In conclusion, Wisconsin charges $130 for the formation of an LLC. Make sure the name you choose for your LLC is distinct and contains the necessary words. You still need to submit an annual report and pay the filing cost even if your LLC is not profitable. And even while an LLC is not necessary to deduct business expenses, it can nonetheless benefit and protect your company by offering additional advantages.