Guidelines in Forming Your Business in Wisconsin
If you are from Wisconsin and thinking of starting your own business, you are on the right track. Starting your own business could be the best decision you will ever make.
Ranking fifth across the country in terms of economic health, Wisconsin offers a multitude of opportunities for small businesses, with tax incentives, access to support agencies, and a renewed commitment to support entrepreneurs and startups.
A Hub for Startups
Aside from a healthy economy, Wisconsin is also considered the perfect hub for startups and for developing small businesses. Every year, there are an estimated 40,000 small businesses that Wisconsin residents create. In addition, these businesses are well-supported by Small Business Development Centers (SBDCs) to help them succeed.
Furthermore, Wisconsin’s Small Business Development Centers are generously supported by the federal and state. With all these benefits, it is no wonder that the state of Wisconsin has increasingly become famous for would-be business owners.
Here are 6 steps you can follow in forming a business in Wisconsin:
Pick a business idea and create a business plan
Choose a business idea that is aligned with your interest and personal goals. Then, gauge the demand for the service or product you would like to offer. Some trending business ideas in Wisconsin include clothing, entertainment, transportation, and food. Draft a business plan to outline your next steps. Make sure to create a well-crafted business plan as it will be an important factor to your business’ success.
Determine your business structure
For start-ups and small businesses, forming an LLC is the best option. In doing so, you must also know how much does an LLC cost in Wisconsin to have a better idea of the fees you need to pay. In addition, the Articles of Organization is required to be filed with the Wisconsin Department of Financial Institutions. The filing fee for Articles of Organization range from $130-$170 depending on the filing method used.
Register your business name
The next step you need to accomplish is registering your business name. For an LLC, your business has to be uniquely named. Before settling on a name, make sure the name you choose is not registered to another business.
Apply for an EIN (Employer Identification Number)
Also referred to as the Federal Employer Identification Number, the EIN is a tax identification number issued by the Internal Revenue Service (IRS) used for filing tax returns, paying payroll taxes, and more. While most LLCs with employees are required to register for an EIN, single-member LLCs with no employees are not required to do so.
Open business bank accounts
While banks have different approaches when dealing with business bank accounts, LLCs must submit Articles of Organization, Operating Agreement, Certificate of Good Standing, EIN, and the owner’s driver’s license to open an account.
Acquire permits and licenses
In Wisconsin, businesses need to register for and comply with several local, federal, and state rules and regulations. The most common licenses include business licenses, seller’s permits, and professional licenses. While there is no general license in Wisconsin, many of its cities require a business license to operate.
Poised with a healthy economy and full support of the state government, Wisconsin is one of the best places for an aspiring business owner. If you happen to seek the best location for your entrepreneurial debut, Wisconsin may just be the place for you. Furthermore, with the state’s “can-do” mindset and friendly atmosphere, it is a place where a would-be business owner can find growth.