How to Start an LLC in Wisconsin – 4 Quick and Easy Steps
Our firm’s business attorneys are approached by clients’ all the time asking how to start an LLC in Wisconsin. Since, we are asked this question so frequently, we thought it would be helpful to provide online readers with a few basic steps to start an LLC in Wisconsin.
Step 1 – CHOOSE A NAME FOR YOUR WISCONSIN LLC
Problems with name choices are the number one reason for rejected submissions. To make the process easier and faster, do the following steps before you register your LLC with the Wisconsin Department of Financial Institutions:
a.Check the Wisconsin Department of Financial Institutions website, Name Availability Guide, at www.wdfi.org, for the guidelines of acceptable company names.
c. Follow the Rules: The name must contain the words Limited Liability Company or Limited Liability Co. or end with the abbreviation LLC (without periods) or L.L.C. (with periods).
Step 2 – FILE THE ARTICLES OF ORGANIZATION
The Online Wisconsin Limited Liability Company filing fee is $130.00 and this fee is not refundable. You can expedite the filing process for an additional $25.00. All of our firm’s online LLC packages include the online filing fee and the expedited filing fee. Attorneys typically charge $1,200-$5,000 to form an LLC in Wisconsin, depending on the number of LLC members and the complexity of the arrangements. Subhan Law Office, LLC, offers clients’ the ability to form an LLC in Wisconsin online, anytime, from anywhere, and on any device, starting at $395-$595. Visit our website for more information at http://www.subhanlaw.com/wisconsinllclawyer/
Step 3 – DRAFT AN OPERATING AGREEMENT
The operating agreement is the main governing document of an LLC in Wisconsin, subordinate only to the articles of organization. The operating agreement defines how the LLC will run itself. The operating agreement covers how the business will be run on a day-to-day basis including: (1) management structure, (2) allocation of distributions, (3) LLC accounting, (4) disassociation or dissolution of the business, and much more. If your LLC were ever to get into legal and financial trouble, an operating agreement reinforces the limitation of member liability. For this reason, every single-member LLC and multi-member LLC should have an operating agreement and some banks require it. Also, an operating agreement would be the first document to review in order to try and resolve any member disputes. Subhan Law Office, LLC, offers a comprehensive, customized operating agreement with all of our online Wisconsin LLC formation packages.
Step 4 – OBTAIN A FEDERAL TAX ID OR EIN AND ALL APPLICABLE BUSINESS LICENSES, PERMITS, AND OR CERTIFICATES
A federal tax ID is like the Social Security number for your business. An LLC’s federal tax ID number is used for reporting taxes, opening a bank account, and hiring employees. It is also called an Employer Identification Number (EIN). An LLC may need to register with the Wisconsin Department of Revenue for certain types of sales and use permits and or a business tax registration certificate. Visit revenue.wi.gov to learn more. Also, depending on your type of business, you may need a license from the Wisconsin Department of Safety and Professional Services. Lastly, check with your local government agencies for more information on whether additional permits, licenses, and or certificates, may be required.