Business Start-Up Regulations (La Crosse County)

A new business in Wisconsin will be subject to some or all of the following requirements through local, state or federal regulatory bodies, primarily depending on their size, form of organization and number of employees.

Federal Employer Tax I.D. Number (EIN)- A new business will not need a federal tax number if it has no employees and is organized as a proprietorship.  In this case, a social security number is sufficient. (The one exception is independent contractors who must have an EIN).  If the business becomes a partnership, incorporates, or hires an employee, then a federal tax number will be required.  Applications (Form SS-4) are available locally where other IRS forms are distributed (the Post Office).  IRS questions may be directed to (800) 829-4933, individual forms may be ordered by calling (800) 829-3676.   To get a tax number quickly, call the IRS weekdays 7:00 a.m.–10:00 p.m. CST at (800) 829-4933, or fax the SS-4 form to (215) 516-3990. The IRS web site address is www.irs.gov.

State Withholding Tax I.D. Number - Similar to the federal situation, no tax number is required if there are no employees and the firm is operated as a proprietorship.  A corporation or partnership requires a tax I.D. number.  The Department of Revenue phone number is (608) 266-2776 (Madison) or try http://www.revenue.wi.gov.

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Sales Tax - Almost all businesses selling retail products are required to collect sales tax. Some businesses providing a service also collect sales tax. Wisconsin's sales tax law is that all services are exempt unless specifically listed. Consult the Department of Revenue to determine your specific status for sales tax. 

Seller's Permits - are required of every individual, partnership, corporation, or other organization making retail sales or rentals of tangible personal property or retail sales of taxable services in Wisconsin.  In requesting a Seller's Permit, the business must forecast the amount of sales tax liability anticipated.  Generally your reporting period will be quarterly unless the Department of Revenue notifies you in writing that your returns must be filed monthly or annually.  Call the Department of Revenue at (608) 266-2776 (Madison) to secure a Sellers Permit form or ask related questions.  Visit the Department of Revenue office in La Crosse Mondays and Wednesdays from 7:45-11:45 a.m. at 620 Main St., Rm. 213, (608) 785-9720. The Department of Revenue web site address is http://www.revenue.wi.gov.

Sales to customers in other states may be subject to different tax. Check with the Department of Revenue in that state.

Consumers Use Tax Permit - The purchase of property or services outside of the state and consumed, used or stored in Wisconsin can require the payment of a use tax if sales taxes not paid already. Check with the Department of Revenue in Madison at (608) 266-2776.

Estimated Tax - Generally sole proprietors, partners, and shareholders of an S Corporation pay tax on income by making regular payments of estimated tax during the year. If you expect to owe taxes of $1,000 or more (including social security and Medicare) when you file your return, you generally have to make estimated quarterly tax payments. Use Form 1040-ES, Estimated Tax for Individuals, and 1-ES, Estimated Tax for Individuals, Estates and Trusts.

Social Security - Business owners generally have to file estimated federal income taxes on a quarterly basis.  At that time, their Social Security obligations will also be computed by filling out the quarterly estimated tax form.  The maximum tax on earnings for 2006 is $94,200. The self-employed rate is 15.3%.  An employer and employee each pay 7.65% towards Social Security/Medicare.  For further information, call (800) 772-1213, or www.ssa.gov.

Business Name Registration - Some counties have a business name registration ordinance.  In La Crosse County you may register your business name, but it is not required.  Businesses who choose to use a name other than their full given name may wish to register with the County Clerk's office, Register of Deeds for La Crosse County, (608) 785-9644 to clarify who the principal operator of that business is. If you use your full personal name for the business, this process would be unnecessary.

f you are a sole proprietor or have a general partnership, you may check with the Secretary of State at (608) 266-5653 to learn if a name has already been registered, to register your business name, or to apply for a Mark/Trademark.  More information can be found at www.wisconsin.gov/state/byb/name.html.

If you are a limited partnership, corporation, etc., call the Dept. of Financial Institutions, at (608) 261-7577 (press 5) to learn if a name has already been registered, or to register your business name.  The Dept. of Financial Institutions, (formerly part of the Secretary of State Office) has a web site address of www.wdfi.org which enables you to search the Corporate Registration Information System (CRIS) and/or download forms.

There is a $15 fee to register with the state.  Registering is not required but it puts your name on file.  It does not incorporate a business nor does it provide employer identification numbers, state or federal.  It does not put your business on file with the Department of Revenue.

Business Organization

A. Proprietorship - A proprietorship consists of one owner (business and individual are one entity). All personal assets are subject to satisfying business debts. Personal income and business income are taxed as one entity.

B. Partnership - A partnership is a relationship between two or more persons who join together to carry on a trade or business. Each person contributes money, property, labor, or skills, and each shares in the profits and losses of the business. Any number of persons may join in a partnership. All owners are personally liable for total business debt, even if they did not take the action causing the debt. Business tax numbers are required. A written partnership agreement is highly recommended.

C. Corporation - A corporation is treated by law as a legal entity. It has a life separate from its owners and has rights and duties of its own. The owners of a corporation are the stockholders. The managers of a corporation may or may not be stockholders. Corporations are assisted by the Dept. of Financial Institutions, Division of Corporate and Consumer Services, Corporations Section 3rd Floor, P.O. Box 7846, Madison, WI 53707-7846. Call (608) 261-7577, press 5.  Web site address is www.wdfi.org.

S Corporation - An S Corporation is a small business corporation that elects to have its income taxed in a manner similar to a partnership. In general, an S Corporation does not pay tax on its income. Instead, the income and expenses of the corporation are divided among its shareholders, who then report them on their own income tax returns. More information can be obtained from the Dept. of Financial Institutions. Call (608) 261-7577, press 5.

 Limited Liability Company - An LLC has the corporate characteristics of limited liability (like S Corporation) and is treated, for income tax purposes, either as a partnership or corporation as determined by the federal government. An LLC allows an unlimited number of shareholders and can own up to 100% of another corporation. More information can be obtained from the Dept. of Financial Institutions. Call (608) 261-7577, press 5.

For more information and handouts,  phone (800) 827-5722 or try http://www.sba.gov/library/pubs.html. 

Business License or Permit - Contact the Wisconsin Department of Commerce Business Help Line (800) HELP-BUS or (800) 435-7287 for forms or information. Wisconsin Department of Commerce 24-hour fax request hot line (608) 264-6154.

Zoning - A business operating out of any building will need to be zoned for business use in that geographic area. An office in the home may have special considerations. Home-based businesses can find details on the website www.co.la-crosse.wi.us. Look under “Code of Ordinances”, then look in the Table of Contents for Chapter 17, Zoning Code. For clarification or to learn more about conditional use permits, call La Crosse County Zoning and Land Information. Call (608) 785-9722.

Health Department Inspection - Businesses that involve the sale of food or lodging (and hair salons) will generally have health inspection requirements. These may be determined by consulting the State Division of Health or the local county Health Department, which is often the enforcement body for state health regulations and inspections. The Wisconsin Division of Health Environmental Sanitation Unit phone number is (608) 266-2835. The La Crosse County Health Department phone number is (608)785-9771.

Fire Department Inspection - Businesses having regular entry and use of the facilities by the public, as well as housing flammable materials, will generally need a fire department inspection. Consult the local fire department. The La Crosse Fire Department phone number is (608) 789-7260.

Safety and Buildings - Any major remodeling will require that plans be submitted for approval to the Safety and Building Division of the Department of Commerce at (608) 266-8982.  Call the City of La Crosse Building Inspector at (608) 789-7530. Local municipalities may also require a building permit.  For information regarding Americans with Disabilities Act regulations, contact Rick Schroeder, Building Inspector at (608) 789-7565.  Further information may be obtained on the Great Lakes Disability and Business Technical Assistance Center web page: http://www.adagreatlakes.org/