Wisconsin, the Badger State, known for its picturesque views, delightful cheeses, and football culture, has emerged as an increasingly appealing location for new and small businesses owing its its balanced economy, favorable taxation, and its excellent small scale entrepreneurial support framework.
Starting an LLC in Wisconsin offers a non-resident a competitive and effective means to legally navigate the American economy as both a US citizen and a non-resident.
This comprehensive guide will explore the nitty gritty details of the LLC formation process in Wisconsin.
Why Form an LLC in Wisconsin?
✅ Midwest’s Keystone
On top of it being in the heart of the midwest, Wisconsin is a key gateway to the core markets of the US. It is also supported by an extensive transit network.
✅ Governmental Support and Incentives
Wisconsin offers its home grown entrepreneurs multiple initiatives geared to support new and existing businesses in the form of tax credits, loans, and grants for new age tech start-ups and export companies. Moreover, the Wisconsin Economic Development Corporation (WEDC) is known for its hands on assistance.
✅ Cost Effectiveness
Wisconsin is a good option for small and medium enterprises (SMEs) because it offers comparatively lower commercial rent, labor, and overhead expenses relative to large states like New York or California.
✅ Flexibility and Protection from Liabilities
In Wisconsin, LLCs (Limited Liability Companies) benefit from pass-through taxation, meaning taxes are only deducted on the owner’s returns. In this case, your personal wealth is shielded from any claims and liabilities arising from your business.
✅ No Requirement For Citizenship or Residency
Albeit a foreigner, an individual is free to fully and independently own a Wisconsin LLC and does not have to be a US citizen nor a resident.
Step by Step Procedure to Register an LLC in Wisconsin
1. Select a Name For Your Wisconsin LLC
One of the first critical branding choices you will make for your business is the name. In Wisconsin, LLCs are required to have names that are not only unique but also distinguish them from others.
Business Name Rules:
- Must include “Limited Liability Company,” “LLC,” or “L.L.C.” as part of the name.
- Must not suggest any affiliation with an agency of the government (e.g., FBI, Treasury)
- Must be distinguishable from business names already registered in the Wisconsin DFI database.
- “Attorney,” “Bank,” or “University,” among others, could require special permission.
Pro Tip: Filing a Name Reservation form allows you to reserve a business name for up to 120 days for a $15 fee to the DFI.
2. Designate a Registered Agent in Wisconsin
A registered agent is an individual or business entity that gets legal documents, government mail, and serves documents for your LLC.
- Must be located within Wisconsin (a PO Box is not an acceptable address).
- Must be in the office during normal business hours.
- Must be an LLC member, a third-party individual, or a registered agent service.
Bizstartz Tip: If you’re a non-U.S. resident without a physical address in Wisconsin, registered agent services with mail forwarding and document handling from Bizstartz are available.
3. Submit the Articles of Organization
The Wisconsin DFI requires that you submit the Articles of Organization, the document that formally establishes your Wisconsin LLC, for it to be registered.
How to File:
- Online through DFI’s corporate filing system
- By mail using Form 502 – Articles of Organization
Information Required:
- LLC’s name and address
- Registered agent’s name and address
- Whether the LLC will be member-managed or manager-managed
- Each organizer’s name and address
- Effective date of formation (can be immediate or set to a future date)
Filing Fee:
- $130 (Online)
- $170 (By mail)
✅ Processing Time: Online submissions are typically processed in 1-2 business days, while mailed submissions may take 5-7 business days.
4. Draft an Operating Agreement
An Operating Agreement describes the internal organization of the LLC. It explains the rights and responsibilities of each member and how the profits will be shared, along with the decision-making process.
Key Elements to Include:
- Member vs. manager governance structure
- Percent of ownership
- Rights and rules associated with voting
- Rules for member addition or removal
- Distribution of profits model
- Resolution of disputes model
✅ Note: Even though it’s not a requirement in the state of Wisconsin, it is highly advisable to have an Operating Agreement to prevent internal conflicts, ensuring the LLC is recognized legally as a separate entity, particularly in judicial proceedings.
5. Get an Employer Identification Number (EIN)
An EIN, or Employer Identification Number, is a Federal Tax ID Number, which the IRS issues.
- Hiring employees
- Opening a U.S. business bank account
- Filing federal and state taxes
- Applying for licenses and permits
How to Apply:
-
- Online at IRS.gov
- Through Form SS-4. This is the best option if you do not have a Social Security Number.
✅ Non-USA residents are not required to have an SSN. They can submit the application through fax or mail. Even without an SSN or ITIN, Bizstartz assists clients in securing an EIN quickly.
6. Register for Wisconsin State Taxes (If Necessary)
You may need to register with the Wisconsin Department of Revenue based on your business type.
Common State Tax Registrations:
- Sales and Use Tax Permit: If you sell physical products or taxable services.
- Withholding Tax: If you have employees.
- Excise Tax: Industries such as tobacco, alcohol, or fuel.
You can register at the Wisconsin One Stop Business Portal openforbusiness.wi.gov.
7. Submit your Wisconsin LLC Annual Report
Every LLC based in Wisconsin is required to submit an Annual Report in order to continue to be in good standing with the state.
Document Summary:
- Affirms business address details, registered agent, and the organizational structure of the entity.
- Deadline is the last day of the quarter for the LLC formation date.
- Submission is exclusively through the DFI portal.
Payment: $25
✅ Losing track of deadlines can cost you extra fees, or in worse cases, administrative dissolution of your LLC.
8. Open a US business bank account
A separate business bank account is important for:
- Sustaining the legal distinctiveness of personal and business finances.
- Establishing business credit.
- Handling payments from clients and from Amazon, Shopify, Stripe, and Paypal.
Necessary documents:
- EIN confirmation letter.
- Articles of Organization.
- Operating Agreement.
- Passport and proof of address (for non-U.S. citizens).
✅ Bizstartz assists foreign clients in setting up US business bank accounts.
Additional Steps for Non-U.S. Residents
For our clients forming LLCs in Wisconsin from outside the United States, here are a few pointers:
- No SSN Needed: LLC and EIN can be obtained without a social security number.
- BOI Reporting: Starting in 2024, you will be required to file a Beneficial Ownership Information (BOI) report to FinCEN.
- ITIN Application: To file taxes, you may require an Individual Taxpayer Identification Number (ITIN) in the United States.
- Remote Bank Account Setup: Unlike most traditional U.S. banks that require business account signers to come in for an in-person visit, international founders can enjoy remote business bank account setup with Bizstartz.
How Bizstartz Can Make Your Wisconsin LLC Formation Easy
The prospect of starting a business in a different country can be daunting. To ease the burden, Bizstartz offers all-in-one LLC formation packages tailored to both U.S. and international founders.
Bizstartz offers:
✅ LLC Formation in Wisconsin
✅ EIN Application (with or without SSN)
✅ Registered Agent & U.S. Business Address
✅ Custom Operating Agreement
✅ BOI Reporting Compliance
✅ U.S. Bank Account Opening
✅ ITIN Assistance
✅ Post-Formation Tax Compliance
👉 Visit Bizstartz.com to get started.
Concluding Remarks
For either domestic or international entrepreneurs, starting a business in Wisconsin means having a reliable and well connected business environment with a low cost of doing business. Setting up an llc is easy and with low cost doing business in Wisconsin, it makes it an attractive state to do business.
👉 Looking to form Wisconsin LLC in a simple manner?
Let us do it all for you, including paperwork, compliance obtention, us bank account setup and more. Start Now at Bizstartz.com
FAQs: Forming An LLC In Wisconsin
1. How long does it take to form an LLC in Wisconsin?
Your LLC can be approved in as little as 1-2 business days with an online filing. Mail submissions can take 5-10 business days or more.
2. Can a non-U.S. citizen form an LLC in Wisconsin?
Yes, absolutely. A non-citizen does not need a Social Security Number to own an LLC in Wisconsin.
3. What taxes do Wisconsin LLCs pay?
LLCs enjoy the benefit of pass-through taxation. However, you may still be liable for sales tax, franchise tax, or employment tax depending on your business type.
4. Do I need a business license in Wisconsin?
It depends on your industry and location. Some professions and cities require more business licenses. You can check with local municipalities or Bizstartz can assist you in figuring out the permits you need.
5. What happens if I don’t file the annual report?
Failing to file your annual report may lead to your LLC losing good standing status and being administratively dissolved by the state.
