Wisconsin LLC Taxes

Wisconsin’s low cost of living and abundance of natural beauty make it a good location for starting a new business. Yet, as more business owners choose to launch their ventures in the state, many may find it challenging to understand the business taxes involved. 

Regardless of the size of your business, if you operate a limited liability company (LLC) in Wisconsin, you’ll need to stay up to date on your finances and pay federal, state, and local taxes. Our guide will help you understand which taxes you must pay for your Wisconsin LLC.

Recommended: Schedule a free consultation with an accountant to stay on top of your taxes. 

Wisconsin LLC Taxes Owed

LLCs benefit from pass-through taxation, which means the business’s profits pass through to its members’ individual tax returns. As a result, your LLC doesn’t pay taxes to the federal government or the state of Wisconsin. Instead, LLC owners must pay taxes on their portion of the income generated by the LLC. 

In Wisconsin, LLC owners can expect to pay the following taxes:

Federal Taxes

Regardless of where your business is located, if you have an LLC within the United States, you will have to pay federal income taxes and federal self-employment taxes. These taxes are reported on your Form 1040.

Federal Self-Employment Taxes

It doesn’t matter if your LLC is a single-member LLC or a multi-member LLC; all LLC members must pay self-employment taxes on their share of the LLC’s profits. The self-employment tax rate is 15.3%. 

Federal Income Taxes

Your federal income taxes will depend on your tax bracket, and the cutoffs for individual tax brackets, as well as the percent owed, will change each year.

Wisconsin State Taxes

Each state has its own laws that dictate how it taxes individuals and businesses. Below are some state taxes that likely will impact your Wisconsin LLC.

Wisconsin Income Taxes

Wisconsin’s state income tax rate is 7.65%. That rate places it just above the average when compared to other states.

Wisconsin Sales and Use Tax

Wisconsin’s state sales tax rate is 5%. You may pay a higher rate in some areas due to local sales taxes, which average out to 0.43%. Make sure you know if your area has a local sales tax — and how much it is — before starting a business.

Register for a Wisconsin Seller’s Permit

If your business sells taxable goods or services, you must register for a sales tax permit — often referred to as a Wisconsin seller’s permit. For more information and to register, visit the Wisconsin Department of Revenue website.

Additional State Taxes

The Wisconsin Department of Revenue oversees the collection of various state-specific taxes businesses may have to pay, depending on their location, industry, and number of employees. A few examples of these additional taxes include:

  • Alcohol Beverage Tax
  • Dry Cleaning Fees
  • Motor Fuel Tax
  • State Rental Vehicle and Limousine Fee

To learn more, visit the Wisconsin Department of Revenue website.

Wisconsin Local Taxes

The local laws and ordinances in one Wisconsin city or county likely will differ from those in another. Regardless of where you live in Wisconsin, check with your local jurisdiction to ensure your business obtains the proper local permits and follows any local regulations that may impact its operations.

Wisconsin LLC Compliance

You must obey Wisconsin’s state and local laws in order to maintain your business in good standing. While LLCs technically don’t file taxes with the state, Wisconsin businesses must still file an annual report each year.

Wisconsin LLC Annual Report

All LLCs in Wisconsin must file an annual report with the Wisconsin Department of Financial Institutions (DFI) each year. You must file this online, and the filing fee is $25.

Annual reports are due on different dates, depending on when the state approved your LLC’s formation. Here are the various deadlines:

  • March 31 for LLCs approved January 1 to March 31
  • June 30 for LLCs approved April 1 to June 30
  • September 30 for LLCs approved July 1 to September 30
  • December 31 for LLCs approved October 1 to December 31

Wisconsin doesn’t have any late fees or penalties for missing your filing deadline. However, the state will shut down your LLC if you fail to file an annual report three years in a row.

For more information, check out our Wisconsin LLC Annual Report guide.

LLC taxes are complex. While our guide can provide you with important information, we recommend you schedule a free consultation with an accountant to ensure you handle your business taxes correctly.