How Much Does an LLC Cost in Wisconsin?

How much do LLC articles of organization cost in Wisconsin?

One of the first fees you’ll encounter when you establish your LLC business is the Wisconsin filing fee that accompanies your articles of organization. Since there is no general Wisconsin LLC filing fee and state law does not require a Wisconsin LLC operating agreement, this document will serve as the organizational foundation of your business.

Your articles of organization outline key information about your LLC, including your business’ name and address, the names and addresses of the LLC’s members and registered agent, and an overview of the structure of the business entity

The document outlines key information about your LLC, including your business’ name and address, the names and addresses of the LLC’s members and registered agent, and an overview of the structure of the business entity. Developing your articles of organization is a relatively simple process, but it’s a critical step in your business’ development. Filing articles of organization for your Wisconsin LLC will allow you to set up a federal employer identification number, a business bank account, insurance coverage, and more.

The Wisconsin Department of Financial Institutions (DFI) offers a discounted fee schedule for online filing, with domestic LLCs paying $130 to file articles online or $170 by mail or in person. Foreign business entities must pay a $100 fee to file articles of organization in Wisconsin, regardless of how they choose to file.

How much is the Wisconsin annual report fee?

An LLC operating in Wisconsin must file an annual report that outlines the most up-to-date version of the information in its articles of organization. State statute requires the following information be submitted annually to the Wisconsin DFI:

• The name of the LLC
• The name and address of the LLC’s registered agent
• The address of the LLC’s principal office
• The name and business address of each of the company’s managers
• The name and address of each member of the LLC
• A description of the nature of the LLC’s business 

The filing fee for an annual report for a domestic Wisconsin LLC is $25 if filed online or $40 by mail or in person. Foreign LLCs operating in Wisconsin must pay an $80 filing fee for their annual reports.

How much does a registered agent cost in Wisconsin?

A registered agent serves as your LLC’s point of contact for legal matters, and each LLC in Wisconsin must designate a person or company to serve as its registered agent. 

Choosing the right registered agent requires careful consideration. The owner of the LLC can serve as their own registered agent, as can another member of a multi member LLC, an employee, or a third party. Each of these options comes with its own advantages and disadvantages.

There is no specific government fee associated with designating a registered agent in Wisconsin, but most registered agent services will charge an LLC an annual fee for their services. These costs typically start around $40-$50 per year and can grow significantly higher depending on the needs of your business and the services offered by the registered agent.

If your registered agent changes, you will need to update your annual report with the new registered agent’s information. In cases where the information must be updated more promptly, you may file a Statement of Change for Registered Agent and/or Registered Office with the Wisconsin state government's financial institutions division. This form costs $25 to file.

How much does a Wisconsin seller’s permit cost?

A seller’s permit is required for any individual or business in Wisconsin selling taxable retail products. The permit is registered and paid for as part of Wisconsin’s Business Tax Registration (BTR) and costs $20 for the initial permit. A $10 renewal fee is then charged every two years.

Upon paying the registration fee, your LLC will receive a BTR Certificate that lists permits and certifications held by the business. A seller’s permit must be posted in the business once it is approved. 

How much do local business licenses cost in Wisconsin?

Wisconsin does not have a statewide business license—these types of licenses are typically handled by municipalities, and the associated costs and requirements vary from place to place. 

Depending on your location and the nature of your business, you may also be required to secure industry-specific licenses or certifications to operate in Wisconsin. These additional licenses are typically issued to business entities that require some type of specialized skill or training to operate safely and effectively, like electricians, plumbers, or pharmacists.

For the best information about license requirements for your particular business, contact your local small business development center office.

How much does business insurance cost in Wisconsin?

No matter what business you’re in, it’s critical to find the right type of business insurance to suit your needs. The type of insurance and associated costs can vary widely depending on the size and nature of your business. These are some of the most common forms of business insurance. 

• General liability insurance: General liability insurance is a necessity for all businesses and covers you against financial loss in the case of injury, property damage, lawsuits, and a long list of other potential problems.
• Product liability insurance: This type of insurance is used in cases where a product or defect injures a consumer or member of the public.
• Professional liability insurance: Sometimes known as negligence or malpractice insurance, this coverage protects your Wisconsin business in the case of an error committed by one of your business’ service providers.
• Commercial property insurance: This form of insurance protects your company property from a variety of harm, including fire, storms, and vandalism.

For more information, check the Wisconsin Commissioner of Insurance’s full list of business insurance requirements.

What is the Wisconsin franchise tax?

A franchise tax, sometimes referred to as a privilege tax, is a tax a business entity must pay in order to conduct business within the state levying the tax. In Wisconsin, the franchise tax applies to all domestic business entities with nonexempt income, which includes most, if not all, LLCs.

Wisconsin’s franchise tax is calculated using a 7.9 percent tax rate based on your company’s net income for the year. In certain instances, your business may be required to pay a corporate income tax instead of a franchise tax. These two taxes differ slightly in their application but are assessed at the same tax rate and based on the same income figures.

The Wisconsin Department of Revenue has an extensive guide to Wisconsin LLC taxes if you need more information about your business’ specific tax liabilities.

Other Wisconsin fees and business costs you might encounter

Certain industries in Wisconsin are subject to additional fees, taxes, and licensing requirements. There are several industry-specific Wisconsin LLC taxes and fees outlined by the Wisconsin DOR, ranging from dry cleaning fees to limo rental fees.

Once you settle on a name for your LLC, you’ll also need to pay a $15 fee to reserve the name. This fee holds the name for around four months in order to give you time to complete the other requirements to form your business entity.

What is the total cost to start an LLC in Wisconsin?

All told, the startup costs associated with a Wisconsin LLC will likely start somewhere around $210 for the smallest operations and can be significantly higher based on things like specialized licenses and insurance plans.

Not including your business’ tax obligations and insurance plans, you can expect to spend somewhere around $100 in annual fees to keep your LLC running, including registered agent fees, annual reports, and business tax registration fees.

If you want to simplify the process of starting your business, LegalZoom’s LLC formation service provides you with all the tools you need to get started in one place, including personalized advice from an experienced attorney.

Wisconsin LLC cost FAQs

Does it cost more to register a foreign LLC in Wisconsin?

Registering a foreign LLC in Wisconsin is actually initially cheaper than registering a domestic LLC, with foreign entities paying only $100 compared to the $130 fee to file articles of organization for a domestic entity.

Over time, though, a foreign entity will pay more in the form of higher fees for annual reports—the fee for a foreign entity’s annual report is more than three times the fee for a domestic entity.

Can you get grants to help cover the cost of starting a business in Wisconsin?

Wisconsin’s Department of Workforce Development offers a broad range of grants and startup resources for new and existing businesses within the state. These range from grants to help cover costs to training and education resources for business owners. 

The Wisconsin DFI has also offered a one-time waiver of LLC startup fees for student entrepreneurs since 2018.

What’s the cheapest way to start an LLC in Wisconsin?

One of the most obvious ways to keep fees low when opening a new business in Wisconsin is to file online. New business owners can save money on their filing fees for articles of organization by filing online, and annual reports are also significantly cheaper to submit electronically.

Another way to keep expenses down is to consider the scale and nature of your business as you develop your business plans. If costs are a major concern, it may not be prudent to start a business requiring a variety of different insurance plans or professional licenses and certifications. These types of businesses will inherently have higher annual overhead when it comes to state and local fees.