Wisconsin is the “Badger State” and the 20th most populous in the USA, known as a leading state for the large manufacture of dairy products that are mainly exported. Foreign investments are welcomed in Wisconsin and entrepreneurs can develop a wide range of businesses and generate important profits in this state. We have prepared a general guide to company incorporation in Wisconsin which can guide and help investors open companies in this state in a fast and reliable manner. Also, our team of company formation specialists in USA is at your disposal with assistance for starting a business in Wisconsin.

How can I open an LLC in Wisconsin?

If you would like to set up a limited liability company in Wisconsin, the suitable business form for most activities in this state, you should bear in mind the conditions and the formalities imposed in this matter. For instance, the main documents of the company, the Articles of Association, need to contain:

1. the name of the shareholders and the country of residence;
2. the name of the business and the address of the company in Wisconsin;
3. details about the appointed board of managers for the LLC;
4. the name of the appointed registered agent who acts on behalf of the company.

We remind that entrepreneurs from abroad can benefit from the services offered by our team of company formation agents in USA when they want to open a business in Wisconsin and can represent the LLC from a legal point of view.

Do I need an operating agreement for my company in Wisconsin?

It is not mandatory to have an operating agreement, but it is though recommended to create this internal governing document for an LLC in Wisconsin. This comprises information about the duties of the owners, their capital share contribution, the voting rights, the working relations between managers and shareholders, the structure of the ownership and details about company dissolution when it is the case.

What is the EIN?

The Employer Identification Number or simply the EIN is the company’s federal tax ID. This is the number of the company that it is issued by the IRS (Internal Revenue Service) and which shows that the business pays the taxes. The local IRS office accepts the main documents of the firm and then issue the EIN. Investors who want to open a business in USA can address their inquiries to our team of advisors at any time.

The sales tax in Wisconsin

The standard sales tax in Wisconsin is set at 5% rate, one of the lowest in the USA, which is imposed on different goods and services. It is good to know that municipalities of Wisconsin do not impose any sales tax. The lodgings tax and the rental tax are two important fees in Wisconsin that entrepreneurs should consider when opening a business.

Do I need a business license in Wisconsin?

Yes, entrepreneurs from abroad need to apply for a business license before commencing any activities. Such permit is issued by the local, federal and state administrations in Wisconsin, USA, under the regulations imposed. It is good to know that the Chamber of Commerce issues the local licenses and permits in Wisconsin.

What is workers compensation in Wisconsin?

The workers compensation is the necessary insurance issued for employers who want to be protected against legal complaints in cases of accidents involving employees. Such compensations are offered to workforces as payments in work-related incidents in the company.

Conditions for hiring employees in Wisconsin

From a legal point of view, foreign entrepreneurs who want to hire staff for their companies need to register for workers compensation, social contributions, register the employees and pay at least the minimum wage as stipulated by the laws of Wisconsin. We also mention that the Wisconsin Department of Workforce Development is in charge of the registration of employees in this state.

Economy facts about Wisconsin

Wisconsin is an important American state from an economic point of view and significant for the states’ gross domestic product (GDP). Ranked 21st among the American states with solid and prolific economies, Wisconsin relies on the excellent agriculture, tourism, food industry, financial services, IT and many more. Madison is the capital of Wisconsin and a representative destination for business. Milwaukee, Appleton, Green Bay, La Crosse, Middleton or Beloit can be excellent cities for opening companies and generate revenues in a wide range of sectors.

Companies in Wisconsin are subject to the corporate franchise tax or the corporate income tax, plus the economic development surcharge. The personal income tax ranges from 4.6% to 7.65% and it is applicable to incomes of business entities like limited liability companies. Let our team of company formation specialists in USA tell you more in this sense and guide you throughout the registration process of companies in Wisconsin.

What is the corporate franchise tax in Wisconsin?

7.9% represents the corporate franchise tax rate in Wisconsin which is applicable to C and S corporations and their net income. All the returns and payments must be done by April 15th (every year), respecting the requirements of the Wisconsin Tax Revenue Department. Feel free to talk to our consultants for more details in this matter.

What is the economic development surcharge rate?

C corporations and most of the S corporations established in Wisconsin are subject to the economic development surcharge, especially if the gross receipts achieve $4 million. 3% of the net business income of a company in Wisconsin or $25 represent the economic development surcharge rate, mentioning that such a tax cannot surpass $8,900. It is good to know that limited liability companies and partnerships are not subject to the economic development surcharge in Wisconsin. If you would like to start a business in USA, and especially in Wisconsin, you need to pay attention to the tax structure in this American state. You are recommended to talk to our company formation agents in USA for additional details in this direction.

What is the sales tax in Wisconsin?

The standard sales tax in Wisconsin is set at a 5% rate applicable to most of the products and services meant for sale purposes in this state. Furthermore, 62 districts can impose a supplementary sales tax of 0.5%. The county use tax of the same amount is imposed for the sales of boats, aircraft, and vehicles in Wisconsin. The sales tax in Wisconsin is applicable to clothing, electronics, computers and software and also to varied services including hotel room rentals in Wisconsin. There are also sales tax exemptions in Wisconsin and refer to food products (except prepared ones like soft drinks), newspapers, prescription drugs, water supply.

The personal income tax in Wisconsin

The personal income registered in Wisconsin is taxable under four brackets as follows:

Wisconsin Taxable Income Tax Rate

• Between $0 and $11,450: 4.00%
• Between $11,450 and $22,900: 5.84%
• Between $22,900 and $252,150: 6.27%
• For more than $252,150: 7.65%

If you are a foreign entrepreneur wanting to open a company in USA and particularly in Wisconsin, it is suggested to first ask about the tax requirements imposed in this state. As for the company formation in USA and all the conditions imposed, our team of company formation agents in USA can supervise the entire registration process. Let us remind you that you can also read the general guide to company formation in Wisconsin and find out more about how the business is done in this American state.

The property tax in Wisconsin

1.94% is the average property tax rate in Wisconsin, mentioning that ten of the municipalities can impose their own property tax rate of 2%. Wisconsin imposed the fifth-highest property tax rate in USA. Let us remind you that our team of consultants can tell you more about the taxes you need to pay in Wisconsin.

Other tax facts in Wisconsin

The Gas Tax, the Cigarette Tax, and the Mobile Home Tax are among the taxes to consider in Wisconsin. In the case of limited liability companies in Wisconsin, these are pass-through entities and therefore the taxation is made on the personal income of each forming member of the company. The same thing is available for partnerships registered in Wisconsin. There are also companies incorporated in Wisconsin which are subject to Nexus. This means that if the business operates in other American states too, but generates incomes in Wisconsin, such business is subject to the taxes in those states. In most cases, Nexus might be a complicated aspect when talking about taxes for companies in Wisconsin. This is why a tax professional or an accountant in Wisconsin is not only recommended but mandatory. You might want to direct your attention to an accounting firm in USA that can be in charge of all the aspects regarding the taxes, filings, and payments among many things.