If you’re a new business owner looking for the protection a Limited Liability Company LLC entity may provide, albeit don’t want to pay someone else to create one for you, the following instructions will show you step by step how to get started, and lead you all the way to the finish, and then, even show you how to get a tax ID number, called a Federal Employer Identification Number (EIN).
If you want, you can also have 1 Reason do the work for you at a cost that’s less than most. Most people will find that with a little time invested along with reading our step-by-step instructions, you can get the job done on your own.
For those ready to do it alone, just follow the instructions below, and within a week you will be the proud new owner of Wisconsin’s newest LLC.
Wisconsin charges about $140 (at the time of editing) for the first year filing fee to create an LLC. Other choices are available including a LLP which is a limited liability partnership, and a corporate entity as well. For most smaller operations, an LLC makes the most sense.
The Wisconsin Department of Financial Institutions is the state department that facilitates new and existing companies and has a PDF schedule of fees and you can find it by CLICKING HERE
Before filing for a company, be sure to perform a name check to ensure the name you want is available and is one that won’t be easily confused with another company that may be in bad standing. You can check on your name by CLICKING HERE.
To get a form or to file for your new limited liability company CLICK HERE. If you file online, you should have your newly minted LLC in hand within a few days unless there’s a problem, albeit most of the time, the time will be well under five days (the maximum the state is allowed at the time of this post).
Your next step is to receive the equivalent of a “social security” number for your new business, called a Federal Employer Identification Number (EIN). Even if you don’t want to hire employees, you will want an EIN because you will need it for so many things including banking and taxes.
You can get an EIN by CLICKING HERE.
Your next step with your brand new LLC is the accounting. If you’re not using an accountant, which I recommend for any new business owners, is to setup an accounting system. 1 Reason can recommend bookkeepers for you if you don’t have one in mind. We also perform some bookkeeping services for certain industries.
Give us a call if you’re interested and we’ll discuss what your options are. If you want an online accounting solution that is free and easy to get started with, Wave online accounting is a great place to do-it-yourself. If you want an online accounting solution that is free and easy to get started with, Wave online accounting is a great place to do-it-yourself. Another viable and appropriate small business alternative is FreshBooks cloud accounting, which offers a free trial and free invoice templates. The great thing about having invoice templates is you don’t have to spend time reinventing the wheel. Pick a template that works for your business, and you’re done, so you can move on to the next thing on your long list of things to do.
Have questions? Give us a call and we’ll try our best to provide strategies to help you figure out what solutions are available and the pros and cons of each.
Lastly, I want to emphasize that simply starting a LLC, LLP, and/or corporation doesn’t mean you’re forever out of the woods when it comes to personal or business liability. A common mistake that many make is not treating the other entity as the separate entity it’s supposed to be. If you co-mingle funds and assets, you can jeopardize the integrity of the liability wall you tried to create to begin with. A term no limited liability entity owner ever wants to hear is “piercing the corporate veil”.
Piercing the corporate veil is a term used to describe the process an attorney uses to get at personal assets because there’s no legal difference between an owner and the limited liability entity created. Co-mingling funds is one of the most common ways to lose your valuable and expensive protection, so don’t do it. Seek professional advise because a few dimes today may save you dollars later.
There are four different ways to tax your LLC, and the most common way is to use it as a pass-through type of entity so all the profits or losses pass through and are reported on the owner’s tax return.