A limited liability company (LLC) is one of a number of different business structures that can be used to create a company. LLCs offer company owners, known as members, the same protections from liability as a corporation. However, the profits of an LLC are only taxed once through the owner’s taxes, whereas corporations have to pay corporate taxes and owners have to pay income tax on the corporation’s profits.
When forming your company into a legal entity, you should know what kind of requirements you must meet. In Wisconsin, these requirements are set by the Wisconsin Department of Financial Institutions. One of the main requirements is having a name that is not in use elsewhere in the state. Another requirement that you will have to do is choose a registered agent who can receive official correspondence and legal documents on behalf of the LLC. You will also need to decide if members, who are the owners, or managers will be running the LLC. Finally, and most importantly, you will be required to file paperwork.
If you are planning on establishing a domestic LLC, which is one that is based in Wisconsin, you will need to file Articles of Organization, which you can file online or by mail. When filing Articles of Organization, you will have to include the name of the company, how the company will be run, and the addresses and names of the registered agent and the LLC’s organizers.
Anyone wishing to register a company that is established outside of the state, known as a foreign LLC, will need to fill out an Application of Certificate of Registration. Unlike the Articles of Organization, the application can only be filed by mailing in the form. While the application requires the same information as the Articles of Organization, it will also ask if there are any other names for the LLC outside of the state and when the LLC was created. You may also have to fill out a supplemental form and pay a fine if the LLC conducted business in Wisconsin before getting the Certificate of Registration.
Wisconsin offers many different tax incentives in the form of tax credits and exemptions for LLCs, such as credits for qualified research and early stage investments for qualified new businesses. The state is also in the process of developing a court that would deal exclusively with business matters, which would make for a more business-friendly court system.
LLCs have to pay both a franchise tax and an income tax annually. The tax rate in Wisconsin is 7.9% for both the franchise tax and the income tax. Also, you will need to file an annual report during the financial quarter of your LLC’s registration anniversary.
A Wisconsin business lawyer can be essential when setting up your LLC. Knowing that you have an expert giving you advice on setting up your LLC can be a relief because you are less likely to miss important documents or requirements. Find a lawyer today that can help you setup your business.