Key Takeaways

  • Forming a Wisconsin LLC typically costs $130 online or $170 by mail, plus ongoing annual report and potential business license fees.
  • Wisconsin LLC annual reports cost $25 for domestic LLCs and $80 for foreign LLCs, due by the end of the formation quarter.
  • Additional costs may include name reservation ($15), registered agent services ($100–$300 annually), and optional expedited filings.
  • No separate franchise or privilege tax applies to LLCs unless taxed as corporations.
  • Employers must register for and pay state withholding and unemployment taxes if they hire employees.
  • Filing late can result in administrative dissolution after one year, impacting the LLC’s good standing with the state.

The Wisconsin LLC annual report is required for all Wisconsin LLCs, both domestic and foreign. The annual report forms will be sent to your LLC’s registered agent prior to the deadline for filing. You can file your annual report either by mail or online via the state’s Department of Financial Institutions (DFI) website. However, foreign LLCs must send in their annual report by mail.

The annual report updates important business information, such as the members’ names and/or addresses, the business and/or mailing address, and the registered agent information. It is primarily used for tax purposes, to ensure that all business information is up-to-date, particularly for ongoing tax legal and regulatory requirements.

How to File the Annual Report

As previously noted, if you operate as a domestic LLC, you can simply visit the Wisconsin DFI website to submit your annual report or mail it in if you choose. If you are a foreign Wisconsin LLC, then you will have to submit the annual report by mail. You can initially obtain this document from your registered agent, who will receive the hard copy of the paperwork prior to the deadline. You will have plenty of time to obtain the paperwork and either submit the information online or by mail.

Cost to File Annual Report

The cost for Wisconsin domestic LLCs is $25, and the cost for foreign LLCs is $80. The state doesn’t charge a late filing fee; however, failure to file the annual report by the deadline could result in an automatic dissolution after a period of one year.

Wisconsin LLC Costs and Fees

In addition to the annual report fee, several other expenses contribute to the total Wisconsin LLC cost throughout the year:

  • Articles of Organization: Filing the Articles of Organization with the Wisconsin Department of Financial Institutions (DFI) costs $130 if filed online or $170 by mail.
  • Name Reservation Fee: If you choose to reserve your business name before forming the LLC, the reservation fee is $15, valid for 120 days.
  • Registered Agent Fee: While you can act as your own registered agent, hiring a professional service typically costs between $100 and $300 per year, ensuring compliance and privacy.
  • Certified Copies and Certificate of Status: The DFI charges $10 per document for certified copies and $10 for a Certificate of Status (also known as a Certificate of Good Standing).
  • Expedited Service Fee: Wisconsin offers expedited processing for an additional $25, which can be beneficial for time-sensitive filings.
  • Business Licenses and Permits: Depending on your industry and location, you may need additional business or professional licenses. These costs vary by county or city.

These fees are in addition to the annual report requirement, so planning ahead for both initial and recurring costs helps keep your Wisconsin LLC in good standing.

Annual Report Deadline

For Wisconsin domestic LLCs, you’ll have to file the annual report by the end of the quarter in which you initially registered. For example, if you formed your LLC on June 15, then your annual report will be due by September 30. The filing due dates are as follows: March 31, June 30, September 30, and December 31. For foreign Wisconsin LLCs, the annual report is due by March 31.

Penalties for Failing to File the Annual Report

While Wisconsin does not impose an immediate late fee for missing your annual report deadline, failure to file for one year can result in administrative dissolution of a domestic LLC or revocation of authority for a foreign LLC. Once dissolved, the LLC loses its legal rights to operate in Wisconsin under its name until reinstated.

To reinstate a dissolved LLC, you must:

  1. File the delinquent annual report(s).
  2. Pay a reinstatement fee of $100.
  3. Ensure all back taxes and regulatory obligations are cleared.

It’s crucial to maintain timely filings to avoid disruption in business operations and maintain liability protection for members.

Wisconsin State Business Taxes

Most LLCs operate as pass-through tax entities, meaning that the business passes all of its profits to the LLC owners who report a portion of the profits on their personal income tax returns. That portion is equivalent to each member’s ownership percentage. This means that the LLC doesn’t pay corporate income taxes. However, not all LLCs operate as pass-through tax entities. For example, when you initially form your LLC, you will need to elect how you want your LLC to be taxed. Since the IRS (Internal Revenue Service) treats the LLC as a disregarded entity, the business will need to choose how to be taxed as follows:

  1. Single-member LLCs (one owner) can choose to be taxed as a sole proprietorship, S Corporation, or C Corporation
  2. Multi-member LLCs (2 or more owners) can choose to be taxed as a partnership, S Corporation, or C Corporation

Whatever you choose, you will have to submit IRS Form 2553 indicating as such. Keep in mind that your business will still operate as an LLC, and therefore, you won’t lose any of the benefits that the LLC offers, i.e., limited liability protection, management flexibility, few formalities, and inexpensive formation.

However, some states do in fact impose taxes on the LLC separate and apart from what the members report on their personal income tax returns. This tax is essentially a fee incurred by the LLC for having the privilege of doing business in that state. Wisconsin doesn’t charge such state tax.

But, if the LLC is taxed as a C corporation, then the business will have to pay corporate income taxes. And in the State of Wisconsin, this tax is called franchise tax. The state charges a flat 7.9% of net income for the franchise tax, which is payable to the state’s Department of Revenue.

Estimated Ongoing Costs for Wisconsin LLCs

Besides state taxes, LLCs in Wisconsin incur several ongoing costs to stay compliant and operational:

  • Annual Report Fee: $25 (domestic) or $80 (foreign).
  • Registered Agent Service: $100–$300 annually.
  • Business License Renewals: Varies by business type and location.
  • Optional Tax Election Costs: If an LLC elects to be taxed as an S Corporation or C Corporation, there may be additional IRS and state compliance costs, such as payroll setup and tax preparation.
  • Bank Fees: Some financial institutions charge $10–$25 monthly for business checking accounts.

Altogether, the average ongoing Wisconsin LLC cost ranges from $150 to $500 per year, depending on whether professional or DIY filing options are chosen.

State Employer Taxes

If your Wisconsin LLC has employees, then you will need to pay employer taxes, and your employees will also need to pay state taxes. As any other business with employees, you will be required to withhold and pay employee income taxes to the Department of Revenue. Such withholding taxes will have to be paid quarterly by submitting payment along with Form WT-6. You will also have to register for unemployment insurance taxes, which can be obtained through the state’s Department of Workforce Development website.

Wisconsin LLC Renewal and Compliance Checklist

To maintain your LLC’s good standing and avoid penalties, Wisconsin business owners should complete the following compliance steps each year:

  1. File the Annual Report: Submit to the DFI by your assigned quarter-end date.
  2. Renew Business Licenses and Permits: Check local and state requirements annually.
  3. Update Registered Agent Information: Report any agent or address changes promptly to the DFI.
  4. Maintain Financial Records: Keep accurate bookkeeping records for at least three years.
  5. File State and Federal Taxes: Ensure proper filings for income, payroll, and sales taxes if applicable.
  6. Confirm Good Standing: Request a Certificate of Status periodically to confirm compliance with the DFI.

Following these steps ensures your LLC remains compliant, avoids costly reinstatement fees, and preserves your limited liability protection.

Frequently Asked Questions

1. How much does it cost to start an LLC in Wisconsin?

The filing fee for Articles of Organization is $130 online or $170 by mail, paid to the Wisconsin Department of Financial Institutions.

2. Are there any annual costs for a Wisconsin LLC?

Yes. You must file an annual report costing $25 for domestic LLCs and $80 for foreign LLCs, plus optional registered agent or business license fees.

3. What happens if I forget to file my annual report?

Failure to file your annual report for over a year can result in administrative dissolution. To reinstate, you must file overdue reports and pay a $100 reinstatement fee.

4. Does Wisconsin have a franchise tax for LLCs?

No franchise tax applies to LLCs unless they elect to be taxed as a corporation, in which case the 7.9% franchise tax rate applies.

5. How can I verify my LLC’s good standing in Wisconsin?

You can order a Certificate of Status from the Wisconsin DFI website for $10, confirming your LLC’s active and compliant status.

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