Learn about the annual report and tax filing obligations for Wisconsin limited liability companies.
If you want to form and operate a Wisconsin limited liability corporation (LLC), you’ll need to prepare and submit a number of paperwork with the state. This article discusses the most significant Wisconsin LLC continuing reporting and state tax filing obligations.
Table of Contents
Report Annual
Your LLC must submit an annual report with the state of Wisconsin. Annual report forms or alerts are automatically emailed to the registered agent and office of your LLC. You may submit your annual report online at the DFI website. The annual report is due at the conclusion of the calendar quarter following the anniversary month of the founding of your LLC. For instance, if your LLC was created on July 15, your report is due by September 30. s p s p s p s p s p s. (Non-Wisconsin LLCs are charged a higher rate.)
State Corporation Tax
Most LLCs are pass-through tax corporations when it comes to income taxes. In other words, the burden for paying federal income taxes is passed via the LLC to the individual LLC members. LLCs do not pay income taxes by default; only its members do. Some states charge LLCs a separate tax or fee for the privilege of conducting business in their jurisdiction. Wisconsin, on the other hand, is not one of those states.
However, in certain situations, the owners of an LLC elect to have their firm taxed as if it were a corporation. This decision is made by submitting IRS Form 2553 to the IRS. (The form is available on the IRS website.) When an LLC elects to be taxed as a corporation rather than as a pass-through entity, the firm must submit a separate tax return. Wisconsin, like almost every other state, taxes corporate revenue. This is known as a franchise tax in Wisconsin. The franchise tax in Wisconsin is a flat 7.9% of net income. The tax is due to the Department of Revenue in the state (DOR). To pay the tax, use Form 4 of the state’s company income tax return.
Employer Taxes in the State
Do you have workers in your LLC? If this is the case, you must pay employer taxes. Some of these taxes are paid to the federal government (the IRS) and are not addressed in this section. (However, it is important to understand that federal employer tax duties begin with getting a federal employer identification number (EIN).) Wisconsin employers, on the other hand, must pay state taxes.
To begin, you must withhold and pay employee income taxes to the DOR. Begin by registering your company with the DOR, either online or in print form (Form BTR-101). After registering, you must submit withholding taxes on a regular basis (for example, quarterly) using Form WT-6. Each year, you’ll also need to utilize a form of Form WT-7 to reconcile your LLC’s tax withholding. Check the DOR website for further information, including on online filings.
You’ll also need to register to pay state unemployment insurance (UI) taxes. Wisconsin’s Department of Workforce Development is in charge of these taxes (DWD). These taxes may be registered for online or by utilizing Form UCT-1-E. Then, each quarter, utilize Forms UCT-101 and UC-7823-E to record your salary and pay your unemployment insurance taxes. Check out the DWD website for further information, including on online filings.
Taxes on Sales and Use
If your LLC sells items to clients in Wisconsin, you must collect and remit sales tax. This implies you’ll have to register with the Department of Revenue for this reason and then make periodic sales tax payments for products sold. You may sign up online or by mailing Form BT-101. After you register, you will get a seller’s permit. Then, on a regular basis, you must file sales tax returns with the DOR. This may be done on paper (Form ST-12) or online.
Other States Registration
If you want to do business in states other than Wisconsin, your LLC may need to be registered in any or all of those states. The exact states concerned will determine if you are needed to register: each state has its own regulations for what defines conducting business and whether registration is required. For registration reasons, having a physical presence (a business location) in a state, recruiting personnel in a state, or soliciting business in a state (through telephone, print advertisements, mail, or the Internet) are sometimes considered conducting business. Obtaining a certificate of authority or comparable document is normally required for registration.