How to Start a Business in Wisconsin in 11 Easy Steps

If you’ve ever dreamed of launching your own business among the rolling hills of dairy country, then Wisconsin is calling your name. With a population of roughly 5.9 million, this state boasts a robust small business landscape. There are more than 460,000 small businesses in the state, which make up 99.4% of all businesses in Wisconsin.

Known as the “Badger State,” Wisconsin features a diversified economy that spans agriculture and manufacturing to emerging tech and tourism. From Green Bay to Milwaukee to Madison, there’s a strong tradition of entrepreneurship and community support. On top of that, the state’s “One Stop” business registration portal makes it easier than ever to get started.

Whether you’re opening a storefront in a Main Street district or launching an online business from a cozy corner of this state, this guide will walk you through 11 key steps to start a business in Wisconsin. Along the way, you’ll discover Wisconsin-specific regulations, tips, and resources so that you can hit the ground running.

The 11 steps at a glance:

1. Fine‐tune your business idea
2. Create a business plan
3. Choose a business name
4. Choose a business structure
5. Set up banking, credit cards & accounting
6. Get funding for your Wisconsin business
7. Get insured
8. Obtain permits and licenses
9. Find your team
10. Market and grow your business
11. Open the doors!

1. Fine-tune your business idea

Every successful business begins with an idea. Great business ideas are those that fit you, serve a need, and work well within your area. In Wisconsin, there are quite a few opportunities to think about.

Consider your strengths

The fine-tuning process starts by asking yourself what you’re good at, what you love doing, and where you already have experience or connections. Are you a craftsperson, a service provider, or a maker of specialty foods? These are just examples, and they’d all fit well in Wisconsin, where there is a strong tradition of artisan food, agritourism, manufacturing, and local services.

Match your idea to local interests and specialties

Wisconsin’s very identity offers a plethora of ideas. From craft beer and cheese to lakefront recreation, agritourism, and manufacturing support services, there are a variety of niches that you can use to leverage the state’s heritage. Consider what customers in your region want to understand how your idea complements that region’s specialties, but take care to refine your business and branding so that it stands out among competitors.

Check viability

As your business idea starts to take shape, you’ll need to assess it for viability. Use the following tips to better determine the viability of your idea:

• Do market research. Is there a demand for your product or service? Is the market saturated? Can you deliver at a quality level and price point that makes customers willing to buy?
• Consider the cost structure. Wisconsin’s cost of living and business overhead may be lower than some coastal states, which can help improve your margins.
• Decide between offering a product versus a service. Service-based businesses often have fewer physical overheads and can allow you to start lean. Product-based businesses often require larger initial outlays for materials and equipment, but they can tap into Wisconsin’s manufacturing and agrarian strengths.
• Play to regional advantages. In smaller towns, consider whether your business can serve broader regions. If you’re in a larger city like Milwaukee or Madison, you’ll have access to a larger local market without the need to branch out to wider regions — but you can expect more competition and higher costs.

2. Create a business plan 

Your business plan is your roadmap, and it doesn’t have to be anything complex. In fact, for a startup in Wisconsin, it’s best not to overcomplicate it. Just make sure your plan covers the following essentials.

Market research

Ask the following questions:

• Who are your customers?
• Where are they located (in a town or city, across Wisconsin, or national)?
• What are their needs?
• What are your competitors doing?

These questions will shed light on what you’ll need to do to attract and retain a healthy customer base.

Financial plan

Before you officially launch, you’ll need a clear idea of what your startup costs will be. 

• Account for equipment, inventory, rents or leases, utilities, registrations, insurance, and any employees you may hire.
• Determine what your fixed and variable costs will be.
• Estimate sales targets to project revenues after launch and as your business grows.
• Sketch a timeline to understand when you expect to break even on startup and recurring costs.
• Make sure to factor for local, state, and federal taxes that will be owed as you start to generate revenue.

Marketing plan

Ask yourself how you will attract customers. There are a variety of marketing techniques that can bring people in, such as foot traffic (if you have a physical storefront), online sales, social media marketing, and collaborations with local businesses. In Wisconsin, communities appreciate relationship-based business growth, which means you should strongly consider local networking events, chamber of commerce exposure, or community fairs and festivals.

Choose a location or decide if you’ll be online only

Where you operate will shape everything from your budget to your customer base. As part of your business plan, take time to decide what setup fits your idea, market, and resources best.

If you plan to open a brick-and-mortar business, location can make or break your business. Consider the following:

• Foot traffic and accessibility: Retailers and restaurants thrive in walkable districts, while light industrial or manufacturing startups may prefer the outskirts of larger towns and cities, where space is affordable.
• Zoning and permits: Every city and county in Wisconsin enforces its own zoning ordinances. Check with local planning or zoning offices to confirm that your intended use is allowed.
• Operating costs: Commercial rent, property taxes, and utilities vary widely from one area to another. Rural areas may offer lower overhead, but metro centers can justify higher costs by offering denser markets.

If you choose an online only or hybrid structure, Wisconsin makes this simple, too. In fact, many Wisconsin entrepreneurs choose hybrid models that offer both online sales while also catering to local audiences through small studios, storefronts, or as a pop-up presence at local farmers’ markets, craft fairs, or tourist destinations. This can be a great way to test in-person sales without committing to a full-time lease.

For an online business, make sure that you have a website, a strong presence on social media, and a solid supply and distribution plan that allows you to keep up with demand. In terms of taxes and regulations, you’ll need to know about the following:

• As with a brick-and-mortar business, you’ll still need to register through the Wisconsin One Stop Business Portal and obtain any relevant sales tax permits.
• If you sell taxable goods or digital products to Wisconsin customers, you’ll need to collect and remit sales tax via the Wisconsin Department of Revenue’s online system.

3. Choose a business name

Your business name is how you’ll be known, and that’s why it’s crucial to make it memorable, brand friendly, and in compliance with Wisconsin’s rules.

When it comes to branding, here are the basics:

• Keep your business name short and easy to pronounce and spell.
• Make sure the domain name for your business is available.
• Check for existing trademarks and business names so you don’t risk legal conflict.
• Consider whether the name will continue to work as your business grows (if you plan to grow regionally or nationally).

As to Wisconsin-specific rules and regulations, the main thing you’ll need to do is ensure that your business name is unique. You can perform a Wisconsin business entity search to check for name availability.

If you plan to operate under a different name than your legal business name, you’ll need to file a DBA (Doing Business As). This allows you to use an alternate business name for marketing and branding purposes while remaining compliant with state regulations.

4. Choose a business structure

Your choice of business structure will affect liability, taxes, management, and compliance. Be sure to weigh the following options carefully.

Common types of business structures

• Sole proprietorship: You personally own the business. It’s a simple structure with a low cost to start, but you’ll face unlimited personal liability.
• Partnership: Two or more owners share the business, profits, losses, and liabilities.
• Limited liability company (LLC): This business structure offers liability protection for the owners and flexibility in taxation.
• Corporation (C or S): Corporations are more formal structures, but they offer potential benefits for financing and growth. However, they have higher compliance needs. You’ll need to hold board meetings, record minutes, and in some cases, you may face double taxation.

Tax advantages for each business structure

• In Wisconsin, pass-through entities such as LLCs, partnerships, and S-corporations may avoid the corporate double-taxation scenario since income flows through to the business to the owners’ personal tax returns.
• Corporations may pay Wisconsin’s corporate tax rate, and then if dividends are issued, those are taxed again at the individual level. 

5. Set up banking, credit cards, and accounting 

Now that your business idea, plan, name, location, and structure are set, it’s time to put your financial systems in place. This will create a foundation for smooth operations in the future.

Banking

The first step is to open a business bank account. Never use your personal business account for business income and expenses in order to help keep business and personal finances clearly defined. Choose a bank in your preferred region of Wisconsin, and make sure it is one that understands and caters to small business needs.

This is also a good time to establish business credit. Start with business credit cards that can assist with spending and cash-flow management, and be on the lookout for credit cards that offer rewards you can use, like points toward inventory purchases or travel rewards if you anticipate frequent business trips. Later, as you begin to purchase inventory, you should also look into establishing credit among vendors to build a good financial track record.

Accounting and bookkeeping

Invest early in accounting software so that you can ensure that every dollar is tracked. Using your software, set up categories for income, cost of goods sold, operating expenses, payroll taxes, and any other costs. For tax purposes, Wisconsin requires you to keep comprehensive financial records for state filings. If your revenue allows it, consider hiring a part-time bookkeeper or accountant familiar with Wisconsin tax laws and payroll regulations to help you keep your finances in order.

 6. Get funding for your Wisconsin business 

Whether you’re bootstrapping or looking for investors, understanding your funding options is important. You’ll also discover that Wisconsin offers some special incentives, too.

General tips for funding

• Start with your own savings or small business credit cards if the scale is manageable.
• Create a clear budget and cash flow forecast so that you know when you will break even on initial expenditures, and how long you can survive if revenue is slower than anticipated.
• If you need additional funding, Wisconsin has many community banks and credit unions that are willing to serve entrepreneurs. You can also look into guaranteed loans from the Small Business Administration.
• If you want to attract investors, begin by preparing a pitch or summary that outlines your business, target market, financing needs, how you will use the funds, and your growth plan.
• Make sure that both your personal credit and your business credit remain in good shape to maximize the chances of securing business loans.

Wisconsin-specific tips for funding

• Wisconsin offers a number of tax credits and incentives for businesses of all kinds. Use the Wisconsin Department of Revenue Interactive Incentive Finder to see what your business qualifies for.
• Be sure to familiarize yourself with the Wisconsin Business Development Tax Credit Program, which is designed to support job creation, training, and capital investment for businesses moving to or established in Wisconsin.
• You can also explore small business grants Wisconsin that entrepreneurs may qualify for, which can provide non-repayable funding to help with startup costs, innovation, or expansion efforts.
• Check the Wisconsin Economic Development website often — it is regularly updated with grant and loan opportunities as well as training and other resources specifically for small businesses and entrepreneurs in Wisconsin. 

7. Get insured 

Insurance is not optional if you want to protect your business, your team, and your credibility. In Wisconsin, employee and regulatory standards are firm; you’ll discover that certain types of insurance are required by law. 

Here are the specific types of insurance you may need depending on how your business operates:

• General liability insurance: This type of insurance covers injuries or damage that your business might cause to third parties — a must for service-based businesses like plumbers, tree trimmers, or construction professionals.
• Professional liability insurance: This type of insurance covers service-based businesses — like consultants, for example — against errors and omissions.
• Commercial property insurance: This covers your physical space, inventory, and equipment against damage and disasters.
• Workers’ compensation: In Wisconsin, if you hire employees, you’ll be required to provide workers’ compensation insurance either through a private insurer or through Wisconsin’s Self-Insurance Program.
• Unemployment insurance: If you hire employees, you’ll need to register with the Wisconsin Department of Workforce Development for unemployment insurance when you hire.
• Specialized coverage: If your business requires you to drive vehicles, offer food service, use heavy equipment, or do other more specialized tasks, you’ll need to work with your insurer for specialized coverage that protects your business in specific situations. 

8. Obtain permits and licenses 

In Wisconsin, as in any state, the right permits and licenses are critical for compliance. Skipping one can delay your launch or even risk fines down the road.

Federal income tax and Wisconsin state tax

First, you’ll need to register your business with the state using the Wisconsin One Stop Business Portal so that you can ensure that you’re set up properly for state taxes and unemployment. If you sell taxable goods or services, you must also register with the Wisconsin Department of Revenue for sales tax. You can also set up withholding tax accounts with the DoR if you hire employees.

At the federal level, you won’t need to register a small business, but you should get an Employer Identification Number from the IRS, particularly if you plan to hire employees. 

Wisconsin-specific regulations

When it comes to a Wisconsin business license and permits, this is typically handled locally rather than at the state level. Make sure to look into the following:

• Check with municipal, county, and state health departments to obtain necessary licenses for food service, childcare, hospitality, manufacturing, and building or contracting.
• If your business has physical space, you’ll need to check with county or municipal building and zoning agencies to make sure you’re compliant with building codes and zoning laws — and to obtain building permits if you’re building new structures.
• For any brick-and-mortar business, whether a retail store, a restaurant, or a manufacturing facility, you’ll need to ensure that you’re in compliance with fire safety rules, and you’ll need permits to operate certain fire systems. For information about what, specifically, is required for your business and locale, check with your county’s fire marshal.

9. Find your team 

Even if you start your business solo, you’ll still come to rely on others over time: advisors, contractors, employees, and your professional network. Wisconsin law and culture support skilled workers, and the right team can drive your success.

People are the backbone of the business

Hiring or working with the right people, training them well, and empowering them makes all the difference. Your employees or contractors deliver the product or service, interface with your customers, and ultimately carry your brand. 

There are other opportunities beyond those you hire, too. Consider advising with an experienced accountant, networking with fellow business owners to get startup tips, or collaborating with area businesses to fuel community-wide growth. 

People build the product, they communicate with customers, and how they operate will be the face and heart of the business. 

How to comply with Wisconsin payroll regulations

To ensure compliance when hiring employees in Wisconsin, make sure you do the following:

• Understand Wisconsin wage levels, overtime rules, and workplace safety rules
• Register with the Wisconsin Department of Workforce Development for unemployment insurance
• Withhold Wisconsin state income tax and remit it to the Department of Revenue
• Use payroll software that supports Wisconsin regulations and withholdings
• Report employee wages and file timely tax returns

How to hire contractors

Even if you’re a solo entrepreneur, contractors — like bookkeepers, marketing freelancers, or web designers — can help you move faster and stay focused. In Wisconsin, you’ll need to make sure that you have contracts in place that clarify their role as a contractor. You’ll also need to maintain clear records of work completed and payment made to make state taxes easier.

10. Market and grow your business

Setting up your business structure and making sure all of the regulatory details are handled is just the beginning. Now you need to start bringing in customers — and in Wisconsin, you’ll do well to invest in both digital and local marketing strategies. We’ll cover the key things that you’ll need to do next.

Invite customers to opt in to a mailing list or newsletter

Start building your email database from day one. Whether you collect emails from your storefront, website, or local events, a newsletter keeps your community connected. In Wisconsin, community-oriented messaging resonates: local heritage, values, Wisconsin pride.

Consider making special offers to attract your first customers

Launch promos, grand opening events, and referral incentives are valuable ways to capture attention when your business first launches. If you’re in a Wisconsin town, partner with local festivals or seasonal events to gain exposure.

Look for local businesses or brands to collaborate with

Wisconsin has tight-knit business networks, which allows you to collaborate with nearby craft producers, food suppliers, tourism associations, and retail stores for joint events and cross-promotion.

Invest in word-of-mouth marketing

Happy customers attract each other — and as with anywhere else, in Wisconsin, reputation within your community matters. Excellent customer service, involvement in the local community, and consistent quality will help you build your brand faster than paid ads alone.

Pay attention to online reviews

With so much of the business world now influenced by reviews on Google, Yelp, and Facebook, be sure to ask happy customers to leave reviews. Also make sure that you monitor those reviews and respond, a process that helps build trust among communities and customers.

Create unique, helpful content to showcase your activity

Create blog posts, social media videos, behind-the-scenes takes, and other types of content to showcase your Wisconsin-based business. These types of content work wonders to build authenticity and authority. It also allows you to leverage local SEO to attract regional customers. All you need to do is include your location as part of your keyword and tagging strategy.

11. Open your doors!

If you’ve followed through on everything we’ve discussed so far, then you’ll be ready to officially launch your new business. The next tips will help you enjoy a successful launch and build a solid foundation for growth. 

Plan a successful launch event

Whether you’re launching a business online or at a physical location, one of the most important things you can do is to create excitement for the launch. For a local launch, plan a ribbon cutting event, invite local influencers or community leaders, partner with the local chamber of commerce, and offer launch-day specials. 

In many Wisconsin towns, local media will cover your grand opening if you reach out. Be sure to get the word out to local newspapers, TV, and radio stations in advance to ask about advertising your launch ahead of time. You can also ask to have journalists come out and report on the launch day festivities, which will give you continuing exposure for a week or two after your grand opening.

Land your first sale

When it comes to making that first sale, don’t wait for perfection. That’s not to say that you should cut corners, but if you aim for those first sales quickly, customer feedback will help reveal things that you hadn’t considered before, which will allow you to refine your process and build momentum. 

Your first sale is also an opportunity to celebrate, and to tell the story on social media to help humanize and publicize your brand.

Conclusion

Now that you’ve completed all the steps from fine-tuning your idea to planning, naming, structuring, setting up finances and insurance, and more, all that’s left is to open your doors and start managing your dream Badger State business. Wisconsin is a great state for small business owners, one that can offer you strong support, plenty of incentives, and a welcoming community for entrepreneurs who are ready to make their mark.

FAQ