Looking to start a business in Wisconsin? No matter what type of company you’re launching, it’s important to know the business license requirements Wisconsin has for businesses at state and local levels.
You may be wondering, how much does a business license cost? While some states have a general business license requirement, Wisconsin does not have such a stipulation. However, if you sell taxable goods or services in Wisconsin, you will need a seller’s permit, which allows you to collect taxes.
In addition, many local communities require some type of licensing. The costs and requirements vary widely, based on the type of business you operate and where you are based.
This article explains the requirements for a business license in Wisconsin and the Wisconsin business license cost parameters for various license types.
Do you need a business license in Wisconsin?
As noted above, there is no broad requirement statewide for a business license in Wisconsin. The state does have some licensing requirements for certain business types.
Generally, the requirements are generally at the local level.
To help business owners, the state of Wisconsin has an online portal that hen do you need a business license in Wisconsin. The Wisconsin One Stop Business Registration Portal contains information to support business owners at every phase of their business development.
In the Create Your Business section, for example, you can learn how to register your company with the state Department of Financial Institutions, register for business tax payments with the state Department of Revenue and obtain an unemployment insurance assessment from the state Department of Workforce Development.
Other sections on the portal can help with business growth and available state resources.
How much does a business license cost in Wisconsin?
How much is a business license in Wisconsin? The costs vary, based on multiple factors, including the type of business you have and where you’re located.
For the seller’s permit, required statewide for businesses that sell taxable goods or services, the cost is a one-time $20 fee.
Other state and local license fees range from $50 to $500 annually. In some cases, those licenses need to be renewed annually or less frequently, usually incurring an additional charge.
Types of business licenses in Wisconsin and their cost
In addition to the state’s seller’s permit, here’s a look at the different types of business licenses Wisconsin businesses may need to obtain:
- City business license. Issued by local cities or towns, these licenses are typically required for different business types
- County business license. Counties may also require businesses of different types to obtain business licenses to operate
- State-level permits (e.g., professional licenses). The state of Wisconsin requires certain businesses to obtain state licenses to operate. In some cases, the individuals running or working at these businesses must also be licensed
- Federal licenses if applicable. Some businesses require federal licenses to operate, regardless of the state where the business is located
Here’s a look at some of the various costs associated with state and local business licenses in Wisconsin:
- Home improvement contractors (city of Milwaukee) – $250
- Ice cream peddler (city of Milwaukee) – $75
- Gas station (city of Milwaukee) – $300
- Community-based residential facility – $389 plus $50.25 per resident
- Exterior asbestos company – $200
The types of businesses that require a license in Wisconsin
Here’s a closer look at what’s required for several of the businesses mentioned above.
Milwaukee home improvement contractor
This license is required for companies that install, repair, service, improve or remodel permanent structures for residential purposes. The license is obtained from the city clerk’s office.
Milwaukee ice cream peddler
Anyone selling ice cream or other frozen confections in a public right of way needs to obtain a one-year license from the city clerk’s office.
Milwaukee gas station
Gas stations need a local license, available from the city clerk’s office.
Community-based residential facility
Licenses are required for facilities with five or more adults who aren’t related living together in a community setting. There’s a 12-month probationary period. Licensing is administered by the state Department of Health Services.
Exterior asbestos company
The state Department of Health Services administers licenses for companies that perform, oversee or advertise outside asbestos work.
Renewing your business license in Wisconsin
Here are the renewal terms and costs for the business licenses noted above:
- Home improvement (Milwaukee): Renewable every two years for $250
- Ice cream peddler (Milwaukee): Renewable annually for $75
- Gas station (Milwaukee): Renewable annually for $300
- Residential facility: renewable every two years for $389 plus $50.25 per resident
- Exterior asbestos contractor: renewable every two years for $200
Depending on the license type, you may incur financial penalties for not renewing on time.
Conclusion
Contacting the appropriate state and local agencies overseeing your business is a good place to start in planning for your license needs. The online state portal is another helpful resource for information and links to license-specific information.
FAQ
Yes. Whether you have an e-commerce or home-based business, you will need a seller’s permit to collect tax on taxable goods and services.
Various state agencies and local governments issue licenses. The licensing body varies and depends on the location and business type.
The time required to obtain a license varies, from days to weeks depending on the issuing agency or municipality.
Yes. A business license is necessary regardless of the type of business you run.
No. An LLC (limited liability company) is a business type, essentially a designation that determines how your business is structure and how you operate it. A business license is a specific credential allowing you to run the type of company you have.
Penalties vary for failure to obtain the proper business licenses in Wisconsin. You may incur financial penalties or be required to cease running your business until the proper licenses are obtained.
Yes. Many local municipalities have their own requirements for running a business in those communities. Checking with your local city or town offices allows you to know what licenses apply to your business.