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.
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.
Many entrepreneurs are drawn to the idea of forming an LLC because of its flexibility and simplicity. In Wisconsin, forming an LLC involves filing Articles of Organization with the Department of Financial Institutions and paying a small fee. This initial cost is relatively inexpensive compared to other business structures, making it an attractive option for new businesses.
Once the LLC is formed, there are ongoing costs associated with maintaining it. One of the main expenses is the annual report, which is due every year by a specific deadline. Failing to file the annual report on time can result in late fees and potential penalties. Business owners must also pay an annual fee to the state for maintaining the LLC’s status, which varies depending on the size and type of the business.
In addition to state fees, there are other potential costs associated with owning an LLC in Wisconsin. For example, hiring a registered agent is a common practice for LLCs, as they are required to have a designated person or entity to receive legal documents and official correspondence on behalf of the business. Hiring a registered agent can be an added expense, but it is necessary to ensure compliance with state regulations.
Another cost to consider is professional services, such as legal or accounting assistance. While not required, seeking advice from professionals can help business owners navigate the complexities of maintaining an LLC and ensure they are compliant with all regulations. These services can be costly, but they are essential for protecting the business and its owners.
It is also important to budget for unexpected costs that may arise throughout the year. For example, if the LLC faces a lawsuit or legal dispute, legal fees can quickly add up. Having a contingency fund set aside can help business owners navigate these unexpected expenses and protect the business’s financial health.
In conclusion, maintaining an LLC in Wisconsin comes with various costs that business owners must be prepared for. From annual fees to professional services, the expenses can quickly add up. While forming an LLC offers many benefits, business owners must carefully consider the financial obligations that come with it. By understanding the costs associated with maintaining an LLC in Wisconsin, entrepreneurs can make informed decisions and ensure their business’s long-term success.
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.