How Much Does an LLC Cost in Wisconsin?

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Forming a limited liability company (LLC) in Wisconsin can provide important legal protections and tax benefits for your business. But before taking the plunge, it’s essential to understand the potential costs involved. While LLC expenses aren’t exorbitant, there are still a number of required state filing fees, taxes, licenses, and services that can add up. Being informed on the full range of Wisconsin LLC costs is key to budgeting wisely as you start your business.

Don’t let the fees deter you. The perks of forming an LLC typically outweigh the initial costs long-term. By learning the step-by-step requirements and expenses, you can launch your Wisconsin LLC affordably, efficiently, and with full confidence.

The Benefits of a Wisconsin LLC

Before diving into the costs, let’s review some of the top advantages that make forming an LLC worthwhile for many Wisconsin business owners:

Limited Personal Liability – Unlike sole proprietors, LLC members are not personally liable for business debts and legal judgments. Creditors cannot pursue your personal assets like savings and property to settle LLC debts.
Flexible Tax Treatment – LLCs allow you to choose how your business income is taxed. You can elect to be taxed as a sole proprietorship, partnership, S-corporation or C-corporation.
Increased Credibility – The formal LLC designation carries more credibility with customers, vendors and lenders compared to informal business structures.
Easier Access to Business Funding – Banks and investors often prefer lending to an LLC over a sole proprietorship or general partnership. An LLC structure provides them more security.
Easier Transfer of Ownership – LLC membership interests can be easily transferred among partners or sold. This is not as straightforward for sole proprietors and general partnerships.
Compliance and Paperwork Benefits – LLCs require less paperwork and have lower compliance requirements compared to corporations.

General Steps and Costs When Forming a Wisconsin LLC

Launching an LLC in Wisconsin involves a few key steps, each accompanied by certain state filing fees and administrative expenses:

Choosing a Business Name

Your first step is brainstorming and choosing the perfect business name. You’ll want a name that resonates with your brand and is available for use in Wisconsin. Thankfully, you can conduct a free business name availability search on the Wisconsin Department of Financial Institutions website. Simply enter your desired name, and they’ll let you know if it’s taken.

If your ideal LLC name checks out, you may want to file for an optional yet affordable name reservation to secure the name for up to 120 days. This costs just $15 in Wisconsin. Those planning to operate under a trade name or “Doing Business As” name will also need to complete a separate filing and pay a $25 fee per name registered. Registering a DBA name simply associates the trade name with your LLC but does not provide any legal ownership of the name.

Filing articles of organization

To formally create your Wisconsin LLC, the next step is preparing and filing articles of organization with the state. The articles of organization form establishes your business as a legal entity and provides important details like your LLC’s name, registered agent, business purpose, principal office address, membership structure, and more.

Filing your articles of organization costs $170 in Wisconsin. This fee is nonrefundable, so ensure your paperwork is properly completed before submitting. You’ll also owe an additional $10 for filing your Wisconsin LLC’s annual report, which is due in the calendar year following the calendar year in which your business was formed. More on that later.

Appointing a registered agent

All LLCs formed in Wisconsin must designate a registered agent on their articles of organization. This registered agent’s role is to receive important legal and tax documents on behalf of your LLC. By law, your registered agent must have an active business office in Wisconsin that is open during normal business hours. Their address will be listed on the state’s public records.

You have two choices when it comes to satisfying the registered agent requirement:

Serve as your own registered agent: You can save money by listing yourself or an existing member of the LLC. The caveat is that your personal home address will then be on state records.
Hire a third-party registered agent service: For approximately $200 per year, you can enlist an agency like Northwest Registered Agent to serve as your LLC’s registered agent. This provides privacy and reliability without you having to be available at all times.

Unless privacy is a major concern, most small Wisconsin LLCs can safely act as their own registered agent to skip this added cost. But for larger or more public companies, a third-party service is likely worth the investment.

Creating an operating agreement

Drafting an operating agreement is not legally required in Wisconsin but is highly recommended for any LLC with multiple members. An operating agreement outlines important details like ownership structure, voting procedures, member responsibilities, how profits and losses are divided, how assets are distributed should the LLC dissolve, and more. Having this business “prenup” in place can help prevent disputes among members and ensure all are clear on the ground rules. It also provides helpful guidelines for amending or dissolving the LLC in the future.

You have a few options when it comes to creating an operating agreement:

Write your own – You can research operating agreement templates online and draft your own customized version for free. But lacking legal expertise, you risk overlooking important provisions.
Use an online template – Various websites sell customizable LLC operating agreement templates for anywhere from $40 to $200+. These are easy to use but still may lack the specificity needed for your unique business.
Hire a business lawyer – For $500 to $1,000 or more, an experienced business lawyer can closely review your LLC details and tailor a comprehensive operating agreement accordingly. This is viewed as the most legally protective option.
Use an LLC formation service – Some online LLC formation services include a customized operating agreement along with preparing and filing your articles of organization for one flat rate starting around $200 to $300.

Other Annual & Ongoing Wisconsin LLC Costs

Beyond the core formation requirements, you’ll need to account for the following ongoing costs associated with maintaining your LLC each year:

Annual Report Filing

Your Wisconsin LLC must file an annual report each calendar year following the year it was formed to maintain active status with the state. Reports are due by December 31st. You can quickly complete Wisconsin LLC annual reports online via the Department of Financial Institutions website. The filing fee is just $10 per year. Failing to file your annual report for multiple consecutive years can result in involuntary dissolution of your LLC. So be sure to calendar your annual deadline to avoid added fees and complications.

State Taxes

Wisconsin does not have a state-level franchise tax or imposition tax. So you won’t need to worry about any added LLC state taxes beyond federal IRS taxes.

Business Licenses & Permits

Most LLCs need to obtain certain Wisconsin business licenses and permits based on their industry and location. Common examples include:

Be sure to thoroughly research which licenses and permits your specific LLC will require at both the state and local level. Some municipalities also impose their own licensing requirements.

License & Permit Renewal

Many Wisconsin business licenses and permits need to be renewed annually for your LLC to remain compliant. For example, food handling permits must be renewed before June 30 each year, which involves a $75 renewal fee. Liquor licenses also require annual renewal and fees. Factor in these ongoing licensing expenses as you budget to operate your Wisconsin LLC each year. Set calendar reminders so you always renew licenses on time.

What expenses you can write off

The good news is that most initial Wisconsin LLC formation costs can be deducted from your federal taxes:

Articles of organization filing/processing fees
DBA/trade name registration fees
Registered agent service fees
Fees paid for drafting an operating agreement
Accounting fees
Legal fees for setting up the LLC
LLC state & local license/permit fees

Be sure to discuss write-offs with your accountant and properly categorize deductible formation costs when filing taxes each year. This can help offset some of your upfront LLC expenses.

Wisconsin LLC Costs – A Recap

Let’s recap the typical expenses involved with forming and running an LLC in Wisconsin, both required and optional:

Initial Startup Costs:

LLC filing fee (articles of organization)	$170
Registered agent fees	$0 to $200 or more
Annual report filing fee	$10
Operating agreement creation	$0 to $1,000 or more
Name reservation (optional)	$15
DBA filings (optional)	$25 per name
License/permit renewals	$0 to $100 or more
Business licenses	$20 to $500

Don’t let the list overwhelm you. Many costs are one-time startup expenses. Ongoing costs like annual reports and license renewals are quite affordable. View the costs as an investment in your business that will pay dividends down the road through liability protections, tax savings, and credibility with customers.

Conclusion

Forming an LLC involves thoughtful preparation and budgeting to ensure you account for all Wisconsin state fees and costs. But you don’t need to go it completely alone. Services like LLC formation companies and business lawyers can provide affordable assistance navigating the requirements. By understanding the full range of potential LLC expenses and using available resources judiciously, you can launch your Wisconsin LLC smoothly, affordably, and with full confidence. Here’s to your new entity’s success!

FAQ

What should you know about picking an LLC name in Wisconsin?

Your name should be relevant to your business or easily branded. You may either use it for all business activities or only in official capacity. You will also need a DBA (doing business as) as your customer-facing name.

Do you need an EIN in Wisconsin?

If you plan to have employees, you need an EIN or employee identification number.

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