Wisconsin LLC, Corporation, and DBA Startup Guide
- Step 1: Decide on a Business Structure
- Step 2: Pick a Business Name
- Step 3: Register the Business
- Step 4: Obtain Your Federal Employer Identification Number
- Step 5: Open Company Bank and Credit Accounts
- Step 6: Set-up An Accounting System
- Step 7: Obtain Licenses and Permits
- Step 8: Hire Employees (if applicable)
- Step 9: Obtain Business Insurance
- Step 10: Systemize and Organize
- Step 11: Branding and Marketing
- Step 12: Annual and Ongoing Requirements
Wisconsin Business Facts and Environment
Wisconsin Business Facts
The Badger State’s economy is driven primarily by manufacturing, agriculture, and healthcare. Wisconsin has earned a secondary nickname as America’s Dairyland, as it is the US’ leading cheese producer. A dramatic improvement for job outlook has risen to near the national average, versus being ranked 49th among states in previous years.
Major Companies in Wisconsin
The Badger State is home to an array of large corporations, such as ACS Group, Johnson Controls, Kohl’s, Tyco International Plc, Kohler Co., ManpowerGroup, and Ashley Furniture Industries.
Startup Environment
Among US states, Wisconsin does not rank highly as a good place to start a business. CNBC ranked Wisconsin twenty-one in the nation as recently as 2017 and the same year Milwaukee was ranked 39th on the Kauffman Index of Startup Activity. Despite these low rankings, Wisconsin business owners do benefit from recent tax cuts.
Step 1: Decide on a Business Structure
There are 3 basic options: a DBA, a Corporation, or an LLC. Click here to learn more about business entities.
- A DBA or “Doing Business As” (also known as a “Fictitious Business Name” or FBN) is not really a separate structure, but just a different name that an individual or partners use as their business name.
- A Corporation is a separate entity (provides liability protection to the owners) that has a structure that includes shareholders, directors and officers. More complex than a DBA but the entity of choice for large companies and startups that intend to raise funding. Some professions are required to choose what is known as a “Professional Corporation” or PC (doctors, lawyers, architects, etc.).
- An LLC or “Limited Liability Company” is a newer type of business that is both a separate entity but provides very easy management (doesn’t require directors or officers) and taxation. Has largely replaced the DBA and Corporation in popularity recently as it provides liability protection but with much less complexity (and taxation) than a Corporation.
Step 2: Pick a Business Name
Choosing a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but the less times you have to do that the better). In Step 3 we’ll show you how to search for the name in Wisconsin, but we highly recommend you do the following before searching Wisconsin state databases:
- Make sure you’ve covered the basics: unique, easy to understand/pronounce (practice saying it out loud: “Thanks for calling XYZ”) and can survive over time (“DVD World” is not timely). Here are some of our tips on business identity including logo and trademarks.
- Search the web for your proposed name. Search Google, Bing and DuckDuckGo as a “first sweep” for any potential conflicts, especially in your state or local jurisdiction. NOTE: If you intend to operate nationally or even internationally it will be even more important that your name be unique. This should cover many cases where a company name is being used but not officially trademarked (see next tip).
- Do a trademark search with the US Patent and Trademark Office (USPTO). This will be a very good indicator if your name will have any conflicts. There’s an art to trademark searches (trademark specialists will charge you handsomely to do a thorough search) but in our experience if you can use Google at a fairly advanced level you can reasonably clear a name yourself.
TIP: search misspellings, plurals, variations of spelling, sound-alikes and other versions of your chosen name to be sure it’s not already registered.
- Make sure your company name choice is available by searching the Wisconsin Business Entity Database. NOTE: Make sure to search variations of spelling, plurals and misspellings as the state may reject a name that is too similar (then you have to start all over again, wasting valuable time).
Restrictions on Wisconsin Business Name & Business Purpose
- The name of a Wisconsin corporation must contain any of the words “corporation”, “incorporated”, “limited”, or “company” or the abbreviation “corp.”, “inc.”, “co.” or “ltd.”, or comparable words or abbreviations. The name of a limited liability company must contain the words “limited liability company” or “limited liability co.” or end with the abbreviation “L.L.C.” or “LLC”.
Step 3: Register the Business
Each state has its own requirements for registering a business. Now that you’ve chosen a business structure and selected your business name, here are the requirements to register your business in Wisconsin.
How to form an LLC in Wisconsin
- File the “Articles of Organization” with the Wisconsin Department of Financial Institutions.
- Once the articles are filed and approved by the state you will then need to properly organize the LLC (this also applies to “1-person LLC’s”) by holding an “Organizational Meeting” which takes contributions from the members, issues Member Certificates, adopts the company Operating Agreement and more.
How to Incorporate in Wisconsin
- File the “Articles of Incorporation” with the Wisconsin Department of Financial Institutions.
- Hold an “Organizational Meeting” to determine the percentage of ownership for each shareholder as well as resolve to do tasks like open a company bank account, pay back pre-incorporation expenses, elect S-Corporation status and more.
- Corporations can elect S-Corporation status with the IRS by filing IRS Form 2553. Click here to learn more about S-Corporations.
NOTE: When registering a new company the state can take several weeks to file the paperwork. You can expedite the process by hand delivering the documents directly to them or one of their field offices and paying an additional fee.
TIP: Check our order form to see how long Wisconsin is currently taking to process regular and expedited orders.
How to File a DBA in Wisconsin
- Wisconsin does not require the registration of trade names, but registration can be obtained using this form.
Optional Considerations when registering a Wisconsin business
- Hire a professional Registered Agent. Many people list their home or business address on the Articles of Organization or Incorporation. This can cause issues because it becomes public record (you’ll get lots of junk mail). A professional Registered Agent will provide their address and forward any important documents to you, this is also convenient if you have to move (you don’t have to file forms or pay fees, just update your address with your agent).
Ready to register a business in Wisconsin?
- We specialize in registering businesses in Wisconsin.
Ready to Start Now? Let Us Do The Work
Sure, you could do all the steps above or you could spend 5-10 minutes on our order form and let us take care of it while you work on more important things.
- Learn more about how we can form your LLC, Corporation and other business types for you.
- Read our verified reviews and 100% Satisfaction Guarantee
- Contact our friendly support team if you have any questions
Step 4: Obtain Your Federal Employer Identification Number
Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLC’s and optional for DBA’s (if you don’t have any employees, then it’s required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft.
To obtain an EIN you can apply online with the IRS or via IRS Form SS-4.
TIP: We will obtain your EIN for you if we form your company.
Step 5: Open Company Bank and Credit Accounts
To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork b) your EIN c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).
Click here to view a list of our recommended banks in our Vendor Network.
TIP: Our business formation service includes a free banking resolution for your use.
Step 6: Set-up An Accounting System
Setup your Accounting and Record-keeping system and learn about the taxes your new company is responsible for paying.
Company documents generally are required to be kept for 3 years, including a list of all owners and addresses, copies of all formation documents, financial statements, annual reports, amendments, or changes to the company. All Tax and Corporate Filings should be kept for at least 3 years. View our “Accounting & Financial Management” section for help with setting up an accounting system and purchasing accounting software.
Review our list of Accountants, Accounting Software, and Bookkeepers in our Vendor Network.
Step 7: Obtain Licenses and Permits
Now that you’ve registered your business name you might need to obtain a business license for your company – this authorizes your company to do business in your city or county depending on the type of service you offer. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).
TIP: We can help you identify the necessary forms to obtain your business license.
Step 8: Hire Employees (if applicable)
If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate State Agencies or obtain Workers Compensation Insurance or Unemployment Insurance (or both). View our “Employees & Payroll” section for help with hiring employees and processing payroll.
Review our list of recommended Payroll Providers in our Vendor Network.
Step 9: Obtain Business Insurance
There are many types of insurance for businesses but they are usually packaged as “General Business Insurance” or a “Business Owner’s Policy”. This can cover everything from product liability to company vehicles. A decent policy can run as little as $300/year and offers a great extra level of protection.
Click here to view our list of insurance providers in our Vendor Network.
Step 10: Systemize and Organize
Prepare the business as if someone needed to take it over and run it for you. This means having a method to process orders, pay bills, pay employees, pay taxes, maintain your permits, etc. Basically, try to make the operational aspect of the business as automated and efficient as possible so you can concentrate on growing your business. View our “Manage Your Company” section for help with systemizing and automating your business.
Step 11: Branding and Marketing
Now that you’ve set up the company for success, you need to get the word out. Create a marketing plan for your products and services that targets your ideal customer. View our “Marketing & Sales” section for help for more information.
Step 12: Annual and Ongoing Requirements
DBA: Your Wisconsin trade name should be valid for 10 years and may be renewed before the name expires.
LLC: Wisconsin LLCs are required to file an annual report by the end of the filing anniversary quarter each year.
Corporation: Wisconsin corporations must file an annual report each year by the end of the filing anniversary quarter. LLCs and Corporations will pay a filing cost of $25.
Click here to view our MyCompanyWorks Premium™ service which can automate most or your ongoing compliance tasks.
Ready to start a business in Wisconsin?
- Our Wisconsin filing services will help you get started as quickly as possible.
Important Wisconsin Contacts
Wisconsin Department of Financial Institutions
Division of Corporate & Consumer Services (for Corporation and LLC filings)
4822 Madison Yards Way, North Tower
Madison, WI 53705
Phone: 608-261-7577
Wisconsin Taxation Departments
Wisconsin Labor and Employment Departments
Wisconsin Startup Resources
1. Small Business Administration (SBA) Wisconsin
- Western Wisconsin SCORE offers free business mentoring, low-cost or no-cost business training, and templates and tools to help start or grow a business.
- The Central Wisconsin SCORE gives free, confidential advice and consultation to prospective and current business owners in central Wisconsin.
3. Wisconsin Legal Statutes
- Wisconsin Business Corporation – note this is the broad code that includes various other topics including business corporation.
- Wisconsin Limited Liability Company – the specific act that applies to Wisconsin LLC’s.
4. Wisconsin Chambers of Commerce
5. Wisconsin One Stop Business Portal
- The Wisconsin One Stop Business Portal is here to create an easy step-through process where Wisconsin’s businesses can find the requirements and tools they need to start a business in Wisconsin.
6. Wisconsin Angel Investors
7. Wisconsin Business News
8. WEDC – The Wisconsin Economic Development Corporation (WEDC) is committed to creating and maintaining a business climate that allows you to maximize your potential.
9. Wisconsin Small Business Development Center
The Wisconsin Small Business Development Center is a statewide network supporting entrepreneurs and business owners through no-cost, confidential consulting and business education.
10. Wisconsin Green Masters Program – a recognition and assessment program for Wisconsin businesses interested in improving and being recognized for their sustainability initiatives.
