How to Start a Business in Wisconsin

Starting a business can be a daunting task, but with the right knowledge and preparation, it can be an exciting and rewarding experience. If you’re looking to start a business in Wisconsin, you’ll need to understand the state’s regulations and requirements.

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

Choose a Business Structure

When starting a business in Wisconsin, the first step is to choose a business structure. The most common types of business structures are sole proprietorship, partnership, limited liability company (LLC), and corporation. Each type of business structure has its own advantages and disadvantages, so it is important to research each option carefully. For example, a sole proprietorship is the simplest and least expensive type of business to set up, but it does not provide any personal liability protection for the owner. On the other hand, a corporation provides the most protection for the owner, but it is more expensive and complex to set up.

Obtain Necessary Licenses and Permits

Once you have chosen a business structure, the next step is to obtain the necessary licenses and permits. Depending on the type of business you are starting, you may need to obtain a variety of licenses and permits from the state, county, and/or local government. For example, if you are starting a restaurant, you will need to obtain a food service license and a liquor license. Additionally, you may need to obtain a business license, zoning permit, and/or building permit.

Register Your Business Name

Once you have obtained the necessary licenses and permits, the next step is to register your business name. In Wisconsin, you must register your business name with the Wisconsin Department of Financial Institutions. This process is known as “filing a fictitious name statement” and it must be done before you can open a business bank account or file for tax identification numbers.

Open a Business Bank Account

Once you have registered your business name, the next step is to open a business bank account. It is important to open a business bank account to keep your personal and business finances separate. Additionally, having a business bank account will make it easier to track your business expenses and income. When opening a business bank account, you will need to provide your business name, business address, and tax identification number.

File for Tax Identification Numbers

The final step in starting a business in Wisconsin is to file for tax identification numbers. This includes filing for an Employer Identification Number (EIN) with the Internal Revenue Service (IRS) and a Wisconsin Tax Identification Number (WTIN) with the Wisconsin Department of Revenue. An EIN is required for businesses that have employees, while a WTIN is required for businesses that have employees and/or make taxable sales. Additionally, you may need to register for other state and local taxes, such as sales tax, income tax, and/or property tax.

Additional Resources

Wisconsin Department of Financial Institutions

The Wisconsin Department of Financial Institutions (DFI) is a great resource for anyone looking to start a business in Wisconsin. DFI provides guidance and resources to help entrepreneurs understand the regulations and requirements of starting a business in Wisconsin. They provide information on the different types of business structures, such as sole proprietorships, partnerships, and corporations. They also provide information on how to obtain the necessary licenses and permits to operate a business in Wisconsin. Additionally, DFI offers resources to help entrepreneurs understand the legal requirements of starting a business, such as filing for a business name, registering a business with the state, and obtaining a business license.

Wisconsin Department of Revenue

The Wisconsin Department of Revenue (DOR) is another important resource for those looking to start a business in Wisconsin. DOR provides information on the different types of taxes that businesses must pay, such as income taxes, sales taxes, and property taxes. They also provide information on how to register for a tax identification number, which is necessary for filing taxes. Additionally, DOR provides resources to help entrepreneurs understand the different tax credits and deductions that are available to businesses in Wisconsin.

Small Business Administration

The Small Business Administration (SBA) is a great resource for entrepreneurs looking to start a business in Wisconsin. The SBA provides information on the different types of loans and grants that are available to businesses in Wisconsin. They also provide information on how to apply for these loans and grants, as well as how to use them to start and grow a business. Additionally, the SBA provides resources to help entrepreneurs understand the different regulations and requirements of starting a business in Wisconsin. They also provide information on how to access business counseling and mentoring services to help entrepreneurs succeed.