If you exclude attorneys fees for services (such as preparing an operating agreement and determining what additional filings, permits, etc. that the business will need to get up and running), the most basic cost to register or “organize” an LLC currently in Wisconsin online is $130.00 paid to the Wisconsin Department of Financial Institutions, which
Similar to the required practices of maintaining a Corporation, it is a good idea to keep the important documents and minutes recording important transactions and happenings of an LLC in a minute book, to be maintained at the main business office and at the office of your attorney who can then remind you to annually file your annual report and update your minutes.
Statutory requirements for Wisconsin LLC’s are less than that of a Wisconsin corporation. However, it is important to note that pursuant to Wisconsin Statutes, a LLC is required to file an annual report, keep certain written records, including copies of the LLC’s tax returns, records of the LLC members, the value of each member’s contributions to the LLC, records of the times at which, or the events upon which, any additional contributions are agreed to be made by each member.
The minute book would be an appropriate place to keep much of this information. In addition, even though "formalities" such as annual meetings are not required of LLC’s, following such formalities can be important to help protect the limited liability benefits provided by the LLC law in Wisconsin. For example, maintaining an LLC minute book is one of the things you can do to help ensure that the "limited liability veil" is not pierced. When the courts "pierce the limited liability veil", they assign liability to individuals for actions that the limited liability company performed. It is not uncommon for plaintiffs to name individuals associated with a corporation or LLC as defendants in any litigation against a LLC or corporation.Continue Reading Consider Keeping Minute Book for your LLC
Almost always, when a business seeks money from a lender to finance the enteprise or enters into a commercial lease for space to run the business operations, the individual business owners themselves will be required by the bank or the landlord to execute personal guarantees of the loan or lease as appropriate. The owners often…
Once coupled to a development idea, every entrepreneur faces the challenge of deciding which business entity would best suit his or her needs. While one would think that there is one right answer to this dilemma, in fact, the answer depends on a number of factors that are unique to each business, resulting in many different entities being the "right" choice, depending on the circumstances.
Factors affecting entity choice include:
- Liability Protection
- Owner Relations
- Income Tax Consequnces
- Other Tax Consequences
- What Others are Doing
Considering these factors, the owner has the following choices:
- Corporation (S-corp or C-corp)
- Sole Proprietorship
- Limited Liability Company (LLC)
- Limited Partnership (LP)
- Limited Liability Partnership (LLP)
- Others, such as Joint Venture, etc.
Perhaps the best way to compare all these choices is through a table which sets forth some of the most common advantages and disadvantages of each type of entity in comparison to the above factors:Continue Reading Selecting the Right Entity to do Business