03/30/2026
Starting a business? Before you start a business in Wisconsin, there are some legal considerations that will impact your business now and in the future. One important consideration is how you structure your business.
There are several options when choosing a legal structure for your business, and each has advantages and disadvantages. Because the choice can affect liability, taxes, governance, and future growth, it is wise to speak with an attorney and tax professional before deciding.
➡️ Sole Proprietorship: A sole proprietorship is an unincorporated business owned by one person. The owner and the business are not legally separate, so the owner is generally personally responsible for the business’s debts and obligations.
➡️ Partnership: In Wisconsin, a partnership may arise when two or more persons carry on a business as co-owners for profit. Although a written partnership agreement is not strictly required, having one is strongly recommended. If the business wants limited liability partnership status, it must file the appropriate qualification documents with the Wisconsin Department of Financial Institutions.
➡️ Limited Liability Company (LLC): An LLC is a business entity that generally provides limited liability protection to its members. In Wisconsin, an LLC is formed by filing articles of organization and must maintain a registered agent. LLC taxation varies depending on the number of members and any tax elections made, so pass-through treatment is common but not universal.
➡️ Corporation: A corporation is a separate legal entity owned by shareholders. In Wisconsin, it is formed by filing articles of incorporation with the Wisconsin Department of Financial Institutions and must maintain a registered agent. A corporation may be taxed under C corporation rules or, if eligible and elected, as an S corporation.
