Wisconsin lesson 5 of 6
Wisconsin LLC taxes, licenses and permits
Wisconsin has no separate LLC franchise tax on a standard pass-through entity. Members instead pay Wisconsin's graduated individual income tax on their share of the LLC's profit.
How members are taxed
A Wisconsin LLC taxed as a partnership or sole proprietorship for federal purposes passes income through to its members, who report their share on their own Wisconsin individual income tax return under the state's graduated bracket structure. Check the Department of Revenue's current-year rate schedule before filing, since brackets are adjusted periodically.
An LLC that elects C corporation tax treatment instead is subject to Wisconsin's corporate income and franchise tax rather than the individual brackets.
Sales tax and local licensing
If your LLC sells taxable goods or certain services, register with the Department of Revenue for a seller's permit before making sales. If you hire employees, register for withholding tax at the same time through Business Tax Registration.
Wisconsin has no single statewide general business license. Requirements depend on your industry regulator and on the city or county where you operate.
Key takeaways
- Pass-through LLC profit is taxed at Wisconsin's graduated individual income tax rates.
- There is no LLC franchise tax on a standard pass-through entity; a C-Corp election instead pays the corporate tax.
- A seller's permit from the Department of Revenue is required before selling taxable goods or services.
Frequently asked questions
Does Wisconsin have a franchise tax on LLCs?
A standard pass-through Wisconsin LLC does not pay a separate state franchise tax. Only an LLC that elects C corporation tax treatment pays Wisconsin's corporate income and franchise tax.
Is there a statewide business license in Wisconsin?
No. Check with your city or county and with any state board that regulates your specific industry.
Official sources
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Last reviewed: September 2026 - reviewed by Gullia Filing Legal & Formation Team