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Business Information & Rankings

• Wisconsin ranks 2nd -in percentage of total jobs that are in manufacturing. (Labor Statistics, 2004)
• Business taxes are lower in Wisconsin than those in 35 other states. (Federal Reserve Bank of Boston, 2005)
• Wisconsin’s top five industries are dairy products, motor vehicles, paper, meat products, and small engines.

Cost of living

Crime Rate

Wisconsin has the 11th lowest overall crime ranking in the U.S. (FBI, 2004)

Fees & Taxes

Business Inventory Tax
Exempt.

Corporate Income Tax
Wisconsin’s corporate tax structure consists of a flat rate of 7.9% on all corporate income. Additionally, there is no unitary tax on foreign-owned corporations.

Personal Income Tax
Wisconsin was the first state to require a personal income tax starting in 1911. The personal income tax consists of four brackets with a top rate of 6.75% starting at an income level of $132,580.

Personal Property Tax
Wisconsin is one of the 38 states that collect property taxes at both the state and local levels. Wisconsin does not assess a tax on intangible personal property.

State Sales and Use Tax
Base Rate: 5.00%
Machinery Rate: none

Wisconsin provides an exemption for machines and specific processing equipment, including safety attachments, and repair parts or replacements exclusively and directly used by a manufacturer.

Unemployment Insurance
Wisconsin’s new employers’ rate is 3.25% for 3 years.

What makes “America’s Dairyland” one of the best places to grow or expand your business? A start-up company in Wisconsin can leverage several aspects of the pro-business environment, which includes favorable tax policies, rapid industry development, strong infrastructure, good connectivity with transportation hubs, availability of business funding, and skilled and dedicated workforce. The state is home to the top 6 start-up eco-systems in the country and Milwaukee, WI is considered as the numero-uno place for food entrepreneurs. The state has been built on the backbone of a strong agricultural tradition that has evolved and expanded over a period of time along with manufacturing, advanced machinery, biohealth, aerospace, and material sciences among others.

Business Growth Incentive for New Businesses

The gains are plenty if you register a new company in Wisconsin and these gains can vary from funding opportunities to deriving exemptions and credits on taxes. The various incentives available can be categorized under the following industries:

• Agriculture
• Arts
• Construction & Housing
• Green/Energy
• Logging
• Manufacturing
• Printing & Advertising
• Recreation
• Retail & Services
• Transportation
• Others including Enterprise zones

Let’s take a quick look at the advantages of forming an LLC or a Corporation in Wisconsin.

Advantage#1: The benefits of Incorporation or LLC formation

Corporation

• Credits for businesses: If you register a new business in Wisconsin as a business corporation then you can take advantage of several credit programs. These include 13 types of tax credits available for corporations that can be claimed against the corporate income as well as franchise tax. The different types of Corporate Non-Refundable Credits available to businesses include:
  – Manufacturer’s Sales Tax: The maximum credit amount available is $6,142,807
  – Manufacturing Investment: The maximum credit amount available is $22,170,938
  – Research Facility Credit: The maximum credit amount available is $23,331,973
  – Dairy and Livestock: The maximum credit amount available is $133,458,349
  – Development Zone: The maximum credit amount available is $10,214,549
  – Economic Development: The maximum credit amount available is $25,971,668
  – Historic Preservation: The maximum credit amount available is $3,628,623
  There are many more tax credits that a start-up companies in Wisconsin can leverage. These credits have been grouped into five general categories, which are:
  – Industry-specific credits,
  – Research credits,
  – Zone-based credits,
  – Credits for economic development,
  – Agricultural credits
• No Income Tax: If you register a new business in Wisconsin as an S Corporation, you can benefit from the fact that there are no income taxes to be paid and an S corporation loss or income will be passed through to the stockholders. It is also important to know that there are a few exceptions though.

LLC

• Flexible Profit Distribution: A start-up company in Wisconsin registered as an LLC has the benefit of being able to select different ways of distribution of profits unlike a partnership where the distribution is 50-50.
• Sales and Use Tax Exemptions: Wisconsin provides a variety of exemptions targeting start-ups in specific industries like farming, construction, printing, manufactured home production, logging, and newspapers. Some of the most popular exemptions include:
  – Manufacturing Machinery and Equipment: A start-up company in Wisconsin can benefit from a comprehensive sales and use tax exemption especially when purchasing machinery and equipment to be used directly in a manufacturing process.
  – Manufacturers’ Materials: The state of Wisconsin will exempt businesses from sales and use tax on any tangible personal property that is consumed during the manufacturing process or loses its identity while in the process of manufacturing of tangible personal property.
  – Pollution Abatement, Waste Treatment, and Recycling Equipment: A business will be exempted from sales and use tax on waste treatment facilities and pollution abatement equipment. Businesses will also enjoy exemptions on any replacement parts, and supplies to be used for waste treatment and pollution abatement.

Advantage#2: Wisconsin Business Incentives

Once you register a new company in Wisconsin, there are several business incentives and programs that your company can benefit from. Let’s take a look at some of the most popular programs:

• Wisconsin Enterprise Zones: If you register a new company in Wisconsin in the enterprise zone then there are several incentives that your business will benefit from including tax credits. The program has been implemented in the state by the regional economic development division of the Wisconsin Economic Development Corporation (WEDC). The primary objective of the Enterprise Zone (EZ) Program is to incentivize those projects that involve expansion of existing Wisconsin businesses or even relocation of business operations from other states to the EZ. Businesses can enjoy tax credits on several areas like job retention, job creation, employee training, capital investment, and supply chain investment. Know More
• Development Opportunity Zone Tax Credit (DOZ): The primary aim of the Development Opportunity Zone (DOZ) Program is to incentivize new as well as expanding business in the cities of Janesville, Beloit, and Kenosha. The program has been implemented by the Wisconsin Economic Development Corporation (WEDC) and you will have to apply to the regional economic development director to avail the tax credits under this program. These Development OZ tax credits will be available to a start-up company in Wisconsin if they are involved in job creation, job retention, capital investment and environmental remediation within the mentioned opportunity zones. Know More

Are there any Disadvantages of Incorporating in Wisconsin?

If you register a new business in Wisconsin, you will be able to enjoy several benefits in the form of tax credits, grants, loans, Enterprise Zones for Development and Opportunity zone programs, sales and use tax exemption, capital gains deferral, and much more. So, the big question is – are there any disadvantages? In reality, there are no disadvantages as such except the ones that are specific to the type of business you register. For instance, an LLC has a limited life and can get dissolved if a member dies. Similarly, incorporation can lead to higher overall taxes and this is where you can find relief in the form of the tax credit programs.

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Wisconsin is a paradise for start-ups as it offers several benefits and a wide variety of incentives. In order to set up a business and make it operational, you will need to

• Register your business first
• Ensure you have a proper business license

It is important to know that every Wisconsin start-up doesn’t require a business license, however certain businesses may require single or multiple licenses or permits. Some of these permits and licenses are regulatory in nature i.e., they cover specific business activity. The regulatory licenses and permits are issued by different state agencies while the tax-related licenses are issued by the Department of Revenue (DOR). There are business activity specific licenses and permits issued by divisions of the Department of Health Services and Department of Natural Resources.

The question is, how do you know what type of Wisconsin company license or permit you require and which state agency is responsible for issuing it.

Step-by-Step Guide to a Business License in Wisconsin

Here is a step-by-step approach towards acquiring a business license in the state of Wisconsin:

Step#1: The Industry or Business Type

How would you know what type of business or professional license is required to operate in Wisconsin? The type of industry or the activities of a business entity helps in identifying the type of business license required.

The license or permit can be obtained from various state agencies directly depending on the type of business you have. Let’s take a look at some examples to understand this better:

Food, Dairy & Restaurant Licenses

Issued by: State of Wisconsin, Department of Agriculture, Trade and Consumer Protection (DATCP)

The Wisconsin company license that fall under this category varies according to the type of business activity. Let’s take a look at some of the different types of business activities and the license fee.

• Butter maker – Fee: $75 (2 years)
• Cheese maker – Fee: $75 (2 years)

​Food Processing Plant License (Wholesale) – Fee: The business license fee varies based on the annual production like the fee for annual production of at least $250,000 is $835 and there is also a “License Surcharge” of $100. More Information

Food Retail License/ Retail Food Establishment – Fee: The business license fee varies based on total food sales. For example, the fee for ​food sales of at least $25,000 but less than $1,000,000 is $265 and there is also a “License Surcharge” of $100. More Information

THE LICENSING PROCESS

Alcohol Beverage License

License Issued by: State of Wisconsin, Department of Revenue

The retail business license allows sale of alcoholic beverages to individual retail customers, from a specific place or premises. The alcohol beverage licenses can be classified as under:

• “Class A” liquor licenses
• “Class “A” fermented malt beverage licenses
• “Class A” (cider only) licenses
• “Class B” liquor licenses
• “Class C” wine licenses
• Temporary Class B licenses often known as picnic licenses

Fee: The fees for a business license in Wisconsin for alcoholic beverages are set by local municipalities, within the limits set by the state law. A Class “B” Beer retailer license has a fee of $100 per year while that of a Temporary Class “B” (beer) license is $10. There is also a “Reserve” Class B intoxicating liquor license where the minimum fee is $10,000.

Application: There are different forms for different categories of licenses like AT-106 for Original Alcohol Beverage License Application and AT-315 for Temporary (Picnic) License Application

More Information

Step#2: Licenses issued by City/County

If your business or industry type doesn’t fall under a state-wide license then you will have to check with the local city or county office. A Wisconsin company license can also be issued by local counties or cities in which the business is located. Let’s look at an example to understand how this works.

If you are planning to establish your business in Madison & Dane County then you will have to apply for a business license through Public Health Madison & Dane County (PHMDC). The following licenses or permits are issued in these counties:

• Bed & Breakfasts
• Hotels
• Short-term Rentals: Tourist Rooming Houses
• Restaurants and Retail Stores
• Farmers’ Markets
• Mobile Food Establishments
• Temporary Food Stands
• Tattoo & Body Piercing Licensing
• Water, Well & Septic Permits

You can check the fee for your business license in Wisconsin here.

Download General Business License

Step#3: Issuance of a Business License

How is a business license in Wisconsin issued? You have to identify the following to complete the process:

1. The type of business or industry
2. Do you need a license or a permit?
3. Will it be issued by the state or the city or county?

Once you have identified the above, all you need to do is either download the application online or contact the concerned state department or city of clerk office.

It is important to note that a business license or permit will have to be renewed annually unless specific dates have been mentioned, to keep the business operational.

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What makes “America’s Dairyland” a “good for business” state? To start with, the cost of doing business is low, which means you will be able to save more. There is another important aspect and that is the policies that have been created to drive business growth. These policies include business-friendly tax approaches and the creation of an environment that spurs investment and growth. Incorporation in Wisconsin also means that start-ups and midsized businesses will get a platform that will help them compete nationally as well as globally.

Madison, Milwaukee, Green Bay, La Crosse, Eau Claire and Racine are top start-up ecosystems according to February 2019 – Silicon Prairie Report. Be a part of this ecosystem today!

Why Choose Wisconsin for Incorporation?

Is Wisconsin an innovation state? According to a report by Brookings Institution, 2015, Wisconsin’s commitment towards advancement in STEM programs has been praise worthy and today, Madison is considered amongst the first in metro areas for STEM grads. The state also has the 5th strongest engineering program in the nation and is the 2nd best state for scaling up businesses. Innovation and a strong business platform have been driving factors for company incorporation in Wisconsin.

Now let’s take a look at some of the salient benefits that are responsible for fuelling the growth of small businesses:

Business Development Tax Credit (BTC) program

The Business Development Tax Credit (BTC) program will benefit those who set up companies in Wisconsin as it is a performance-based, refundable income tax credit program. The primary objective of this program is to encourage business development in the state. The BTC Program is a replacement for the Jobs Tax Credit (JTC) Program and the Economic Development Tax Credit (ETC) Program. Your business needs a WEDC certification for eligibility in order to earn tax credits. You can earn the following credits through this program:

• Job creation tax credits may be equal to almost 10% of the annual wages for employees in full-time jobs.
• Tax credit of 5% on annual wages for employees especially if your business is situated in an economically distressed zone or area

Information Brochure

Incentives for Manufacturing Businesses

Company incorporation in Wisconsin and especially in the manufacturing industry can open doors to a variety of incentives that your business can benefit from. Some of the popular incentive programs for businesses in the manufacturing industry include:

• Manufacturing and Agriculture Tax Credit: This program will help in offsetting a considerable share of Wisconsin income tax.
• Property Tax Exemptions: Your business can leverage tax exemptions applicable on Machinery and equipment used in manufacturing and certain waste treatment facilities owned by manufacturers and commercial businesses.
• Sales Tax Exemptions: This is applicable for equipment and machinery used by manufacturers in producing tangible personal property and fuel and electricity used in manufacturing.
• Research and Development (R&D) Credits

More Information

How do you incorporate in Wisconsin?

What is the process of incorporation in Wisconsin? What type of documentation is required? These are some of the common questions that you will be confronted with if you are planning to start a new business in the state. The following steps will enable understanding of the entire process:

Business Type

The first step towards incorporation in Wisconsin is choosing the type of business you want to form. You can choose to form an LLC or a Corporation. The type of business entity you want to form can either be a domestic or a foreign entity. The forms and fee will be different for each type of entity. Know more

Business Entity Name

One of the most important steps towards incorporation in Wisconsin is naming your business entity. You have to start by identifying, searching, reserving, or registering the business entity name. There are 3 steps towards business name formation and they are:

1. Naming Requirements: A corporation under 2011 Wisconsin Code § 180.0401 and an LLC under 2011 Wisconsin Code § 183.0103 should contain words like “corporation”, “incorporated”, “limited liability company” or abbreviations like “corp.”, “inc.”, “ltd.”, “L.L.C.” or similar abbreviation.
2. Business name search: If you are planning to set up company in Wisconsin, you will need to search for a business name that is not in use currently. You can conduct name search here.
3. Name Reservation: Once you have identified business entity name, and if the name is available then you can reserve the name pursuant to 2011 Wisconsin Code § 180.0402 for corporations and 2011 Wisconsin Code § 183.0104 for an LLC. A business name can be reserved for a period of 120 days with the State of Wisconsin, Department of Financial Institutions, Division of Corporate and Consumer Services.
4. A foreign business entity will have to register their business name pursuant to 2011 Wisconsin Code § 183.0104(3)(a) for an LLC and 2011 Wisconsin Code § 180.0403 for a business corporation

Choose a Registered Agent

Whether you form a corporation or an LLC business entity, in order to transact business in the state of Wisconsin, you will have to maintain a registered agent pursuant to 2011 Wisconsin Code § 183.0105 for an LLC and 2011 Wisconsin Code § 180.0501 for Business Corporations.

We are one of the respected registered agents in Wisconsin and will be responsible towards initiating incorporation in Wisconsin through processing of your “Articles of Organization”, and “Articles of Incorporation” for domestic entities and “Certificate of Registration” and “Certificate of Authority” for foreign business entities.

Articles of Incorporation and Certificate of Authority

You will be required to submit “Articles of Incorporation” pursuant to 2011 Wisconsin Code § 180.0202 if your business is a domestic corporation. You will require a “Certificate of Authority” pursuant to 2011 Wisconsin Code § 180.1503, if it is a foreign business entity. In order to streamline the process of incorporation in Wisconsin, we can file documents on your behalf through the online process or through an expedited process.

Date Stamped Copies

As a part of the process of company incorporation in Wisconsin, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.

Costs and Fees associated with Wisconsin Incorporation

What would it cost to set up company in Wisconsin? Check Fees here!

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You can form a corporation in Wisconsin or any other business including Domestic and Foreign Limited Liability Companies, Non-profit Corporation, Sole proprietorship, and Partnership. One of the growing sectors in Wisconsin today is the Aerospace industry, which is home to 200 companies. In fact the industry in the state is ranked #1 for fabricated metal product manufacturing and appliance and component manufacturing. The Aerospace industry is ranked #2 for machinery manufacturing and plastic and rubber product manufacturing. The 7th largest in terms of Wisconsin exports, the industry crossed the $500 million mark in 2016. Today, the industry is becoming quite the favorite for start-ups.

How do you form a Wisconsin business? This is where we can provide the necessary assistance as we are one of the top registered agents in Wisconsin.

Wisconsin LLC Registration and Formation

LLC company formation in Wisconsin is governed by 2011 Wisconsin Code, Chapter 183, Limited liability companies. The procedure for registration and formation of LLC is as follows:

Step#1: Maintain a registered agent

If you are planning to form a Limited Liability Company in Wisconsin then you will be required to continuously maintain a registered agent in the state pursuant to 2011 Wisconsin Code § 183.0105. This law is applicable for domestic limited liability company as well as foreign limited liability company.

We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Wisconsin. We can assist you to form a Wisconsin business LLC.

Step#2: LLC Name Reservation

One of the foremost steps towards company formation in Wisconsin is identifying a name for your business entity. The process is as follows:

1. Identify a unique name for your business entity
2. According to 2011 Wisconsin Code § 183.0103, the name should contain the phrase or words “limited liability company” or the abbreviations “L.L.C.”, or “LLC”.
3. The chosen name should be distinguishable and should not be deceptively similar to the name of any corporation, or limited liability company
4. Conduct a name search here.
5. Apply for reservation of name pursuant to the provisions of 2011 Wisconsin Code § 183.0104 for a domestic LLC name. A foreign LLC will have to register their business name.
6. Submit the form though mail or online with the State of Wisconsin, Department of Financial Institutions, Division of Corporate and Consumer Services along with the applicable fee.
7. An LLC can reserve its name for a period of 120 days.

Step#3: Articles of Organization and Certificate of Registration

If you are planning to form a Wisconsin business LLC then the most important step is to prepare and file the proper documents for a Limited Liability Company. The steps are:

• If you want to register a domestic LLC then you will be required to file ” Articles of Organization” governed by 2011 Wisconsin Code § 183.0202.
• If your business entity is a foreign LLC then you will be required to file an Application for “Certificate of Registration” pursuant to 2011 Wisconsin Code § 183.1004.
• The Articles of Organization and application for Certificate of Registration of domestic and foreign LLC can be filed with the State of Wisconsin, Department of Financial Institutions, Division of Corporate and Consumer Services, in person or online.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the LLC registration.

In case, you have any questions regarding how to form a Wisconsin business, feel free to call us on 702-871-8678.

Wisconsin Corporation Registration and Formation

If you are planning to form a Corporation in Wisconsin then the incorporation will be governed by 2011 Wisconsin Code, Chapter 180 – Business corporations. The procedure for registration and formation is as follows:

Step#1: Maintain a Registered Agent

If you are planning to form a business or professional corporation in Wisconsin then you will be required to continuously maintain a registered agent in the state pursuant to 2011 Wisconsin Code § 180.0501. This law is applicable to domestic as well as foreign corporations.

We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Wisconsin. We can assist you to form a Wisconsin business as we are in compliance with all regulations in the State of Wisconsin.

Step#2: Corporate Name Reservation

In order to form a corporation in Wisconsin, one of the key steps is identifying a name for your business entity. What is the process? The process is as follows:

1. Identify a name for your business entity
2. According to 2011 Wisconsin Code § 180.0401, a corporate name should contain the phrase or words “corporation”, “company”, “incorporated”, or the abbreviations “Corp.”, or “Inc.”
3. The chosen name should be distinguishable and should not be deceptively similar to the name of any limited liability company, limited partnership, or any other corporation
4. Apply for reservation of name pursuant to 2011 Wisconsin Code § 180.0402.
5. A foreign corporation would be required to register their name pursuant to 2011 Wisconsin Code § 180.0403.
6. Submit the form though mail or online with the State of Wisconsin, Department of Financial Institutions, Division of Corporate and Consumer Services along with the applicable fee. A business corporation can reserve its name for a period of 120 days.

Step#3: Articles of Incorporation and Certificate of Authority

If you are planning to form a corporation in Wisconsin, then the most important step is to prepare and file the proper documents for a business corporation. The steps are:

• If you want to register a domestic corporation then you will be required to file “Articles of Incorporation” pursuant to 2011 Wisconsin Code § 180.0202.
• If your business entity is a foreign corporation then you will be required to file an application for ” Certificate of Authority” to transact business in the state pursuant to 2011 Wisconsin Code § 180.1503.
• The application or documentation for registration of a corporation can be filed with the State of Wisconsin, Department of Financial Institutions, Division of Corporate and Consumer Services, in person or online.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the incorporation.

If you have any questions regarding Wisconsin incorporation or LLC formation, you can simply visit the Wisconsin Business formation page.

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