A Guide to Starting a Business in Wisconsin

If you are starting a business in Wisconsin, you have come to the right place for a quick overview.

Developing Your Idea

Explore different business ideas and weigh their pros and cons.
Consider industries such as agriculture, manufacturing, eCommerce, tourism, healthcare, fitness, and home renovation.
Determine the value or unique service you plan to offer
Pursue an idea that aligns with your interests, skill set, and passions, and develop a business plan to outline your strategy and goals. A business plan template can help you effectively organize and present your business idea.

Setting Up Your Business Entity

Setting up your business entity and determining the legal structure is crucial in starting a business in Wisconsin. This involves choosing the proper business structure, registering your business with the state, and obtaining necessary licenses and permits.

Registering and Licensing Your Business

Register your business entity with the Wisconsin Department of Financial Institutions (DFI)
Get an employer identification number (EIN) with the IRS.
Register for taxes, understand business license requirements, and obtain necessary licenses and permits.
You must check for a federal employer identification number (EIN) to open bank accounts, handle payroll, and file taxes.
Apply online for your EIN through the IRS website or fill out and mail the form.
Consult the Wisconsin Department of Revenue for information on state tax registration and compliance requirements. State tax registration is crucial for complying with Wisconsin tax laws.

Obtaining Licenses and Permits

Obtaining the necessary licenses and permits is crucial in starting a business in Wisconsin. The type of licenses and permits required will depend on the type of business, its location, and the services it provides. Here are some steps to follow:

Determine the Necessary Licenses and Permits: Research the licenses and permits required for your business type and location. You can check with the Wisconsin Department of Safety and Professional Services, the Wisconsin Department of Natural Resources, and your local government to determine the necessary licenses and permits.
Apply for Licenses and Permits: Once you have determined the necessary licenses and permits, you can apply through the relevant state or local government agencies. You may need to provide documentation, such as your business plan, financial statements, and proof of insurance.
Pay the Required Fees: You must pay the required fees for licenses and permits. The costs vary depending on the type of license or permit and the agency issuing it.
Maintain and Renew Licenses and Permits: Once you have obtained the necessary licenses and permits, you must maintain and renew them as required. This may involve submitting annual reports, paying renewal fees, and updating your business information.

Example of Standard Licenses and Permits Required for Businesses in Wisconsin

Sales Tax Permit: If your business sells taxable goods or services, you must obtain a sales tax permit from the Wisconsin Department of Revenue.
Employer Identification Number (EIN): If your business has employees, you must obtain an EIN from the Internal Revenue Service (IRS).
Business License: Many cities and counties in Wisconsin require businesses to obtain a business license. The requirements vary depending on the location and type of business.
Health Department Permit: If your business handles food or provides healthcare services, you may need to obtain a permit from the local health department.

Following these steps and ensuring you have all the necessary licenses and permits will allow you to operate your business legally and smoothly in Wisconsin.

Setting Up Your Business Finances and Business Bank Account

Open a bank account to separate your finances from your business finances.
Consider opening a separate business account to make tracking your income and expenses more manageable.
Apply for a business credit card to isolate business expenses, build up credit for your company, and improve financial management.
Understand the importance of keeping your assets separate from your business assets.

Opening a Business Bank Account

Opening a bank account is crucial in separating your personal and business finances. This account will help you manage your business income and expenses, making it easier to track your financial performance and make informed decisions. To open a bank account in Wisconsin, you must provide your business name, address, and Employer Identification Number (EIN). You may also need to provide additional documentation, such as your business license and articles of incorporation.

Choosing a bank that offers business-friendly services, such as online banking, bill pay, and account management tools, is essential. Consider a bank that offers specialized services to small businesses, such as business loans and credit cards.

Some popular banks for business accounts in Wisconsin include:

Wells Fargo
Chase Bank
Bank of America
US Bank
Associated Bank

When opening an account, ask about any associated fees, such as monthly maintenance, overdraft, and ATM fees. It would also help to ask about minimum balance requirements and their impact on your account.

Choosing a Business Structure and Location

Decide on a business structure for your new venture, such as a sole proprietorship, partnership, limited liability company (LLC), corporation, or nonprofit. Understanding different business structures is crucial as they impact legal liability, taxation, and operational requirements.
If you provide professional services, consider forming a service corporation that offers unique liability protection and compliance benefits.
Consider liability protection, tax implications, and ownership structure when deciding on your business structure.
Choose a unique business name that has yet to be used by another company in Wisconsin.
Ensure the name is easy to understand and pronounce and accurately represents the products or services you plan to offer
Check local zoning laws and regulations to ensure your business type is permitted in the chosen area. Consulting with a commercial real estate agent can help you find a location that meets your business needs and complies with local zoning laws.

Finding a Business Location

Finding the right location for your business is crucial in the startup process. When choosing a location, consider the following factors:

Accessibility: Ensure the location is easily accessible by car, public transportation, or on foot. This will make it convenient for both customers and employees.
Visibility: A visible and easy-to-find location can attract more foot traffic and increase brand awareness.
Competition: Analyze the proximity to competitors. Being close to competitors can be beneficial if it creates a business hub, but you must differentiate your business to stand out.
Zoning Laws: Check local laws and regulations to ensure your business type is permitted in the chosen area. This is particularly important for specific business structures like limited liability companies (LLCs) or service corporations.
Cost: Evaluate renting or buying the location, including additional fees or expenses. Ensure it fits within your budget without compromising other aspects of your business.

When searching for commercial property, consider the area’s potential to become a business hub, which can attract more customers and create networking opportunities.

In Wisconsin, you can search for available commercial properties through online listings or by contacting a commercial real estate agent. Coworking spaces or incubators, which offer shared workspaces and startup resources, are also viable options.

Additional Considerations

Proximity to Suppliers and Vendors: Being close to your suppliers can reduce shipping costs and improve supply chain efficiency.
Parking and Loading Areas: Ensure adequate parking for customers and employees and loading/unloading areas for deliveries.
Security and Safety: Look for locations with reasonable security measures and a safe environment.
Amenities: Check for amenities like internet, utilities, and maintenance services.
Potential for Expansion: Choose a location that allows for future growth and expansion of your business.

Once you have identified a potential location, visit it in person to assess the surroundings and possible challenges. You should also consult the Wisconsin Department of Financial Institutions and other relevant agencies to ensure your location meets all requirements.

By carefully considering these factors and conducting thorough research, you can find a business location that meets your needs and will help your business succeed.

Registering for Taxes

To register for taxes, you can use the Wisconsin One Stop Business Portal, which allows you to complete the registration process online. You will need to provide information about your business, including:

Business name and address
Business structure (e.g., sole proprietorship, limited liability company, corporation)
Federal Employer Identification Number (FEIN)
Types of taxes you need to register for (e.g., sales tax, income tax, unemployment insurance tax)

Ensuring tax compliance is essential to avoid penalties and fines.

Use the Wisconsin Department of Revenue’s Interactive Tax Finder to learn more about the tax credits available to your business.

Getting Insured and Protected

Get insurance coverage to protect your business and personal assets from unexpected events.

Consider getting general liability insurance, cyber liability insurance, and other insurance coverage.

Consult a licensed insurance agent to determine which types of insurance you should get.

Understand the importance of having insurance coverage to protect your business and personal assets.

Building an Online Presence

Create a business website to get your brand and service online.
Use an eCommerce website builder to create a website and promote your product or service.
Establish credibility and win over prospective customers’ confidence.
Develop an internet presence to establish an identity online and invest in your business’s future development.

Staying Compliant and Up-to-Date

Stay organized and keep track of your filing requirements and tax deadlines to avoid penalties or fines.
File annual reports to ensure you are up-to-date for tax purposes.
Understand the importance of staying compliant with Wisconsin filing and tax requirements.
Use the Wisconsin Department of Revenue’s Interactive Tax Finder to learn more about the tax credits available to your business.

Launching and Growing Your Business

Launching and growing your business requires careful planning and execution. Here are some tips to help you get started:

Develop a Business Plan: A business plan will help you outline your business goals, target market, and financial projections. This roadmap is essential for guiding your business decisions and securing funding.
Build a Strong Team: Hire employees who share your vision and are committed to helping your business succeed. A dedicated team can drive your business forward and help you achieve your goals.
Develop a Marketing Strategy: Create a marketing plan that outlines your target audience, marketing channels, and budget. Effective marketing is crucial for attracting customers and growing your business.
Monitor Your Finances: Monitor your business income and expenses to stay on track financially. Regular financial monitoring helps you make informed decisions and maintain profitability.
Seek Professional Advice: Consider hiring a business consultant or accountant to help you navigate the challenges of starting and growing a business. Professional advice can provide valuable insights and help you avoid common pitfalls.

Some additional resources to help you launch and grow your business in Wisconsin include:

The Wisconsin Small Business Development Center (SBDC) Network: The SBDC Network provides free business consulting and low-cost training to entrepreneurs and small business owners.
The Wisconsin Department of Commerce offers various resources and programs to help businesses start and grow in Wisconsin.
The Wisconsin Economic Development Corporation (WEDC) provides financial assistance and other resources to help businesses start and grow in Wisconsin.

By following these tips and seeking additional resources, you can set your business up for success and achieve your goals in Wisconsin.

Seeking Additional Help and Resources

Wisconsin’s One-Stop Business Portal provides in-depth guidance and information on business registration, business taxes, and unemployment insurance.
Check out the Open My Business section under “Resources” for more information.
Consult a lawyer or accountant to help you decide on your business structure and other business-related matters.
Research and choose a reputable registered agent to handle your business’s paperwork
When starting a business in Wisconsin, obtain a business license to comply with local regulations.

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