How to Register a Business in Wisconsin

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TLDR

Wisconsin collaborates with governmental agencies, corporations, and nonprofits to boost its diverse startup community, providing access to resources, operations assistance, and networking opportunities.
Before registering your startup, it's a good idea to map out your business, including your location, your ideal customer, and your marketing and sales approach, to name a few topics. You can do this by drafting a business plan. To help guide you in preparing your business plan, you can check in with the U.S. Small Business Administration or SCORE, which focuses specifically on small businesses and startups.
You also must first determine your organization's legal entity structure. When deciding upon your startup's structure, it's a good idea to discuss your options with your accountant or attorney, as they can advise you in detail about the ownership, management, tax benefits, and drawbacks of each structure.
One of the more prevalent business types is the sole proprietorship. In addition to sole proprietorships, four other popular Wisconsin business entities include limited partnerships, limited liability partnerships, limited liability companies, and corporations.
You'll also have to choose a name in choosing your startup's structure. When picking a name for an LLC, corporation, or limited partnership, you'll need to distinguish it from other business names already registered with the state. Further, your startup's name must comply with Wisconsin's naming conventions. You can check for available names by visiting Wisconsin's corporate records search database.
Next, after choosing your startup's name, you need to identify a registered agent. A registered agent is the "person designated by the entity to receive service of process and other official communications on its behalf."
Finally, after completing the above steps, it's time to submit your formation forms to Wisconsin's Department of Financial Institutions. The State of Wisconsin provides sample forms for your use or review for new entities.
Depending upon your chosen entity for your startup, you will have your initial filing fee payment, any additional annual filings, and any taxes. For example, as stated above, you must pay a non-refundable $100 filing fee for registering a for-profit corporation and $130 for an LLC. You'll need to file annual reports for your entity as well, requiring a filing fee.
If you founded a startup in a state other than Wisconsin but want to conduct business in Wisconsin, you'll have to register your business as a foreign entity. Whether a business is a domestic or foreign entity depends upon where the startup was formed and which state governs its management and operation.

With just under 6 million citizens, Wisconsin is the 21st largest state (by population) in the U.S. With numerous outdoor activities, such as snowmobiling, hunting, and fishing, Wisconsin has a vibrant entrepreneurial spirit.

For example, Wisconsin works with governmental agencies, corporations, and nonprofits to boost its diverse startup community, providing access to resources, operations assistance, and networking opportunities. The Wisconsin Economic Development Corporation has partnered with the African-American Chamber of Commerce of Wisconsin, the Hispanic Chamber of Commerce of Wisconsin, and the First-American Capital Corporation, the financing arm of the American Indian Chamber of Commerce, with a continued focus on attracting, developing, and growing new business.

Small business numbers are equally impressive. In 2021, Wisconsin was home to just over 460,000 small businesses, employing 1.3 million people. Small businesses make up 99.4% of all Wisconsin businesses. Top small business industries include professional, scientific, and technical services; construction; retail trade; health care and social assistance; accommodation and food services; and manufacturing.

As you're launching your startup and exploring where to locate your new business, this article will explore registering your business in Wisconsin.

When Do You Need to Register a Business in Wisconsin?

When you register a business in Wisconsin, you'll need to satisfy several requirements, allowing you to start your company legally and compliantly. Before registering, though, it's a good idea to map out your business, including your location, your ideal customer, and your marketing and sales approach, to name a few topics. You can do this by drafting a business plan.

To help guide you in drafting your business plan, you can check in with the U.S. Small Business Administration or SCORE, which focuses specifically on small businesses and startups. Wisconsin's Department of Development also offers numerous resources for Wisconsin founders when starting a new business, in addition to resources specifically for entrepreneurs. Once you've identified some of the basics about your startup's operation, it is time to register your business.

Below, we've broken the Wisconsin requirements into an easy step-by-step process.

Determine Your Business's Entity Structure

Before registering your startup in Wisconsin, you must first determine your organization's legal entity structure. When deciding upon your startup's structure, it's a good idea to discuss your options with your accountant or attorney, as they can advise you in detail about the ownership, management, tax benefits, and drawbacks of each structure.

In Wisconsin, you can choose from several different types of business structures. One of the more prevalent business types is the sole proprietorship. If you operate as a sole proprietorship, you do not have to formally file your startup in Wisconsin. Instead, any profits or losses are reported on your personal tax return.

In addition to sole proprietorships, four other popular Wisconsin business entities include:

Limited partnership
Limited liability partnership
Limited liability company
Corporation

For example, a limited liability company is an entity that has "members (similar to a partnership) who may directly manage the company or who may vest management in one or more managers. It combines the features of both a partnership and a corporation."

A limited partnership in Wisconsin has "one or more general partners and one or more limited partners. Management is exercised by the general partners, with the limited partners as passive investors." A business corporation is "a general-purpose entity in which management is exercised by a board of directors elected by shareholders."

Founders must register their startups (typically online) for these types of entities with Wisconsin's Department of Workforce Development.

Choose Your Business's Name

You'll also have to choose a name in choosing your startup's structure. When picking a name for an LLC, corporation, or limited partnership, you'll need to distinguish it from other business names already registered with the state. Further, your startup's name must comply with Wisconsin's naming conventions. You can check for available names by visiting Wisconsin's corporate records search database.

Reserved Names

Suppose you're not ready to register your business in Wisconsin, but you want to preserve your startup's name. In this case, you can reserve a startup name, preventing another new business from taking the name. You can book your startup's name for 120 days. After that, you'll need to pay a $15 fee for new filings.

DBA or Assumed Names

Note that reserving a startup name is not the same as registering a "doing business as" or DBA name. DBA names are also called fictitious or assumed names. You'll need to file an Adoption of Fictitious Name form indicating the fictitious name for corporations, limited partnerships, and limited liability companies.

Suppose the founder chooses a fictitious name rather than their personal name for sole proprietorships. In that case, the founder will need to file that assumed name with Wisconsin's Department of Financial Institutions, even though the entity itself does not need to be registered. Further, founders with sole proprietorships must check with local and municipal business license offices before conducting business.

Identify Your Registered Agent

Next, after choosing your startup's name, you need to identify a registered agent. A registered agent is the "person designated by the entity to receive service of process and other official communications on its behalf." The registered agent's business office is called the "registered office."

Submit Your Formation Forms

Finally, after completing the above steps, it's time to submit your formation forms to Wisconsin's Department of Financial Institutions. The State of Wisconsin provides sample forms for your use or review for new entities.

For example, if you choose to register as a for-profit corporation, you will file an Articles of Incorporation application along with a non-refundable $100 filing fee. For Wisconsin startups registering as an LLC, you will file Articles of Organization application, also along with a non-refundable $130 filing fee.

How Much Does It Cost to Register a Business in Wisconsin?

Depending upon your chosen entity for your startup, you will have your initial filing fee payment, any additional annual filings, and any taxes. For example, as stated above, you must pay a non-refundable $100 filing fee for registering a for-profit corporation and $130 for an LLC. You'll need to file annual reports for your entity as well, requiring a filing fee.

Additionally, most Wisconsin startups must apply for specific business licenses or permits through Wisconsin's Department of Revenue and local municipalities, which all may have separate filing fees. To help founders complete all business filings and registrations, Wisconsin has created an online filing system called One-Stop Business Registration.

How to Register a Business in Wisconsin that Started in Another State

If you founded a startup in a state other than Wisconsin but want to conduct business in Wisconsin, you'll have to register your business as a foreign entity. Whether a business is a domestic or foreign entity depends upon where the startup was formed and which state governs its management and operation.

For example, a registered startup in Wisconsin is a "domestic" startup. However, if you have a Delaware registered startup but want to conduct business in Wisconsin, your business would be considered a "foreign" startup.

Let's look at an example. Suppose you have a Delaware corporation, but you'd like to conduct business in Wisconsin. Then, you can complete a Certificate of Authority application for your foreign corporation or a Certificate of Registration application for your foreign LLC, along with the applicable filing fee.

The Benefits of Registering a Business in Wisconsin

There are many benefits associated with registering your startup in Wisconsin. Let's look at some top ones:

Affordable living
An entrepreneurial spirit
Numerous incentives for new businesses
Tax credits for Wisconsin Enterprise Zones and Development Opportunity Zone
High quality of life
Good healthcare
Low crime rates
Sports, sports, sports
Lots of cheese and beer

The Limitations Associated with Registering a Business in Wisconsin

There aren't that many limitations associated with registering your startup in Wisconsin. However, here are a couple of points to keep in mind:

Cold winters (and we mean cold)
Lack of diversity
High state and local taxes
Poor roads

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If you're looking for help registering your Utah startup, we can get your documentation ready, overall shepherding this process to ensure it's done right. Get in touch with us.

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