If you are starting a business in the US state of Wisconsin, your first step is to register it as a legal entity with the state authority, and next obtain the tax ID number (EIN) for tax purposes and others.
Now, if you are wondering how to do all this, worry not, we have got it all covered in the article below. You can learn where to register your business in Wisconsin and how to obtain an EIN.
Register your Business in Wisconsin
The Wisconsin state business landscape is improving, especially businesses related to biohealth, renewable energy, agriculture, and more. So, if you are also thinking of setting up a business in a state, there are a few things that you should know to ensure smooth business operations.
Your first task is to get your business a legal identity, that is, register it with the state authority, the Wisconsin Department of Financial Institutions. However, for certain businesses like partnerships or sole proprietorships, you need to register with the Department of Revenue.
The government has initiated the Wisconsin One Stop government portal to streamline the business registration and compliance for businesses as per the state rules.
Now that you know where to register your business in Wisconsin, you should know what you would need and what you should do before you move to registration:
- You should name your business as per the Wisconsin DFI naming criteria.
- You should select your business structure, such as partnerships, corporations, LLCs, sole proprietorships, etc.
- You should gather all the owner details, from tax ID to involvement in business.
What will be the cost to register a business in Wisconsin?
If you wish to register your business in Wisconsin, you should know how much it could cost you to manage your finances. You should know that a sole proprietorship does not need to register with DFI; however, other business models will be registered with the following fees:
- LLC through One Stop Business portal or mail for $130 + $1 for portal fees and $170 if it is done offline.
- Limited partnership with DFI by online or by mail can cost you around $70
- Business corporations and statutory close corporations, either through the One Stop Business portal or by mail, can cost you around $100 + $1 portal fee.
How to sign up for the Wisconsin Portal as a business?
You would need the Wisconsin Access Management System ID to create an account on the portal. And once you have the ID, you can follow the steps below to complete your registration:
- On the Wisconsin One Stop Business portal, click the “Create My Business.”
- Next, log in to the portal through WAMS ID and select your business structure, and start entering your business details.
- Next, register with state agencies automatically shown on the portal as per your business structure.
- Next, pay the registration fee on the portal as per your business and complete the registration.
How to obtain the Tax ID (EIN) for your business in Wisconsin?
Now, your next task will be to obtain your tax ID (EIN) number from the IRS for business tax and other business operations. You can obtain the unique nine-digit number (EIN), which will be the financial identity of your business, through the following methods:
- Online: You can obtain an EIN after you register your business with the state through the IRS EIN Assistant online tool without paying any charges. You can navigate through the EIN Assistant tool in the following steps:
- Visit the EIN Assistant page and click the Continue Application option.
- After that, you should enter your company’s information and choose the type of business entity.
- After entering your company’s information, input the information of the person in charge of the resources and assets (responsible party), such as your SSN or ITIN..
- After that, review your EIN application and submit it without wasting time, as the window closes after 15 minutes of inactivity.
- Form SS-4: You can fax the IRS EIN application form SS-4 at 855-641-6935 or mail it to the postal address: EIN Operation, Cincinnati, OH 45999.
Important Note:
- If you are someone living outside the US, and this is not your principal business, you cannot apply online, as the application window is open through fax, mail, or phone only.
What are the uses of an EIN for businesses?
The tax ID (EIN) number comes in handy for following multiple business purposes, so if you’re starting a business in Wisconsin, you should definitely obtain one if you do not need it for the time being:
- Filing your federal or state taxes
- Opening a bank account in your business name
- Hire employees and manage their payroll taxes or withhold taxes,
- Paying excise & customs duty, alcohol, tobacco, and other taxes.
- Obtaining a Business Licence
- Managing business operations
When you open a business, there is a lot of paperwork, and obtaining the tax ID or registering your business with the state authority should be your first step to manage your business legally.
