Setting up an LLC in Wisconsin can be a difficult and time-consuming process. With this resource, we provide you with the information you need to know about taxes, fees, and other requirements when establishing and running an LLC in Wisconsin.
Applying for an EIN (Employer Identification Number).
When creating an LLC in Wisconsin, you must apply for and obtain an Employer Identification Number (EIN) from the Internal Revenue Service. You may need to provide an EIN when filing your business taxes in Wisconsin or when opening a business bank account. To obtain an EIN, submit an application online on the IRS website and make sure to have documents ready that verify the identity of all owners associated with the LLC.
To apply for an EIN, you must be the member or responsible party of the LLC. Before submitting your application, gather the following necessary documents: a copy of the Articles of Organization for the LLC, Entrepreneur’s Identification Number (EIN) if applicable, Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for all owner’s associated with the LLC, organization address and a list of either six or seven GIS coding questions based on ownership information. Once you have these documents in order and ready to go, visit the IRS website and submit your completed application online.
Once your application is reviewed and confirmed, the IRS will provide you with an EIN for current legal purposes. Your EIN, or Employer Identification Number, will be used to open financial accounts, report federal and state taxes, file unemployment taxes, and interact with government agencies in the state of Wisconsin. Make sure that you keep your EIN secure and use it only when filing documents relevant to your LLC.
To apply for an EIN, you’ll first need to fill out Form SS-4. This form can be completed online, by mail, or via fax. You’ll also need to provide your Wisconsin LLC details such as the date of formation, the mailing address of the business, and the name of a contact person who must have signing power on behalf of your LLC. Once you submit your application, expect to receive your assigned EIN from the IRS within 15 business days. If needed, you may also be able to apply for Expedited Processing Service which is available for an additional fee and allows you to obtain your EIN within 24 hours.
After you obtain your EIN number, you’ll need to provide it when completing other business documents and applications, managing payroll taxes and banking transactions, as well as filing taxes. You’ll also need to keep your EIN in good standing with the IRS by filing an income tax return or timely extension each year. To make sure that you stay compliant, paying close attention to IRS regulations and deadlines is essential. Additionally, an accounting professional can help ensure that all of your financial obligations are met in a timely manner.
Obtaining an EIN is a critical step when making your Wisconsin-based LLC official. In order to complete the easiest and quickest application process, you’ll need to provide your name, social security number or tax identification number, and LLC operating details before submitting your application. Once you have all of the necessary information together, visit irs.gov/ein and follow the steps of the simple online form. The entire process should only take about 15 minutes and cost around $50. After you’ve received confirmation from the IRS that your EIN has been approved, you can officially begin doing business under your new LLC name.
Wisconsin LLC Filing Fees.
In addition to the EIN, there are several fees you need to be aware of when setting up an LLC in Wisconsin. When filing your Articles of Organization with the Wisconsin Department of Financial Institutions, you’ll need to pay a filing fee. The state also collects an Annual Report Processing Fee on all LLCs registered in Wisconsin every year. Additionally, since all LLCs must register for sales and/or use tax purposes, there is also a one-time Sales/Use Tax Registration Fee that must be paid. Make sure you budget accordingly for all these fees when planning to set up an LLC in Wisconsin.
Filing fees are charged based on the total amount of capital the LLC will invest in the state. For most LLCs, the filing fee is $130, though this could be lower or higher depending on how much investment you plan to make. The Annual Report Processing Fee costs $25 and must be paid each year by June 1st by all LLCs with current or past registration as of March 31st. Finally, the one-time Sales/Use Tax Registration Fee cost $20 and is required of all LLCs regardless of actual sales activities within Wisconsin. All these fees must be paid when filing your Articles of Organization with the state.
To make sure your LLC is in good standing, filings must be made with the Wisconsin Department of Financial Institutions Division of Corporate and Consumer Services. Each year, you must also file an Annual Report to keep your LLC active. If you do not timely submit this filing or it is incomplete, the state may revoke your status and you will be required to pay a reinstatement fee. Additionally, if you want to conduct any sales or purchases in Wisconsin you need to register for a Sales/Use Tax Account. This can be done online through the Seller Permit Application on the Wisconsin Department of Revenue website.
For LLCs with a principal office in Wisconsin, the filing fee for formation and registration is $170.00, plus $5.00 for each member shown on the Articles of Organization. In addition, when applying online through the Business Organizations Section of the Department of Financial Institutions website you need to pay a convenience fee of $2.50. To prevent your LLC from being revoked there is a $25 Annual Report filing fee due on or before April 15th of every year. If you are late, you may have to pay an additional penalty. The Sales/Use tax permit registration requires an application fee of $20 and must be renewed annually for no charge to keep your status active.
For all other filing fees, check out the Wisconsin Department of Financial Institutions website in detail. Certain LLCs may need to pay additional filing fees like Occupational Licenses and Franchise Tax. They may also need to renew their business registration every two years for an $8 fee and may face fines if they are not compliant with existing state laws or do not keep their annual registrations current. Make sure you understand all of the requirements for setting up and maintaining your Wisconsin LLC before submitting your documents to the DFI.
Wisconsin Sales and Use Tax.
Registering your LLC for sales and use tax will enable you to legally collect and remit sales taxes. Wisconsin requires all LLCs doing business in the state to register for Wisconsin Sales Tax, though certain businesses may also need to register for Use Tax as well. Use tax is collected on items purchased in a jurisdiction where the seller does not charge sales tax (such as online purchases). Additionally, there may be additional requirements depending on the nature of your business and the products or services you provide. Make sure to do your research prior to registering.
All LLCs registered in Wisconsin must go through the sales tax permitting process. You can register for tax permits online through the Wisconsin Department of Revenue e-file system or by submitting a paper application. When registering, you’ll need to provide information on your business, products or services offered, type of ownership and estimated gross revenue. Once you’ve completed this process and paid any applicable fees, you can begin collecting and remitting sales taxes as required.
When filing to become an LLC in Wisconsin, it’s important to make sure you are properly registered for any and all taxes you may owe. The most common tax imposed is the sales tax because LLCs must collect this from customers. In addition to the levy for sales and use taxes, businesses may be required to remit other taxes such as cigarette or motor fuels taxes. Although your LLC may not initially owe these taxes, registration will ensure that they can file returns as needed and avoid any late fees or penalties should business activities require them in the future.
LLC businesses in Wisconsin are responsible for the collection and payment of sales or use taxes on items sold, leased or delivered to purchasers in the state. You may need to register your LLC with the Wisconsin Department of Revenue if you are selling taxable items or services within Wisconsin, or you have customers located outside and they make purchases from you through delivery into the state. The sales and use tax rate varies by county in Wisconsin, so it’s important to know what rates apply to your business. Once registered, you will be expected to file a sales and use tax return each quarter.
If you plan to have taxable items, then it’s important for your Wisconsin LLC to be familiar with the state’s sales and use tax laws. You must collect sales taxes from customers located in the state, and in most cases, these taxes should be sent directly to the Wisconsin Department of Revenue. It is important to track any purchases made by consumers using out-of-state delivery methods as well as those individuals who are exempt from paying taxes, such as government organizations or churches. All LLC businesses that sell taxable goods and services within Wisconsin need to obtain a seller’s permit before they can begin collecting taxes. Once registered, you will be able to remit all collected amounts to the Wisconsin Department of Revenue at least once every quarter.
Federal Income Tax Withholding Requirements.
Understand the federal income tax withholding requirements for setting up a Wisconsin LLC. You must file Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, to report annual FUTA taxes you imposed on wages your employees earned. As an employer, you must also collect and deposit employee income taxes paid through the Federal Income Tax Withholding program by withdrawing the correct amount from each employee’s paycheck. Failure to withhold and pay over-employee income taxes can result in hefty fines and penalties. Therefore, it is important that you understand the guidelines set forth by the IRS when selecting a payroll service provider or processing payments manually.
You must complete the IRS Form 941, Employer’s Quarterly Federal Tax Return, each quarter to report federal income tax withholding. Additionally, you must submit W-2 forms to your employees at the end of the year for filing their taxes. To ensure that you are in compliance with both state and federal payroll laws, it is recommended that you seek professional advice from an accountant or a tax attorney. Knowing your legal obligations is key to successfully running an LLC in Wisconsin and avoiding penalties from the IRS.
Wisconsin LLCs must also register with the state to make sure that their business activities are legitimate and comply with applicable statutes. The state requires LLCs to file an application for registration by mail or online with the Division of Corporations, Business & Charitable Organizations. In order to submit your LLC application, you must provide certain founding documents such as Articles of Organization, a Registered Agent’s Name and Address Form, and a Statement of Organizer form. Upon successful registration, your Wisconsin LLC is permitted to do business within the state.
Once established, a Wisconsin LLC must also register with the Internal Revenue Service (IRS) in order to obtain a federal tax identification number and mandate any federal income tax withholding requirements. Any LLC member who is an employee and working for the business will need to fill out a W-4 form. Nonresident members and non-employee members do not have to fill out the form – but their share of the business’s annual income should be reported on their individual income tax return. In addition, all banks and other financial institutions where your Wisconsin LLC makes any deposits must also be informed that it is an LLC. This can be done by submitting IRS Form SS-4 along with an EIN confirmation letter or a copy of your Articles of Organization. Complying with these filing requirements will ensure that you can legally operate your business in Wisconsin.
Ongoing LLC Reports, Filings & Fees in Wisconsin.
Your LLC is required to file a biennial statement, which costs $25. Failure to submit the statement will result in an automatic dissolution or revocation of the LLC’s registration with the state. The LLC must also pay annual franchise taxes to the state, and any additional business license fees that may be applicable to your LLC based on where it operates primarily. It is important to research any local ordinances related to operating an LLC in the area where you plan to open the company. Be aware that Wisconsin will also charge sales and use tax on goods sold within its borders.
In addition to the biennial report and franchise fees, Wisconsin LLC must also stay up-to-date on applicable laws and regulations for their area. This includes staying compliant with all state licensing requirements and any industry-specific rules that may apply. A law attorney or professional business consultant can provide more information about changes in the Wisconsin legal and tax systems that may affect your LLC. Knowing these regulations can help you ensure that your LLC remains compliant and profitable in the future so you can focus on growing your business.
When forming an LLC in Wisconsin, a signed statement of formation is required to be filed with the state. This document should include information such as the name and address of the LLC, the person who will serve as a registered agent, and more. Once you have established your Wisconsin LLC and filed your initial paperwork, it’s important to keep up with any filing or fee requirements that may arise during the life of your company. Additionally, if you are operating a business within Wisconsin for some period of time-or are looking to move your LLC into Wisconsin now-you must obtain applicable licenses or permits to do so.
While most LLC tasks can be handled (and paid for) online, filing other forms may require you to print and mail documents in person or via USPS. Paying these fees on time is important for keeping your business in good standing with the state of Wisconsin and federal governments. You should also take steps to ensure that you’re following all regulations and laws related to LLCs within Wisconsin. Required filings are generally determined by whether your business has made any changes throughout its life, such as changing its name or moving to a new location. If any such changes have occurred, you’ll need to update your official records with the Wisconsin Department of Financial Institutions accordingly.