How to Start Your Own LLC in Wisconsin

1. Choose Your Wisconsin LLC Name

Selecting a business name is more than a creative task—it's the foundation of your brand identity. Your name should be unique, memorable, and clearly reflect your business's purpose. Start by clarifying your business concept and consulting trusted colleagues or mentors for feedback. A web search is essential to see if the name is already in use or if similar businesses could create confusion. Online business name generators can help spark ideas, but they should complement, not replace, your own creativity.

In Wisconsin, LLC names must include "Limited Liability Company" or one of its abbreviations (LLC or L.L.C.) and cannot contain terms that might suggest affiliation with a government agency. Words like "bank," "insurance," or "university" require prior state approval, and your name must be distinguishable from all existing Wisconsin business entities.

You should also verify the name nationally through the U.S. Patent and Trademark Office to avoid infringing on trademarks. Once you've chosen a name, consider reserving it with the Wisconsin Department of Financial Institutions (DFI). Name reservations are submitted via a paper form with a $15 fee, and they hold your chosen name for 120 days. Expedited processing is available for an additional $25.

Doing Business As (DBA)

If you plan to operate under a different name than your LLC, you'll need to register a "trade name" in Wisconsin. This allows you to run multiple product lines under the same LLC or open bank accounts in the trade name. The trade name registration is completed through the DFI online account system, with a filing fee of $15. Approved trade names are valid for ten years.

2. Appoint a Registered Agent

Wisconsin law requires LLCs to designate a registered agent to receive official notices, including legal, tax, or other government correspondence. This agent can be an individual, including a member of the LLC, or a professional service, but they must meet these requirements:

• Be at least 18 years old
• Have a physical address in Wisconsin (PO boxes are not allowed)
• Be available during regular business hours
• Be authorized to operate in Wisconsin if acting as a business entity

While you can serve as your own registered agent, many business owners hire professional services to ensure compliance and convenience, freeing them to focus on operations rather than paperwork.

3. Decide on Your LLC Management Structure

Wisconsin allows LLCs to be either member-managed or manager-managed. In a member-managed LLC, all members participate in running the business. In a manager-managed LLC, designated managers—who may or may not be members—oversee operations. This structure is useful for LLCs with multiple members, some of whom want to remain passive investors.

Member-managed structures are common for small businesses due to simplicity and lower management costs. If your articles of organization do not specify, Wisconsin defaults to a member-managed structure.

4. File Articles of Organization

To officially form your LLC, you must file Articles of Organization with the Wisconsin Department of Financial Institutions. This can be done online or by mail.

The filing requires:

• Your LLC's legal name
• Registered agent's name and address
• Names and addresses of members and/or managers
• Organizer's name and contact information

Once submitted, online filings cost $130, while paper filings cost $170. Processing typically takes five to seven business days. Upon approval, your LLC is officially recognized by the state.

Contact:
Wisconsin Department of Financial Institutions
4822 Madison Yards Way, North Tower, Madison, WI 53705
Phone: (608) 261-9555

5. Create an Operating Agreement

An operating agreement is a private document that outlines ownership, management, and member responsibilities. While not required in Wisconsin, it is highly recommended because it provides legal clarity, formalizes internal procedures, and helps prevent disputes.

Key elements include:

• LLC's name and principal business address
• Duration of the LLC
• Registered agent information
• Member and manager roles and voting rights
• Distribution of profits and losses
• Rules for adding or removing members
• Dispute resolution and amendment procedures
• Recordkeeping and internal communications

Templates are available online, but having an attorney review or draft your agreement ensures legal robustness.

6. Obtain an Employer Identification Number (EIN)

Most LLCs need an EIN from the IRS for tax purposes, especially those with multiple members or employees. The EIN identifies your business for federal taxes and banking. You can apply online through the IRS website. The application must include the Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) of the "responsible party," who controls or manages the LLC.

7. Acquire Licenses and Permits

The licenses you need depend on your industry and business activities. Wisconsin does not have a general business license, but federal, state, and local permits may still be required.

Some common examples include:

• Professional licenses for construction, plumbing, electrical work, childcare, healthcare, and more
• Health permits for food and beverage services
• Sales tax permit for businesses selling taxable goods or services
• Fire safety, building, zoning, or signage permits

Operating without proper licenses can result in fines or business closure, so verify requirements with the DFI, Department of Revenue, and local authorities. Consulting a business attorney or licensing service can simplify compliance.

8. Determine Your Tax Classification

By default, Wisconsin LLCs are pass-through entities, meaning profits and losses are reported on the members' personal tax returns.

Single-member LLCs are treated like sole proprietorships. Members report business income on Schedule C and pay self-employment taxes.

Multi-member LLCs are treated as partnerships by default, filing informational Form 1065, with profits or losses passing through to members' personal tax returns.

LLCs can elect corporate taxation if advantageous:

• C-Corporation: Pays corporate income tax on profits; distributions to members are taxed again on personal returns (double taxation). Members avoid self-employment taxes on dividends.
• S-Corporation: Income passes through to members, but members must take a "reasonable salary," paying payroll taxes. Remaining profits are distributed without self-employment tax, potentially saving money.

9. Additional Considerations

Business Bank Account

Open a dedicated business account to separate personal and business funds, a critical step for liability protection and proper accounting.

Business Credit Card

Helps build credit history and manage startup expenses.

Business Insurance

Protects against liability and losses. Policies may include general liability, professional liability (E&O), workers' compensation, property coverage, equipment breakdown, commercial auto, or a comprehensive business owner's policy.

Recordkeeping

Maintain copies of your Articles of Organization, operating agreement, contracts, tax filings, and other legal documents in a secure location.

Annual Reporting

Wisconsin LLCs must file an annual report during the quarter of the LLC's formation anniversary. The fee is $25 for online submissions.

Wisconsin LLC FAQs