There are a number of different types of Wisconsin LLC Taxes. These include the following:
- Federal Income Tax: LLC members pay federal self-employment tax (15.3%) on their share of the LLC’s profits. This covers Social Security and Medicare. You’ll also pay income tax based on your tax bracket.
- Wisconsin State Income Tax: Wisconsin has a graduated income tax rate, ranging from 3.54% to 7.56%, depending on your filing status and income.
- Other Taxes: Depending on your business activity, you might also be responsible for Wisconsin sales tax, unemployment taxes, and other fees.
In Wisconsin, LLCs are required to pay state business taxes. These are a type of income tax that is levied on the company’s profits. They are typically filed with the Department of Revenue. In addition, if the LLC has employees, it must obtain a federal Employer Identification Number (EIN) from the IRS. This nine-digit number is similar to a Social Security number for businesses and helps the IRS identify your company for tax purposes. You may also need an EIN if you plan to open a bank account for your business.
Wisconsin LLC Registration
In addition, a Wisconsin LLC must register for any industry-specific taxes that apply to it. In many cases, these are imposed by local governments to help fund local services. For example, excise taxes may be levied on alcoholic beverages, vapor products, and motor fuel.
The LLC must also register its name with the state and appoint a registered agent. The registered agent is the person or entity that receives service of process and legal documents on behalf of the LLC. This person or company must be located in Wisconsin and available during normal business hours.
Wisconsin LLC Articles of Organization
Preparing articles about the organization is one of the first steps in forming a Wisconsin LLC. This document outlines the basics of your company and must be filed with the Department of Financial Institutions before you can begin operations in the state.
The organization’s articles must include the company name, address, management structure, and other important information. You must also designate a registered agent. This can be a member of the LLC, a friend or family member, or a professional registered agent service.
Most Wisconsin LLCs are taxed as pass-through entities, meaning that business profits pass through to the owners, who then report them on their personal income tax returns. However, you can elect to have your LLC taxed as a corporation by filing an extra form with the IRS.