The Wisconsin Department of Financial Institutions offers a Business Name Availability Tool that you can use to determine whether your desired business name is available. If it is not available, unfortunately you will have to choose another name for your business. Wisconsin does not allow two companies with the same name to operate in the state at the same time. It is also in the company's interest to choose a name that will not confuse potential customers or future clients.
Additionally, Wisconsin prohibits the use of names that are similar to existing LLCs or corporations in the state to the extent that they are reasonably likely to cause confusion. For example, simply adding “A” or “The” in front of a name that is already registered may cause confusion and is not allowed.
Of all the ways to form an LLC in Wisconsin, the one that tends to surprise aspiring business owners the most is the requirement to appoint a registered agent for the company. This agent will serve as the company's point of contact for official mail and legal notices from the state. Additionally, the person you appoint as your registered agent is not required to maintain a registered office (legal address) at your company's place of business.
According to Wisconsin law, the registered agent for WI LLC is:
- A natural person who is a resident of Wisconsin and whose place of business is used as its registered office.
- A company organized in Wisconsin with a place of business serving as its registered office.
- A company outside of Wisconsin that is authorized to do business in the state and whose place of business is used as its registered office.
You may also choose to use a registered agent service whose primary job is to act as a registered agent for LLCs and corporations. They will receive legal documents addressed to your company and alert you when they receive them.
If your company officially employs at least one person, you must obtain an official employment identification number (EIN) from the IRS. This number works for businesses in much the same way that Social Security numbers work for individuals. This is proprietary and will not be shared by other businesses as long as your company is in operation.
An important part of learning how to form an LLC in Wisconsin is knowing that the state requires annual reports to be filed. Understanding this reporting requirement now will help ensure you are tracking all the essential information required by your state as soon as you launch your LLC.
The easiest way to file your annual report is to visit your state's one-stop business portal and file online. First, search for your registered business name and follow the instructions online. Before submitting your file, please make sure you have the following information available:
- The state/country under which your company is incorporated
- Name and address of the LLC's registered agent
- Your company's principal office address (where the LLC has its principal executive offices)
- Name and address of each manager and member
- A brief description of the nature of the business
Although this step is not technically required by the state as part of the process of forming an LLC in Wisconsin, LLC members are advised to take the time to draw up an operating agreement before opening a company. Must be considered. An LLC operating agreement allows you to:
- Detail your financial expectations, including how distributions will be handled
- Document your LLC's management structure
- Protect your company's limited liability status
- Clarify ownership ratio
- Explain the buying and selling rules
Although this step may not be required by your state, you should take it seriously to avoid legal, financial, and practical tensions in the future.
Think of it as a business roadmap that addresses both the opportunities your company is pursuing and the challenges (including potential problems) it faces along the way. It should also include the responsibilities, competencies, remuneration and contributions of key executives. Some companies provide funding, while others are more operational and others provide inventions or other valuable resources.
Additional resources that can be added to an operating agreement include:
- member meeting
- voting rights
- Right to quit and dissolution procedures
- dispute resolution
The initial costs for forming a limited liability company in Wisconsin are relatively affordable compared to other states. The filing fee to register your articles of incorporation with the Wisconsin Department of Financial Institutions is only $130. If you hire a business lawyer to handle the incorporation process, it will usually cost him between $400 and $800. Business licenses, permits, and business name registration costs typically total several hundred dollars at the local level.
On an ongoing basis, Wisconsin LLCs must file an annual filing fee of $130. Multi-member LLCs are also subject to the 7.9% Wisconsin corporate tax on profits over $100,000. In addition, LLC owners must budget for unemployment insurance taxes, workers' compensation insurance, legal and accounting support, commercial leases if they rent space, and other basic operating costs. All things considered, startup costs and first year costs for forming an LLC in Wisconsin can cost anywhere from $1,000 to more than $2,000.
In most states, LLCs that provide professional services are formed as professional limited liability companies rather than traditional LLCs. Wisconsin law allows traditional LLCs to provide professional services and does not allow the formation of PLLCs. Companies that are typically formed as PLLCs in other states can be formed as “service companies” in Wisconsin. Like regular corporations, service corporations are owned by shareholders and authorized to issue stock.
The rules for forming a single-member Wisconsin LLC and the rules for forming a multi-member Wisconsin LLC are the same regardless of whether professional services are provided by the new business. Next, we'll take a closer look at how to form an LLC in Wisconsin. If you feel like this process is too much to handle on your own, be aware that LLC formation services can be of great help.