If you wish to start a limited liability company (LLC) in Wisconsin, there are a number of benefits that you have when compared to other states. For instance, you get to deal with a more simplified tax filing process. With much lower costs of living than most states, Wisconsin is a viable choice to start a business even when you’re an international entrepreneur.
These are some of the numerous benefits that you should consider when looking into starting a limited liability company. Yet, it’s highly advisable for you to know what the structure of this type of company entails. Moreover, to have an idea of the steps that you should take to ensure that you’ve covered everything.
If you’re searching for information on how to start your LLC in Wisconsin, this is the right place. Keep reading to find out all that you need to know about this type of legal entity.
Is an LLC Operating Agreement Required in Wisconsin?
An LLC operating agreement is not legally required in Wisconsin. However, it’s still highly advised that you should have one if you wish to form an LLC. Most importantly, if you wish to protect the operations of your legal entity. It helps you to set legible rules and clear expectations for your LLC. This is the most effective way for you to launch a credible legal entity.
Wisconsin Operating Agreement Laws
Each state has different regulations to guide the formation of your LLC. First things first, you should be familiar with what state laws govern your legal entity in Wisconsin. The operating agreement laws that regulate limited liability companies in Wisconsin are found in Chapter 183 of the 2011 Wisconsin Code. The Code sets out the following:
- The general provisions
- Relations of members and managers
- Rights and duties of members and managers
- Dissolutions, and many more.
An accurate template of your Wisconsin operating agreement should include everything that you require according to The Code.
How Much Does it Cost to Form an LLC in Wisconsin?
If you want to start an LLC in Wisconsin, you should be prepared to pay $130. This fee can be paid online. You pay it to the Wisconsin Department of Financial Institutions. This is known as filing your legal entity’s articles of organization. Apart from this standard cost fee, you’ll pay the following fees once your LLC has been established:
1. Annual Report Fee
In Wisconsin, you’re required to file an annual report for your LLC. You pay $25 at the end of the quarter of the formation of your LLC. This fee is paid online to the Wisconsin Department of Financial Institutions.
2. Registered Agent Fee
When you have a registered agent, it helps to keep your company compliant. It helps you keep up-to-date with filing your fees on time. Additionally, it helps to avoid any late fee payments by your LLC. This fee is agent dependent, however, it starts from $39 within the first year of the formation of your legal entity.
Fortunately, Wisconsin allows you to be your own agent. That means you can reduce your registered agent fees this way.
3. Foreign LLC Costs
If you’re coming from another state and wish to register your LLC in the state of Wisconsin, you need to file a Foreign Limited Liability Company Application for Certificate of Registration commonly known as Form 521. You only pay $100 to register with your foreign LLC.
4. Business Permits and Licenses
Generally, every type of business needs to follow specific guidelines to legally operate in any state. In Wisconsin, you need to find out more about what the requirements are for a local business license.
5. Other Filing Costs
If you’re forming your LLC in Wisconsin, you can pay optional fees, which include the following.
- Name reservation for $15
- Trade name fee of $15
- Certified copies of your legal entity from the Department of Financial Institutions for $10
- Certificate of good standing or status for $10
How to Form an LLC in Wisconsin?
If you’re looking to form an LLC in Wisconsin then follow the below steps to make the process quick and easy:
Step 1 – Name your LLC
Before you can register your LLC in Wisconsin, you should choose a name that meets the following:
- It has to be available for business,
- It should meet the naming requirements in Wisconsin:
- Must contain the words ‘Limited Liability Company’ or ‘Limited Liability Co.’, or end with the abbreviation ‘LLC’ or ‘L.L.C’
- It should be available to be used as a web domain.
Step 2 – Find a registered agent
Appointing a registered agent is a requirement for all LLC entities in Wisconsin. This is the main person who is responsible for everything including accepting any service process in the event that your LLC is sued. However, your agent must meet the following requirements;
- He or she must be 18 years or older
- Must reside or have a physical address in Wisconsin
- Be available to accept the service of process
Step 3 – File Articles of Organization
You should fill out the Wisconsin Form 502 online to file your articles of organization with the Department of Financial Institutions. You can pay the fee online.
Step 4 – Have an Operating Agreement
You need to have a legal document that outlines your LLC operating procedures, and its ownership. Even though this document isn’t legally required, it’s still essential for you to have an operating agreement template to reduce the risks of legal compliance issues and conflict in the future.
Step 5 – Get an Employer Identification Number (EIN)
This is an important number that allows you to open your business bank account and hire employees. It’s crucial for tax purposes. The Internal Revenue System (IRS) issues this number to you. Think of it as a Social Security Number (SSN) for your legal entity.
Step 6 – Comply with Regulatory Requirements
You should ensure that you file all your LLC taxes on time. If your business meets certain thresholds, you should pay your annual franchise fees and any additional fees.
Wisconsin LLC Operating Agreement Template
The fact is that finding a comprehensive LLC operating agreement template in Wisconsin is important. The below template should make establishing and upkeeping your LLC in Wisconsin efficient and simpler.