The Legal Steps to Take Before Starting a Corporation in Wisconsin

Starting a corporation in Wisconsin involves several legal steps that you need to follow to ensure compliance with state regulations. By taking the right steps, you can set your corporation up for success while minimizing potential legal issues in the future.

1. Choose a Unique Corporation Name
Before filing the necessary paperwork, you need to choose a unique name for your corporation. Ensure that it is not already in use by another business entity in Wisconsin. You can check the availability of your desired name by searching the Wisconsin Department of Financial Institutions (DFI) business entity database.

2. Designate a Registered Agent
Every corporation in Wisconsin is required to have a registered agent. This individual or business entity will be responsible for receiving legal documents and government correspondence on behalf of your corporation. The registered agent must have a physical address in Wisconsin, which can be either a residence or a registered office.

3. Prepare and File Articles of Incorporation
To officially register your corporation, you must file Articles of Incorporation with the Wisconsin DFI. This document includes important details such as the corporation's name, the registered agent’s information, the purpose of the corporation, and the number of shares authorized. There is a filing fee that must be paid at this time. You can file online, by mail, or in person.

4. Create Corporate Bylaws
After your corporation is formed, you should draft corporate bylaws. These are internal rules that govern the management of your corporation, including the roles of directors and officers, the process for holding meetings, and how decisions are made. While bylaws are not required to be filed with the state, they are crucial for organizational structure and can help avoid potential disputes in the future.

5. Hold an Organizational Meeting
Following the creation of your bylaws, it’s important to hold an organizational meeting with your initial board of directors. During this meeting, directors can adopt the bylaws, appoint officers, and address other essential business matters. Keeping detailed minutes of this meeting is important for maintaining corporate records.

6. Obtain Necessary Permits and Licenses
Depending on the nature of your business, you may be required to obtain specific permits and licenses at the local, state, and federal levels. Research what is necessary for your type of business, as failure to comply with licensing requirements can result in fines or legal problems later on.

7. Apply for an Employer Identification Number (EIN)
If your corporation plans to hire employees or has multiple owners, you will need to apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This number is essential for tax purposes and is often required when opening a business bank account.

8. Comply with State and Federal Tax Requirements
As a corporation, you will need to comply with various tax obligations. Wisconsin corporations are subject to state taxes, including corporation franchise taxes. Seek advice from a tax professional to ensure you are aware of all tax requirements and deadlines.

9. Maintain Corporate Compliance
After your corporation is established, ongoing compliance with state regulations is crucial. This includes filing annual reports with the Wisconsin DFI, updating any changes to your registered agent or business address, and maintaining accurate financial records.

By following these legal steps, you will be well on your way to successfully starting and operating a corporation in Wisconsin. Each step is vital to ensure that your corporation is compliant and well-organized, setting the foundation for growth and sustainability in your business endeavors.