Securing the right licenses for your Wisconsin business is an important step along the road to opening your business, but it can be tricky to determine which licenses are required for your organization. While the application process is relatively simple, you need to do your research to know exactly where to apply and how.
Do you need a business license in Wisconsin?
Like many states, Wisconsin does not have a general business license covering all industries. That being said, there’s a good chance you’ll need to secure some kind of license depending on your business structure and the industry in which you plan to operate.
Wisconsin state
Most new Wisconsin businesses will need to secure some sort of state licensing or registration with the Wisconsin Department of Revenue before they can begin operating. How you register your business will primarily depend on the way it is structured.
If your business is a sole proprietorship, a partnership, a nonprofit organization, or an existing, foreign limited liability company (LLC) or corporation, you can register your business directly with the Wisconsin DOR.
If you are planning to start a new LLC in Wisconsin, a business corporation, or certain types of private corporations, you can register online using Wisconsin’s One Stop Business Portal instead.
If none of these structures applies to your Wisconsin business, it’s best to check with the Wisconsin Department of Financial Institutions to determine whether your business requires a license to legally operate within the state.
Local
Many of Wisconsin’s counties and municipalities have additional business license requirements based on location and industry. These local ordinances can vary broadly from place to place, making it difficult to identify all the necessary licenses your business might need to hold before opening its doors.
Your city hall or county clerk’s office can be an invaluable resource in identifying and obtaining local licenses and permits. Contact your local office if you have additional questions about area-specific licensing requirements.
Federal
Federal business licenses are associated with specific industries, ranging from aircraft repair to firearm manufacturing to commercial fishing. These licenses are administered by the relevant federal government departments and, in some cases, may carry highly restrictive requirements or fees.
The United States Small Business Administration maintains a list of federally regulated businesses, which can be used to help determine what licenses your business might need, if any. For more information on specific federal licenses, contact the corresponding federal department or agency.
How to get a business license in Wisconsin in 5 steps
The process of securing licenses for businesses operating in Wisconsin is not difficult, but it can sometimes be a challenge to track down all the necessary applications and ensure your business is fully compliant with local, state, and federal guidelines.
Step 1: Choose a name and structure
Before you apply for any licenses or permits, you’ll want to finalize important details about your organization like the business name, business plan, structure, and formational documents. This information will be necessary while completing your application and in most cases will determine what licenses you need, if any.
Step 2: Review legal and financial obligations
Depending on the size and structure of your company, there may be important tax obligations your business must navigate. If you plan to hire employees, for instance, you must register an employer identification number with the IRS.
If you are starting an organization making retail sales, you’ll need to register to collect sales tax through the Wisconsin Department of Revenue. This is also a good time to register for the Wisconsin business tax if you haven’t already done so.
Step 3: Secure your state license
Once your business details are finalized and you’ve completed your tax paperwork, you can apply for your Wisconsin business license through the appropriate state service based on the structure of your business entity. In some cases, this may be a very straightforward process via an online application portal, but other licenses may be more complicated or require more strict criteria to be met.
Step 4: Research local permits
Which sorts of local permits are required for your business will depend largely on where you conduct your business operations and the nature of your industry. Be sure to contact each pertinent local city hall or county clerk’s office for more information about local requirements, especially if you plan to operate in multiple cities or towns. Different places may have significantly different requirements with which you’ll have to comply.
Step 5: Apply for federal licenses
Federal licenses are handled by federal departments and agencies associated with the industry being regulated. While many businesses require no federal licenses to operate, you should double-check to confirm whether your business is required to apply for any before you begin operating.
After getting your Wisconsin business license
Once you’ve received your license, there are often ongoing requirements associated with keeping the license in good standing. Retail businesses, for instance, are often required to publicly display their state seller’s permit somewhere inside the business in order to maintain the permit. Other business licenses may require things like continuing education or additional paperwork throughout the year.
You should also be sure to familiarize yourself with the renewal period for any licenses your business is required to maintain. Failure of a business owner to renew or update a license within the required timeframe can have serious negative consequences for your business.
If your business changes its structure or location before your licenses’ renewal dates arrive, you will likely be required to either update your license information or reapply for the appropriate licenses for your business’ new information.
Getting a WI business license the easy way
Depending on the nature of your business entity, the business licensing process can become burdensome at times and may require a substantial investment of time and effort to complete. To make the process simpler, LegalZoom offers an all-in-one business licensing tool.
Our attorneys can help you make sure your business licenses are up to date and appropriately cover your industry and location. Just answer a few questions about your business and our team will let you know what licenses you need and how to secure them.
FAQs
What should I do before getting a business license?
Prior to applying for a business license, you need to finalize the key information about your company. This can include checking the availability of your business name, completing your Wisconsin business tax registration, choosing a structure for your business, and selecting a registered agent.
How much is a business license in Wisconsin?
Business license costs can vary in Wisconsin and are largely dependent on your industry and the local regulations of the county or town in which you will do business. When considering the costs of licensing, remember to factor in the cost of not only state permits but local and federal costs as well.
How long does it take to get a business license in Wisconsin?
Registering for a Wisconsin business license is a relatively quick process. In most cases, an online application will be either approved or denied within a couple of days. Depending on your location, a paper copy of an approved license will typically take 1-2 weeks to arrive after an approval is issued.
What happens if I don’t get a Wisconsin business license?
Penalties for operating an unlicensed business in Wisconsin can be strict, ranging from fines and business closure to criminal charges in the most extreme cases. Local and federal authorities may also have additional penalties associated with running an unlicensed business, depending on your industry.