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Doing business in

Wisconsin

Navigate Wisconsin’s business landscape with ease—whether you’re incorporating, expanding, or managing tax compliance. Commenda helps you stay ahead with automated solutions for incorporation, compliance, and tax filings.
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wisconsin

Business Overview

Wisconsin maintains strong manufacturing traditions while developing new strengths in healthcare, technology, and agriculture. The state offers competitive business costs, specialized workforce development, and research institutions supporting innovation. Its location provides access to Great Lakes and Mississippi River trade routes.

Key Facts & Figures

Category Details
Capital Madison
Major Cities Milwaukee, Madison, Green Bay, Kenosha, Racine
State Sales Tax Rate 5%
Local Sales Tax Rate Up to 1.5% additional local taxes
Corporate Income Tax 6.5% flat rate
Physical Nexus Threshold Physical presence through employees, property, or inventory
Economic Nexus Threshold $100,000 in annual sales

Did you know?

Wisconsin is a leader in manufacturing, dairy production, and emerging biotechnology sectors.

Setup & Compliance

Wisconsin offers streamlined business registration with moderate regulatory requirements.

Wisconsin Business Setup Process:

  1. Choose Your Business Structure: Consider tax implications and liability protection needs.
  2. Register Your Business: File formation documents with the Wisconsin Department of Financial Institutions.
  3. Register for Tax Accounts: Register with the Department of Revenue for sales tax and withholding.
  4. Obtain Required Licenses: Research and secure necessary state and local business licenses.
  5. Register as an Employer: Register with the Department of Workforce Development if hiring employees.

Ongoing Compliance Requirements:

  • Annual Reports: Wisconsin entities must file annual reports with the Department of Financial Institutions.
  • Sales Tax Collection: Collect and remit 5% state sales tax plus applicable local taxes.
  • Corporate Income Tax: Corporations pay 7.9% corporate income tax.
  • Economic Development Surcharge: Corporations with gross receipts over $4 million pay surcharge.
  • Professional Licensing: Various professions require specialized licenses through state boards.

Hiring & Payroll

Wisconsin provides a balanced approach to employment regulations.

Wisconsin Payroll Requirements:

  • Unemployment Insurance: Rates from 0.05% to 7.7% on first $14,000 of wages.
  • State Income Tax Withholding: Required with progressive rates.
  • Workers’ Compensation: Required for most employers.

Wisconsin Employment Laws:

  • Minimum Wage: Follows federal minimum wage ($7.25/hour).
  • No state-mandated paid sick or family leave.
  • New hire reporting within 20 days.
  • Final paycheck due on next regular payday.
  • Wisconsin is an at-will employment state with right-to-work laws.

State Incentives

Wisconsin offers comprehensive economic incentives to support business growth and innovation.

Key Business Incentives:

  • Economic Development Tax Credit: Incentives for job creation and investment.
  • Wisconsin Economic Development Corporation: Strategic business support.
  • Research and Development Tax Credit: Supports innovative company development.

Small Business & Startup Support:

  • Wisconsin Small Business Development Center: Comprehensive business resources.
  • Minority Business Development Program.
  • Technology Commercialization Grants.

Regulatory Considerations

Wisconsin provides a balanced regulatory environment supporting diverse business sectors.

Key Business Regulations:

  • Data Privacy: Laws protecting consumer and business information.
  • Environmental Compliance: Regulations for manufacturing and agricultural industries.
  • Professional Licensing: Mandatory for various service professions.

Additional Regulatory Areas:

  • Manufacturing Sector Compliance.
  • Agricultural Innovation Regulations.

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