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.
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.
Other Costs
- 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
F.A.Qs
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.
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.
Maintaining an LLC in Wisconsin involves several expenses that business owners need to account for. One of the main expenses is the annual report fee that must be paid to the Wisconsin Department of Financial Institutions. This fee is required for every LLC in the state and failure to pay it can result in penalties and potential dissolution of the company.
In addition to the annual report fee, LLCs in Wisconsin are also required to pay a franchise tax. This tax is based on the company’s gross receipts and can vary depending on the size and revenue of the business. Understanding how the franchise tax is calculated and budgeting for it accordingly is essential to avoid any surprises come tax time.
Other costs that business owners should consider when maintaining an LLC in Wisconsin include fees for filing articles of organization, obtaining a federal employer identification number (EIN), and any necessary business licenses or permits. These costs can add up quickly, so it is important to research and plan for these expenses when starting an LLC.
It is also worth noting that maintaining an LLC involves ongoing administrative tasks that may require the assistance of professionals, such as accountants or attorneys. While these services can be an additional cost, they can help ensure that your business remains compliant with state regulations and laws, ultimately saving you time and money in the long run.
While the cost of maintaining an LLC in Wisconsin may seem daunting, it is important to remember the benefits that come with operating under this business structure. By setting up an LLC, business owners can protect their personal assets from the liabilities of the business, maintain a professional image, and take advantage of potential tax benefits.
Overall, understanding and budgeting for the cost of maintaining an LLC in Wisconsin is essential for the long-term success of your business. By researching and planning for these expenses, business owners can avoid any financial surprises and focus on growing their company. It is important to stay informed about any changes in state regulations that may impact the cost of maintaining an LLC and to seek professional advice when needed. With careful planning and budgeting, maintaining an LLC in Wisconsin can be a feasible and rewarding endeavor for aspiring entrepreneurs.
In Conclusion
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.