Last year, many individuals embarked on their entrepreneurial journey in Wisconsin. A popular choice among them was to establish Limited Liability Companies (LLCs), primarily due to the intense protection they offer and their direct management. If you’re considering this path, our complete guide on how to start an LLC is your one-stop resource. It provides all the necessary details and forms and highlights the key benefits of this business structure. Keep reading to learn more!
Step 1: Name your Wisconsin LLC
Step 2: Choose a Registered Agent
Step 3: File an Articles of Organization
Step 4: Received a Certificate From the State
Step 5: Obtain an Operating Agreement
Step 6: Get an Employer Identification Number
Step 1: Name your Wisconsin LLC
When you start your own LLC, you must choose a name to include in your articles. Here are the most essential requirements to keep in mind:
- Include LLC in the Name
- Your business name must include Limited Liability Company, LLC, or L.L.C.
- Ensure Uniqueness
- Your business name must be unique and not match any existing business within the state.
- You can search for name availability on the Wisconsin Secretary of State’s website or check this link.
- Avoid Government Agency Names
- The business name cannot contain words used to name a government agency (e.g., State Department, CIA, FBI, Treasury).
- Restricted Words
- Words like bank, lawyer, attorney, and credit union may require additional documentation and licensure paperwork.
- Check Complete Naming Rules
- Here’s a complete listing of Wisconsin’s naming rules to ensure compliance.
Additional Consideration:
Reserve your Name:
Once you confirm your desired LLC name is available by searching the Wisconsin Secretary of State’s website, you can secure it by filling out a name reservation application. This application and a nonrefundable $15 filing fee will hold your business name for up to 120 days, giving you enough time to prepare and file your Articles of Organization.
Website domain:
Even if you don’t plan to create a website immediately, securing your domain name is wise now. Before finalizing your LLC name, check if the corresponding URL is available to ensure you have the option to establish an online presence later.
Step 2: Choose a Registered Agent
A registered agent in Wisconsin is an entity or individual responsible for receiving essential tax and legal documents on behalf of your LLC. According to state law of Wisconsin, If the agent is an individual, they must be a Wisconsin resident. The agent must be authorized to conduct business in Wisconsin if the agent is an entity. Your LLC cannot name itself its registered agent; however, a member can serve as the registered agent if they are a Wisconsin resident.
Here are some additional things to remember:
- Your LLC’s registered agent must have a registered office address in Wisconsin (no P.O. Box, mailbox service, telephone answering service, or virtual office).
- Your LLC’s registered agent should keep regular business hours at that address.
- Your LLC’s registered agent should be available at the street address to accept formal and legal correspondence.
Step 3: File an Articles of Organization
Filling out your company’s official Wisconsin LLC Articles of Organization is crucial in starting an LLC in Wisconsin. Submitting this form makes your company official in the eyes of the state.
You must provide the following information:
- The name of your company
- The names and addresses of the LLC members/organizers
- The name of your registered agent:
You can complete the process online or submit documents by mail or in person. Download and complete your Articles of Organization (Form 502) for in-person or mail filings. Foreign or out-of-state business Entities must submit a Certificate of Registration (Form 521). Please note that expedited service for submitting forms is $25.
Submitting physical Articles of Organization paperwork costs $170; however, completing the process online costs $130. Foreign entities pay $100 to register their LLCs within Wisconsin.
Step 4: Received a Certificate From the State
Once your LLC’s formation documents are approved, the state will issue a certificate confirming the LLC’s official existence. This certificate will allow the LLC to obtain a business license and a bank account.
Step 5: Obtain an Operating Agreement
Although the state doesn’t require this step, your LLC members must create an operating agreement before starting your business. An LLC operating agreement can:
- Detail how members will share money
- Explain the management structure of your LLC
- Protect your company’s limited liability status
- Define ownership percentages
- Set rules for buying and selling ownership.
While optional, this step is essential to avoid future problems. Think of it as a business plan that addresses both opportunities and challenges.
Include your key members’ roles, responsibilities, pay, and contributions. Some may provide money, while others handle business operations or contribute valuable resources.
Additional topics to include in your operating agreement might be:
- Member meetings
- Voting rights
- Exit rights and dissolution process
- Dispute resolution
Step 6: Get an Employer Identification Number
When setting up your business, you must ensure your LLC is ready to pay taxes. You must get a federal payroll and taxes EIN if your LLC has employees. You can get an EIN for free on the IRS website.
Even if you don’t have employees, you should still apply for an EIN. It helps pay employees, handle taxes, open a bank account, and get a business card.
Following these steps, you can start your LLC in Wisconsin and begin operating your business.
LLC State Guides
FAQs
What are the fees to start an LLC in Wisconsin?
Starting an LLC in Wisconsin is cost-effective, costing $130 for filing Articles of Organization online or $170 for filing by mail or in person. Additionally, name reservation is optional at $15, with an optional expedited service fee of $25. For foreign LLC registration, the cost is $100.
How can you update your LLC address in Wisconsin?
To update your LLC’s address in Wisconsin, you must complete Form 504 with your LLC’s name, the initial filing date, and the new address, then submit the form online or by mail to the Wisconsin Department of Financial Institutions. The nonrefundable filing fee is $40, and an additional $25 fee applies for expedited processing.
What advantages come with forming an LLC in Wisconsin?
Starting an LLC in Wisconsin has several benefits. It protects your assets, like your home and car, from business debts and legal issues. LLCs offer flexible tax options, allowing you to choose how you want to be taxed. The management structure is simple, with fewer record-keeping requirements than corporations.
