How to Register a Small Business in Wisconsin

Wisconsin business owners must properly register a business to legally operate in the state of Wisconsin. The company structure and business type will determine how a Wisconsin company must register with the state. Furthermore, Wisconsin businesses must obtain the appropriate state and local licenses to operate the business. Wisconsin business owners that fail to properly register their business may be subject to penalties, fines and possible business closure.

Instructions

1. Determine a structure for the Wisconsin business. Wisconsin businesses may form a sole proprietorship, partnership, limited liability partnership (LLP), limited liability company (LLC), or a corporation. Each business structure has its own legal and tax implications. For instance, sole proprietors in Wisconsin are not required to file formation documents with the state, whereas a Wisconsin corporation must file articles of incorporation with the Wisconsin Department of Financial Institutions. Wisconsin sole proprietors may pass business profits to an individual tax return, whereas a Wisconsin corporation may be required to pay taxes on corporate income, and shareholders (owners) pay taxes on dividends issued by the corporation. Furthermore, Wisconsin businesses must pay the appropriate filing fees as a condition of formation.

2. Create a name for the Wisconsin business. A prospective business must select a unique name, unlike any other business entity registered in the state of Wisconsin. Sole proprietors and partnerships in the state of Wisconsin have the same name as the owners of the business. However, Wisconsin sole proprietors and partnerships may file a fictitious business name, also known as a "doing business as" (DBA), with the Wisconsin County Register of Deeds. Filing a fictitious business name will allow Wisconsin sole proprietors and partnerships to use a business name other than the personal name of the owners. Other business entities in Wisconsin will state the name of the business in the company's formation documents. Wisconsin businesses may conduct an online business name availability search using Wisconsin's Corporate Registration Information System (CRIS).

3. Register for a federal tax ID number. Most business structures in the state of Wisconsin must obtain a federal tax ID number from the IRS. Wisconsin Sole proprietors without employees may not need a federal tax ID number, but it is still good to have for business identification and opening a company bank account. Wisconsin businesses may obtain a federal tax ID number by phone, online, fax or mail. Phone and online applications will allow the IRS to issue a Wisconsin business a federal tax ID number for immediate business use. Wisconsin businesses that apply by fax will wait up to 4 business days to receive a federal tax ID number. The IRS may take up to 4 weeks to process federal tax ID number applications sent by mail.

4. Register for Wisconsin business taxes. The taxes a Wisconsin business must register for will depend on the nature of the business. For instance, Wisconsin businesses involved in selling goods to the public must obtain a seller's permit, as well as a sales and use tax permit. Wisconsin businesses that sell alcohol must obtain a license to sell alcoholic beverages. Businesses in Wisconsin with employees must obtain a Wisconsin tax ID number from the Wisconsin Department of Revenue. In addition, Wisconsin businesses with employees must register for state unemployment taxes and worker's compensation with the Wisconsin Department of Workforce Development. Wisconsin businesses must provide a social security number or federal tax ID number, as well as the name and location of the business. Wisconsin businesses may register for business taxes online using the Wisconsin Department of Revenue website.

5. Obtain permits and licenses to operate the business. All businesses that operate in the state of Wisconsin must obtain a general business license from the city or county clerk's office where the business operates. The nature of the permits and licenses needed to operate a company in the state of Wisconsin depends upon the nature of the business. For example, Wisconsin businesses that provide professional services such as insurance, must obtain the appropriate state-issued occupational license from the Wisconsin Department of Licensing and Regulation. Wisconsin businesses may be required to obtain a zoning permit depending on the location of the business. Contact the city or county clerk's office where the business resides to ensure all necessary permits and licenses have been acquired.

References

• Business: Starting a Business in Wisconsin
• The State of Wisconsin: Naming Your Business
• Wisconsin Department of Commerce: Registering a Business in Wisconsin

Resources

• City of Madison: Business Planning Assistance
• Wisconsin Department of Revenue: Businesses