Perhaps you are hoping to form an LLC in Wisconsin. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Wisconsin.
On this page, you’ll learn about the following:
Wisconsin LLC Cost of Filing
Here are the costs involved in forming an LLC in Wisconsin.
Cost of Filing Formation Certificates
The Wisconsin Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Wisconsin Department of Revenue.
Wisconsin Domestic LLC
- Online Filing costs $130
- Annual Report Fee costs $25
- Name Reservation fee costs $15
- By mail: Fill out the Application Form PDF and submit it to the following address, State of WI – Dept. of Financial Institutions, P.O. Box 93348, Milwaukee, WI 53293. costs $170
Wisconsin Foreign LLC
- Online filing costs $100
- Annual Report Fee costs $25
- Name Reservation fee costs $15
- By mail: Fill out the Application Form PDF and submit it to the following address, State of WI – Dept. of Financial Institutions, P.O. Box 93348, Milwaukee, WI 53293.
You can visit the Official Wisconsin Department of Revenue website to learn more about Business filings.
Note that filing online is ideal, not only because you need to go to the Department of Revenue office, but also it would be faster. You won’t have to wait in a queue in doing so.
Wisconsin LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Wisconsin, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Wisconsin Department of Revenue for regulatory boards or agencies requiring licensing.
Wisconsin LLC Taxes to Be Paid
The business LLCs in the State are subject to different tax filing obligations. Though the taxes may vary among cities and counties.
Wisconsin State Income Tax
This is the State Tax levied on any income you pay to yourself. The tax rate varies between 3.54% to 7.65%, depending on the total amount of taxable income.
Wisconsin Sales tax
The standard rate of sales tax applicable is at the rate of 5.00% and the rate can go higher up to 5.6% after the addition of local county tax.
Wisconsin Federal Self-Employment tax
Any profit that Wisconsin LLC Business members draw out from the business is liable to pay self-employment tax. The standard tax rate is 15.3%.
Employer Payroll Tax Withholding
If you hire employees in Wisconsin, you must withhold payroll tax from their salaries. The standard rate of withholding is 7.65% of the taxable salary of the employees.
Wisconsin Property Tax
The State imposes one of the highest property taxes in the country. The State’s average property tax is 1.68% which generally applies to furnishings and equipment owned by businesses in the State.
Cost Comparison Among States
Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to Wisconsin, read the table below:
|State||Filing Fee||Annual Fee/Biennial Fee||Sales tax|
|Wisconsin LLC||$130||$25 (annual)||5.00%|
|Minnesota LLC||$135 (mail)$155 (online)||$0||6.875%|
|Michigan LLC||$50||$25 (annual)||6%|
|Illinois LLC||$150||$75 (annual)||6.25%|
|Iowa LLC||$50||$45 (Biennial)||6%|
The contributing sectors to Wisconsin’s economy are manufacturing, agriculture, and health care. Other sectors include tourism and information technology. The State falls in the higher income states in the United States.
- Wisconsin Name Reservation: $15 for filing by mail
- Doing Business As (DBA): $15 for online filling
- Certified Document Copies: $10
- Certified of Good Standing: $10
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Wisconsin LLC: $20
How Much Does It Cost to Maintain an LLC in Wisconsin
To maintain an LLC in Wisconsin you will need to pay an annual fee of $25 along with state income tax at 3.54% to 7.65%, sales & use tax at 5%, and federal taxes.
When deciding to start a business, entrepreneurs must consider a wide range of factors before taking the leap. Among the many questions to answer, one crucial aspect that often goes overlooked is the cost of maintaining an LLC in Wisconsin.
An LLC, or Limited Liability Company, is a popular business structure that grants its owners liability protection, flexibility in terms of taxation, and ease of management compared to other business structures. However, running an LLC requires various fees and compliance obligations that every business owner must be aware of.
First and foremost, LLC owners in Wisconsin must register their businesses with the Wisconsin Department of Financial Institutions (DFI), which requires a one-time fee of $130. Additionally, LLCs must appoint registered agents in the state to receive legal notices and other official correspondences on behalf of the company, which can add costs ranging from $50-$300 per year.
Another necessary expense is the annual report filing fee, which is compulsory for all LLCs in Wisconsin. Failure to complete the annual report may result in the revocation of the LLC’s Certificate of Organization. The annual report filing costs $25 for online filings, while mailed in returns can add an extra $50 to the fee.
Other expenses include income taxes- Wisconson’s LLC income tax top rate is 7.9%- and federal taxes. If you have employees, you need to enroll for federal unemployment taxes. Woking with general accountants,enrolled agents, and experienced attorneys can provide support but also need payments. Published copies may be made necessary too though not compulsory; Purchase of extra office goods such as equipment and several more items.
Outside of mandatory legal proceedings, LLC in Wisconsin must also maintain accurate financial records, maintain compliance with local and federal laws, and provide annual proofs of compliance. High-quality professionalism often costs proportionally high.
Moreover, Location also largely matters-environmental control liscences incorporation certificates, patent certificates and many more the payment methods and charges costs may something different from an overseas coporate/guru of the business coming up.
Though they act independently of their owners and have limited liabilities and obligations, running an LLC can rack up certain substantial costs that must be addressed periodically.
Intending LLC owners, therefore, to ensure their LLC are legit and minimize any penalty incursions needs to factor these expenses when estimating the total cost of protection against liabilities afforded by LLC.
In conclusion, making and running an LLC has tangible benefits, although a higher cost might come with sustaining it. However, following the reasoning that goes into the maintaining of an LLC could have acute restrictions and costs that can impede on the business owner’s fixity. All in all, embracing the best business strategies for the first three and subsequent years of business set up, LLC businesses can bring substantial profits even in the farmost investment, provided the strategized limitations and social control principles are well implemented whilst eliminating unnecessary losses and foregoing inappropriate amoral norms.
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
The cost of Wisconsin is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.