How to Form a Corporation in Wisconsin: A Beginner’s Guide

How to Form a Corporation in Wisconsin: A Beginner’s Guide

Forming a corporation in Wisconsin is a structured process that allows you to establish your business legally. Whether you are a first-time entrepreneur or looking to expand your current business, this guide will walk you through the essential steps to set up your corporation in the Badger State.

1. Choose a Corporate Name

Your first step in forming a corporation in Wisconsin is to select a unique name for your business. The name must comply with Wisconsin naming rules. Here are some guidelines:

  • The name must contain the word “Corporation,” “Incorporated,” or abbreviations like “Corp.” or “Inc.”
  • Your chosen name must not be the same as or too similar to existing corporations in Wisconsin.
  • You can check the availability of your desired name through the Wisconsin Department of Financial Institutions (DFI) website.

2. Appoint Directors

Wisconsin law requires that you appoint at least one director to oversee the corporation. The directors manage the corporation's affairs, so selecting individuals who share your vision is crucial. There are no residency requirements, meaning directors do not need to live in Wisconsin.

3. File Articles of Incorporation

The next step is to file Articles of Incorporation with the Wisconsin DFI. This document officially creates your corporation. You can file online or by mail. The articles must include:

  • The corporation's name
  • The purpose of the corporation
  • The duration of the corporation (usually perpetual)
  • The registered agent's name and address
  • The number of shares the corporation is authorized to issue

The filing fee for Articles of Incorporation is typically $100. Ensure all information is accurate to avoid delays.

4. Create Corporate Bylaws

Corporate bylaws outline how your corporation will operate. Though they are not filed with the state, bylaws are vital for internal management. Bylaws usually cover:

  • Meeting procedures
  • Voting processes
  • The roles and responsibilities of officers and directors

Establishing clear bylaws helps prevent disputes and keep your corporation organized.

5. Hold an Organizational Meeting

After forming the corporation, hold an initial organizational meeting with the board of directors. During this meeting, you can:

  • Adopt the corporate bylaws
  • Appoint corporate officers
  • Issue stock to the initial shareholders

Document the meeting minutes, as these will be important for your corporate records.

6. Obtain Necessary Licenses and Permits

Depending on your business type and location, you may need various licenses and permits to operate legally in Wisconsin. Check with local and state authorities to ensure you have everything required to comply with regulations.

7. Apply for an Employer Identification Number (EIN)

If your corporation will have employees or operate as a partnership, you’ll need to obtain an Employer Identification Number (EIN) from the IRS. You can apply for an EIN online, which is free and straightforward. This number is essential for tax reporting and other business activities.

8. Comply with Ongoing Requirements

After establishing your corporation, it’s crucial to remain compliant with Wisconsin state laws. This includes:

  • Filing an annual report with the Wisconsin DFI
  • Paying the annual franchise tax
  • Maintaining accurate corporate records

Staying on top of these requirements will help keep your corporation in good standing.

Conclusion

Forming a corporation in Wisconsin is an achievable task with the right guidance and preparation. By following these steps, you can lay a solid foundation for your business success. Remember to seek professional legal or financial advice when necessary to ensure that you navigate the complexities of corporate formation properly.