State Filing Fees Waived for Student Entrepreneurs Who Organize Wisconsin LLCs
Jeff Storch | 03.26.19
Since May 1, 2018, the $130.00 filing fee to organize (create) a limited liability company (LLC) in Wisconsin can be waived for “student entrepreneurs”. A student must meet the following criteria:
- The student is enrolled in a post-secondary institution in Wisconsin.
- The student is an organizer of the LLC or will be a member of the LLC upon its formation, and the LLC is being formed as a business start-up.
- The student is at least 18 years of age.
To qualify, all members of the LLC must meet the criteria at the time of formation (that is, when the LLC’s articles of organization are filed).
In addition, Form 502SE must be submitted to the Wisconsin Department of Financial Institutions (WDFI). The form includes an affidavit from the LLC’s organizers that they meet the above criteria. It also serves as the articles of organization for the student entrepreneur LLC. For more information, including a link to the form, see WDFI’s webpage for Student Entrepreneurs.
Of course, filing articles of organization is only the first step. A written operating agreement, specifying each member’s rights and obligations as to the conduct of the LLC’s business and its relationships with members, is strongly recommended, particularly in any LLC with more than one member. Wisconsin’s LLC statutes provide certain default rules, but there are several good reasons for adopting a written operating agreement to govern the affairs of the LLC, rather than relying solely on the statutes.
- First, the members may wish to reduce to writing provisions governing certain aspects of the LLC’s affairs that are particular to the LLC’s circumstances and that are not addressed at all by the statutes.
- Second, the members may wish to alter some of the statutory default rules. For example, the members may wish to increase the voting thresholds required to approve certain actions from a majority to a supermajority.
- Third, the members may wish to memorialize their agreement in writing to have a document for easy reference when they have a question regarding the governance of the LLC.
- Finally, adopting an operating agreement allows a copy of the document to be given to parties who may have an interest in the internal rules of the LLC, such as lenders. This also puts the party receiving a copy of the operating agreement on notice of any important differences in the governance of the LLC from the default rules contained in the statutes.
DISCLAIMER: The information provided is for general informational purposes only. This post is not updated to account for changes in the law and should not be considered tax or legal advice. This article is not intended to create an attorney-client relationship. You should consult with legal and/or financial advisors for legal and tax advice tailored to your specific circumstances.