5 Things to Know About Starting a Business in Wisconsin
Wisconsin, America’s Dairyland, is home to almost 450,000 small businesses, comprising over 97 percent of total businesses in the state. In terms of accessibility to SBA funding, the state ranks seventh in the country, making it one of the business-friendly destinations for investors.
While starting a business can be challenging, finding a conducive environment can mitigate some of the challenges. Wisconsin makes one such environment with a friendly legal structure, easy access to funds, and many great locations.
Business Types:
Like most states, Wisconsin offers small business owners several business category options. These include Limited Liability Companies (LLC), Sole Proprietorships, General Partnerships, and Corporations. Registering your business as a legal business entity in Wisconsin offers increased credibility and protection from personal liability in case of a lawsuit.
Still, it’s vital to note that different business structures have varying attributes and requirements. For most people, a sole proprietorship is the simplest structure for starting a business. Partnerships are also great, but they don’t have liability protection. LLCs are the most attractive options with optimal flexibility and friendly tax treatment.
For companies like Apple, Amazon, and Google, a corporation is the most suitable structure. However, they have more formal regulations than LLCs.
Business Licenses:
Like any other state, you will need a license in Wisconsin to operate a legal business. Your operations must comply with the state, federal, and local government regulations. Depending on your business type, you might need one or more permits or licenses.
For example, if you’re opening a restaurant, you’ll need the standard business license, signage permit, health permit, and building permit. Be sure to use the state’s Department of Safety and Professional Services website to understand your licensing needs.
The US Small Business Administration (SBA) guide also provides more information on the federal licenses and permits you’ll need. If you need help, professional services can help you obtain the required permits and licenses. These services save you time and money involved in such processes, particularly if you’re new to the state.
Insurance:
Regardless of where you open your new business, starting a business is a risk itself. As such, it’s vital to get insured. Business insurance will protect your venture from different risks, allowing you to focus on growing your enterprise.
Although not required of all businesses, acquiring insurance is a smart move for starting enterprises. The most common insurance plans for businesses include general liability insurance, professional liability insurance, and workers compensation insurance.
For most businesses, including home-based ventures, it is advisable to buy a general liability policy. Professional consultancy and accounting services need to have a professional liability policy. Businesses with three or more employees must have workers’ compensation insurance in Wisconsin.
Workers’ comp insurance protects you from risks linked to employee injuries or fatalities due to workplace accidents. It covers medical bills and salaries of employees and even possible lawsuits. Bear in mind that you’ll need additional coverage as your business grows.
You may also require commercial auto insurance if your business will utilize vehicles for any type of delivery or other types of travel. This also includes personal vehicles used for business.
Accounting:
The sound financial health of your business depends on how you run your business accounting. As a startup, finance is usually a crucial factor. You’ll not be making profits at first, so you’ll need to manage your capital well to keep your business running.
From miscellaneous costs, leasing costs (learn about lease management), and utilities to payroll and taxes, there are several costs of running a business you’ll need to take into account. For most new business owners, working with a professional accounting service helps to simplify the task. They can offer professional advice on financial management, allowing you to identify opportunities for saving money.
More importantly, accountants can help with everything to do with the Internal Revenue Service (IRS), such as tracking and filing your business taxes. Everyone hates taxes, and business owners aren’t the exception. Finances can be confusing come tax season, and accountants have become more affordable lately.
Start Your New Business in Wisconsin:
One of the crucial factors of starting a business is the location—most people usually want locations with friendly tax treatments and incredible ease of doing business. Wisconsin is an ideal location for new business owners. Take the time to learn more about the state and its requirements for new businesses.
You should also define your brand, build a business website, market your business, and hire the right team. Be sure to lay the right foundations to ensure your new venture picks up smoothly for growth and stability.
