How to Start an Llc in Wisconsin in 7 Steps
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Starting a business can be an exciting and rewarding endeavor, but it can also be overwhelming and confusing. If you’re considering starting a Limited Liability Company (LLC) in Wisconsin, there are several important steps you’ll need to take to ensure that your business is set up properly and legally. In this article, we’ll outline the seven steps you’ll need to follow to start an LLC in Wisconsin.
Step 1: Choose a Name for Your LLC
Before you can start an LLC in Wisconsin, you’ll need to choose a name for your business. Your LLC’s name must be unique and distinguishable from all other businesses in the state. You can check the availability of your desired business name on the Wisconsin Department of Financial Institutions website. Once you’ve chosen a name, you’ll need to register it with the state by filing Articles of Organization.
Step 2: File Articles of Organization
To officially form your LLC in Wisconsin, you’ll need to file Articles of Organization with the Wisconsin Department of Financial Institutions. You can file online or by mail, and the filing fee is $130. In your Articles of Organization, you’ll need to include information such as your LLC’s name, address, registered agent, and purpose. Once your Articles of Organization are approved, your LLC will be officially registered with the state.
Step 3: Choose a Registered Agent
Every LLC in Wisconsin is required to have a registered agent, who is responsible for receiving legal documents on behalf of the company. Your registered agent can be an individual or a business entity, but they must have a physical address in Wisconsin where they can be reached during normal business hours. You can serve as your own registered agent, or you can hire a professional registered agent service to handle this responsibility for you.
Step 4: Create an Operating Agreement
While not required by law, it’s a good idea to create an operating agreement for your LLC. An operating agreement is a legal document that outlines the ownership and management structure of your LLC, as well as the rights and responsibilities of each member. Having an operating agreement can help prevent misunderstandings and disputes among members down the line. You can create an operating agreement yourself or hire an attorney to draft one for you.
Step 5: Obtain an Employer Identification Number (EIN)
An Employer Identification Number (EIN) is a unique nine-digit number that the Internal Revenue Service (IRS) assigns to businesses for tax purposes. You’ll need an EIN to open a business bank account, hire employees, and file taxes for your LLC. You can apply for an EIN for free on the IRS website or by mail. Once you have your EIN, be sure to keep it safe and secure, as it’s an important piece of information for your business.
Step 6: Register for State Taxes
Depending on the nature of your business, you may be required to register for certain state taxes in Wisconsin. Common taxes that LLCs must register for include sales tax, income tax, and unemployment insurance tax. You can register for state taxes online through the Wisconsin Department of Revenue website. Be sure to comply with all state tax requirements to avoid penalties and fines.
Step 7: Comply with Ongoing Requirements
Once your LLC is up and running, there are several ongoing requirements you’ll need to comply with to maintain your business’s good standing. These may include filing an annual report, paying annual fees, and keeping accurate financial records. Failure to comply with these requirements can result in penalties and your LLC being dissolved. Stay organized and keep track of all deadlines to ensure that your business remains in compliance with state regulations.
Starting an LLC in Wisconsin may seem daunting at first, but by following these seven steps, you can set up your business for success. Take the time to carefully plan and execute each step, and don’t hesitate to seek professional assistance if needed. With determination and perseverance, you can build a strong foundation for your LLC and achieve your business goals.
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