Are you expanding or starting a new business in Wisconsin? If so, you are embarking on an exciting endeavor. However, business formation and management can be challenging if you do not engage in strategic business planning, particularly when selecting the legal structure for your business. At Borakove Osman LLC, our Madison business law attorneys provide comprehensive legal support throughout the startup process and beyond.
Madison Business Law Attorneys for Business Formation and Management
Our legal team at Borakove Osman LLC has extensive experience serving entrepreneurs and business owners with legal guidance around starting and managing a business in the Madison, WI area. As local business law attorneys, we are well-versed in Wisconsin’s complex business laws. We assist clients with every aspect of business formation and management.
We help business owners navigate the complex legal landscape in Wisconsin. Our team is committed to client success from startup to expansion or transition.
Wisconsin Business Law Lawyers Helping Entrepreneurs Navigate Formation and Structuring
According to the U.S. Business Formation Statistics database from the U.S. Census Bureau, tens of thousands of businesses file applications in Wisconsin each year. A crucial step in forming a business is selecting a legal entity for your company.
There are several different entity types available in Wisconsin. Each business entity has distinct characteristics that affect personal liability, tax treatment, and management structure.
Common business entities for Wisconsin companies include, but are not limited to:
- Limited Liability Company (LLC) – Member owners manage the company according to the company’s operating agreement. LLCs combine the personal liability protection of a corporation with the flexibility and pass-through taxation of a partnership.
- Corporations – A corporation is a legal entity with shareholders who own an interest in the company. It is the most formal business entity and provides the highest level of personal liability protection. However, corporations are subject to double taxation because the company pays taxes on its income, and the shareholders pay personal taxes on the dividends they receive.
- Sole Proprietorships – A sole proprietorship is the simplest business to form. There are no legal requirements to register the business. The business and the owner are the same for legal purposes. The sole proprietor is personally liable for all debts of the business.
- Partnerships – Partnerships are formed by two or more individuals who own the company. General partners share in the company’s profits, losses, and liabilities. Limited partners are typically only liable for their investment in the business.
Our business lawyers at Borakove Osman LLC help clients select the most suitable legal entity for their business. We assess your goals, financial situation, tax implications, ownership/management structure, and risk tolerance to determine the legal entity that is right for you. Our attorneys also examine how the business entity affects growth, funding opportunities, and regulatory compliance.
Understanding the Steps to Form a Business in Wisconsin
A 2022 SBA report found that small businesses comprise 99.4% of all businesses in Wisconsin. Regardless of whether you have a small or mid-size business, we can help you navigate the legal steps to form a business in Wisconsin. Steps in Wisconsin’s business formation process include:
- Choosing a name for your business – Your company name must be distinguishable from other business names registered in Wisconsin.
- Determining the best legal entity for your company – This step requires knowledge of the different legal entities and the pros and cons of each entity.
- Filing Articles of Organization or Incorporation with the state, if required for your business entity
- Acquiring the relevant licenses and permits
- Obtaining a registered agent for the service of process
- Securing an EIN (Employer Identification Number)
Some of the steps can be completed online. However, other steps may require business owners to complete and mail paperwork or appear in person at an office or agency. Depending on the type of business and other factors, a business owner may need to take additional steps to form a business in Wisconsin.
What Happens After Forming a Business in Wisconsin?
After forming and registering a business, there are essential actions business owners must take. An experienced Madison business lawyer can help you with each of these steps. Essential steps to take after forming a business in Wisconsin include:
- Develop operating agreements, bylaws, and partnership agreements
- Draft and reviewing contracts and other legal documents
- Ensure governance and compliance with state and federal reporting requirements
- Navigate employment law, including hiring/firing practices, employee handbooks, compensation, employment taxes, and benefits
- Satisfying state licensing and permit requirements
- Protecting intellectual property, including trade secrets, trademarks, and copyrights
- Ensuring cybersecurity and data privacy compliance
- Preparing for business succession
By working with an experienced business formation lawyer, business owners can take proactive steps to protect their investment and future. You deserve strategic business-centric legal counsel. At Borakove Osman LLC, we offer long-term partnerships with clients. Our role does not end with business formation. We help you navigate business management, including contract drafting, shareholder agreements, dispute prevention, regulatory compliance, and succession planning.
What Are the Legal Risks of Poor Business Structure in Wisconsin?
Failing to choose and maintain a business structure can lead to significant risks. Examples of common pitfalls due to inadequate initial structuring include:
- Personal liability risks from piercing the corporate veil to unlimited liability
- Loss of good standing with the state
- Conflicts between shareholders or partners
- Hidden tax liabilities and unintended tax consequences
- Risks of dissolution and/or bankruptcy
At Borakove Osman LLC, we tailor business formation to meet our clients’ needs and goals. Our lawyers ensure that the business entity and structure are sound. We assist you with all necessary steps to minimize the risk of future problems.
What If You Made a Mistake During Formation?
Did you make a mistake during business formation? If so, Borakove Osman LLC can help you “fix” or restructure faulty formations. Resolving the mistake may include converting entity types, correcting Articles, amending operating agreements, or responding to notices from the Wisconsin Department of Financial Institutions or the IRS.
Out-of-State Founders Forming a Business in Wisconsin
Out-of-state founders can form a business in Wisconsin by registering their existing out-of-state company as a foreign entity in the state. They may also create a new domestic business within Wisconsin. Founders who do not reside in Wisconsin or have never conducted business in the state may be unfamiliar with the state’s registration requirements and regulations.
Borakove Osman LLC can assist out-of-state founders with registering or forming a business in Wisconsin. Our Madison business formation lawyers help out-of-state business owners ensure their companies are prepared for sustainable growth.
Talk to a Madison Business Formation Lawyer Today
Working with Borakove Osman LLC can help avoid risks, minimize taxes, and position the company for long-term efficiency and success. Contact our office to schedule your business consultation today to protect your investment and operate with confidence. Start your company on the proper legal footing by contacting our Madison business attorneys today.