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.

Factors To Consider Before Starting A Business In Wisconsin

The following are some of the factors you need to consider before you start a business in Wisconsin:

1. Types Of Businesses

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.

2. Tax Considerations

When you are starting your business (be it any location), one of the first things to worry about is taxes. Make sure you reach out to Wisconsin’s Tax Department to get a better idea of taxes and local business laws.

This is because the tax situation in the new location will have a major impact on your business’s profitability. Understand that the impact may be positive or negative. Moreover, there are also different tax credits you can avail of if you have offices in different locations in Wisconsin.

However, it is always a better option to consult with a CPA or CTS if you want to learn about tax breaks and percentages. Basically, a CPA can help you identify hidden costs in the tax structure and can also help you devise a tax strategy for your business.

3. Getting A Business License

Like any other state, you will need a license in Wisconsin to operate a legal business. Your operations must comply with state, federal, and local government regulations. Depending on your business type, you might need one or more permits or licenses.

For example, if you are opening a restaurant, you will need a standard business license, signage permit, health permit, and building permit. Be sure to use the State 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 will 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 are new to the state.

4. Protecting Your Business With Insurance

Regardless of where you open your new business, starting a business is a risk in itself. As such, it is 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’s compensation 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 will 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.

5. Keeping Track Of Your Business Finances

The sound financial health of your business depends on how you run your business accounting. As a startup, finance is usually a crucial factor. Initially, it will be difficult for you to make profits, so you 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 will 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 you with all aspects of the Internal Revenue Service (IRS). These include tracking and filing your business taxes. Generally, at the core level, everyone hates taxes, especially when it comes to businesspersons.

Moreover, dealing with finances during the tax season can be really confusing and overwhelming. Hence, getting the help of accountants can help you deal with taxes better. Furthermore, since accountants are much more affordable, you should start utilizing them for your finances.

Start Your New Business In Wisconsin: Your Next Steps

One of the crucial factors in starting a business is the location. Basically, 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.

The following are the steps you need to take to start your business in Wisconsin:

1. Determine What Your Business Can Offer

Focus on what needs of the market your business can fulfill. The product or service that you offer might depend on your location. Try to offer a product or a service that is not readily available in the area.

2. Make Your Business Unique

Determine what your business does that no one else does. This way, you can articulate and advertise the value of your brand to the market.

3. Understand the Market

Apart from the local market, you also need to consider the broader market that you can serve. Here, you need to consider what kind of target audience you need to cater to who are in need of your products and services.

4. Local Regulations

Research about those laws and regulations that help you to avoid fines and violations. The best option is to take the help of a business lawyer to help you maintain compliance.

Wrapping Up

Hence, to start a business in Wisconsin, make sure you follow the steps mentioned above. Here, you must research all aspects of your business, like markets, costs, and regulations. Thereby, you must plan accordingly and act in accordance with the plan.

Do you have further suggestions? Consider sharing your ideas and opinions in the comments section below.

Read Also: