Starting an LLC in Wisconsin: A Step-by-Step Guide

Setting up a Limited Liability Company (LLC) in Wisconsin can be a straightforward process if you follow the necessary steps. An LLC provides personal liability protection for its owners, known as members, and can be used for a variety of business purposes, from small startups to large corporations.

To start an LLC in Wisconsin, you'll need to file the necessary paperwork with the Wisconsin Department of Financial Institutions (DFI). Here's a step-by-step guide to help you get started:

Step 1: Choose a Business Name

The first step in setting up an LLC in Wisconsin is to choose a unique business name that complies with the state's naming requirements. Your business name must include the words "Limited Liability Company" or the abbreviation "LLC" and must be distinguishable from other business names on file with the Wisconsin DFI.

You can search the Wisconsin DFI's database to ensure your desired business name is available. If the name is available, you can reserve it for 120 days by filing a Name Reservation Application with the DFI.

Step 2: File Articles of Organization

Once you've chosen a business name, you'll need to file Articles of Organization with the Wisconsin DFI. The Articles of Organization is the document that officially forms your LLC and must include the following information:

• Business name and address
• Business purpose
• Name and address of each member
• Management structure (member-managed or manager-managed)
• Effective date of the LLC

You can file the Articles of Organization online or by mail with the Wisconsin DFI. The filing fee is currently $130.

Step 3: Create an Operating Agreement

An Operating Agreement is a document that outlines the ownership and operating structure of your LLC. It's not required by the state, but it's highly recommended to avoid potential conflicts and ensure that all members are on the same page.

Your Operating Agreement should include the following information:

• Business purpose and goals
• Ownership structure and percentage of ownership
• Management structure and decision-making process
• Profit and loss distribution
• Member responsibilities and obligations

Step 4: Obtain an EIN

An Employer Identification Number (EIN) is a unique nine-digit number assigned to your LLC by the Internal Revenue Service (IRS). You'll need an EIN to open a business bank account, file taxes, and hire employees.

You can apply for an EIN online through the IRS website. The application process is free and takes only a few minutes to complete.

Step 5: Obtain Licenses and Permits

Depending on the type of business you're operating, you may need to obtain licenses and permits from the state or local government. For example, if you're operating a food business, you'll need to obtain a food service permit from the Wisconsin Department of Health Services.

Check with the Wisconsin DFI and your local government to determine what licenses and permits are required for your business.

Step 6: Open a Business Bank Account

Once you've obtained an EIN and any necessary licenses and permits, you'll need to open a business bank account in the name of your LLC. This will help you keep your personal and business finances separate and make it easier to manage your business's finances.

Be sure to choose a bank that offers business banking services and has a physical location in Wisconsin.

Step 7: Obtain Business Insurance

Business insurance can help protect your LLC from financial losses in the event of a lawsuit or other business-related risk. You may want to consider obtaining the following types of insurance:

• Liability insurance
• Property insurance
• Workers' compensation insurance

Check with insurance providers to determine what types of insurance are available and what the costs are.

Conclusion

Starting an LLC in Wisconsin can be a complex process, but by following these steps, you can ensure that your business is properly formed and compliant with state regulations. Remember to choose a unique business name, file Articles of Organization, create an Operating Agreement, obtain an EIN, obtain licenses and permits, open a business bank account, and obtain business insurance to protect your business.