The LLC form of business organization has been around for quite some time, but it is still growing in popularity these days. It serves many different functions and is often used by individuals or companies in industries such as construction, technology, retail, and real estate.
To start an LLC in Wisconsin, you will need to follow certain processes to get your company off the ground. This article will provide an overview of how to start an LLC in Wisconsin and how to maintain it as you grow your business.
Creating an LLC in Wisconsin is relatively simple when compared with other states. This is because Wisconsin has created a fast and easy way for individuals or companies with similar needs to form a business entity without too much hassle. You can create your LLC by completing, signing, and returning a few forms and submitting them.
Steps to Start an LLC in Wisconsin
Step 1: Choose a Name
The first step to setting up your LLC is choosing a name. One of the most important things when naming your business is to make sure that it isn’t too similar to other entities of the same type.
Many types of names are allowed in Wisconsin, but you cannot use any that are considered reserved or prohibited. You should also make sure that your name doesn’t contain any words or abbreviations that could be confusing to the general public.
One of the best ways to make sure your name is unique is to search the internet, specifically on the Wisconsin Secretary of State’s website to make sure that no other businesses are using the name you want. If your search yields similar results, then choose a different name to register your business with.
Step 2: Choose a Registered Agent
If you choose to have an LLC in Wisconsin, you will need to have a registered agent for your business.
A registered agent is someone who has been designated as the contact for legal and tax purposes for your LLC. You can either use an individual registered agent or hire one from a company that provides them.
This person will be responsible for legal documents being properly distributed to government agencies, as well as for reaching out to the government if your business is not performing its responsibilities if needed.
Step 3: File Articles of Organisation
The articles of organization are what officially create your LLC and state the basic information about your business. You’ll need to complete this form again before submitting it to the state. The form will ask for basic information such as the name of your registered agent, your registered agent’s address as well as the type of organisation you will be in. This can include a domestic LLC, a foreign LLC, or any other type of business that you decide to register.
Once the articles of organisation are filled out, signed, and submitted, your business will be officially registered. You will receive a notification and a note from the state as to where you can find your original articles and registration.
Step 4: Draft an Operating Agreement
The state of Wisconsin does not require you to draft an operating agreement, but it is highly recommended that you do so. In addition to ensuring that your company stays true to its original purpose, this document will outline the operational terms and rules for your business.
One of the main reasons why you should create an operating agreement is because it will protect your business from issues that may arise as you grow and expand.
As your business develops, you will want to address issues like who will be responsible for certain things, whether certain employees should be paid a salary or hourly, and what notices are required if your company goes through a sale or investment.
Step 5: Get Your EIN
If you are operating as an LLC in Wisconsin, you will need to apply for your federal Employer Identification Number (EIN). The EIN is a number given to every business, and it will be used when filing official tax documents with the Internal Revenue Service (IRS).
The easiest way to get an EIN is to apply online through the business portal with the IRS’s website. You will also need to gather certain other information like your business’s name, and address along with the type of organisation (LLC, corporation, or partnership). All this information will be used when applying for your EIN to the tax department.
Once you have your EIN, it will then be used to apply for bank accounts, apply for tax information and submit any other official documentation with the state.
It is also important to note that a business can have only one EIN at a time. You will be able to use the same EIN throughout your company’s history to prevent any confusion or issues when it comes time to file documents and make changes to your business.
With the steps you’ve learned in this article, you can register your business with the state of Wisconsin and create an LLC for your business. You will need to follow the proper procedures for more efficient and smooth operations.
To start an LLC in Wisconsin is less complicated than in some states, but it is important that you take the time to make sure everything looks right. This way, you will be able to legally operate your business and avoid any issues with the government.