Wisconsin LLC Taxes: The Complete Filing Guide (2025)

Wisconsin LLC Tax Basics

Navigating your Wisconsin LLC tax obligations doesn’t have to be complicated. We’ll walk you through the essentials of pass-through taxation, explain Wisconsin’s specific requirements, and highlight strategies to stay compliant and organized. This guide covers everything from federal income taxes to city-specific requirements and filing deadlines.

Use the links below to jump directly to the section you need:

• Wisconsin LLC Taxes at a Glance
• Understanding LLC Taxation Basics
• Federal Tax Obligations
• Wisconsin State Taxes
• Local Tax Considerations
• Tax Calendar and Filing Tips
• Tax Strategies for Wisconsin LLCs
• Forms and Resources

Wisconsin LLC Taxes at a Glance

Tax Type	Rate	Filing Deadline	Forms Required
Federal Income Tax	10-37% (personal brackets)	April 15, 2025	Form 1040 + Schedule C or Schedule E/K-1
Self-Employment Tax	15.3%	April 15, 2025	Schedule SE
Wisconsin Individual Income Tax	3.5%–7.65%	April 15, 2025	Form 1
Wisconsin Pass-Through Entity Tax	7.9%	March 15, 2025	Form 3/Form 5s
Wisconsin Corporate Franchise Tax	7.9%	April 15, 2025	Form 4
Federal Payroll Taxes (If Employees)	7.65% employer + 7.65% employee (FICA)	Quarterly (April 30, July 31, October 31, January 31)	Form 941
Wisconsin Unemployment Tax (If Employees)	0.0%–12.0% (3.05% for new employers)	Quarterly	Form UC-101
Federal Unemployment (FUTA)	6% on first $7,000 per employee (0.6% after credits)	January 31, 2026 (annual)	Form 940
Sales & Use Tax	5% (+ up to 2.9% local sales tax)	Monthly, quarterly, or annually based on sales volume	Form ST-12
Annual Report	$25-$40	Due by end of the quarter in which the LLC was formed	Form 5

Understanding LLC Taxation Basics

How Wisconsin LLCs Are Taxed By Default

Your Wisconsin LLC doesn’t pay taxes itself. Instead, profits flow through to you and your members, who report them on personal tax returns. This is called pass-through taxation.

Here’s how it works:

1. Your LLC earns income from business activities
2. The LLC itself files no tax return (unless you elect otherwise)
3. Profits “pass through” to members based on ownership percentage
4. Each member reports their share on their personal tax return
5. Members pay tax at their individual income tax rates

What this means for you: Unlike corporations, your business profits are only taxed once, which typically saves money.

Tax Classification Options

While pass-through taxation is the default, your Wisconsin LLC can choose alternative tax treatments:

Default LLC Tax Status:

• Single-member LLC: Taxed as a sole proprietorship
• Multi-member LLC: Taxed as a partnership

Optional Tax Classifications:

• S Corporation: Can reduce self-employment taxes by paying “reasonable salaries”
• C Corporation: LLC pays corporate tax on profits, members pay personal tax on distributions (creates double taxation)

Wisconsin Pass-Through Entity Tax Option:

• Optional tax that allows LLCs taxed as partnerships or S Corps to pay tax at the entity level
• Can help overcome the $10,000 SALT deduction limitation
• Cannot be revoked once filed (election is binding for the tax year)

Not sure which tax classification is right for your business? Schedule a free consultation with 1-800Accountant.

Federal Tax Obligations

Income Tax

As a Wisconsin LLC owner, you’ll report your share of business profits on your personal tax return using:

• Form 1040 + Schedule C (single-member LLCs)
• Form 1040 + Schedule E + Schedule K-1 (multi-member LLCs)

Federal income tax rates range from 10% to 37% based on your tax bracket (actual brackets will depend on inflation adjustments and any tax law changes).

Simply Put: Whatever money your business makes (after expenses) gets added to your personal tax return, just like income from a job.

Self-Employment Tax

LLC members actively involved in the business must pay self-employment tax of 15.3% (covering Social Security and Medicare) on their share of LLC profits.

Key points:

• Applies to net earnings of $400 or more
• Calculated on Schedule SE
• You can deduct 50% of the self-employment tax as an “above-the-line” deduction, which lowers your adjusted gross income

What happens if I miss this payment? The IRS charges penalties of 0.5% per month plus interest. However, first-time mistakes can often qualify for penalty abatement if you have a clean compliance history.

Employment Taxes

If your LLC has employees, you must:

• Withhold federal income tax
• Pay and withhold FICA taxes (7.65% each for employer and employee)
• Pay federal unemployment tax (FUTA)
• File quarterly employment tax returns (Form 941)
• Provide W-2 forms annually

Estimated completion time: 2-3 hours per quarter (significantly less with payroll software or professional help)

Estimated Tax Payments

Because no tax is withheld from your LLC profits, you’ll likely need to make quarterly estimated tax payments using Form 1040-ES. These payments cover both income and self-employment taxes on your share of the business income. Missing deadlines or underpaying can lead to IRS penalties, even if you pay in full later.

Working with an accountant can help ensure accurate calculations, on-time payments, and a smarter overall tax strategy.

Key deadlines:

• April 15
• June 16
• September 15
• January 15

Pro Tip: Set calendar reminders 15 days before each deadline. This gives you time to prepare without the last-minute rush that leads to mistakes.

Wisconsin State Taxes

Wisconsin Income Tax

Wisconsin has a progressive personal income tax rate of 3.5% to 7.65% that applies to your LLC’s profits on your personal return.

Filing requirements:

• Use Wisconsin Form 1
• Due April 15, 2025
• Wisconsin follows federal adjusted gross income as a starting point

Bottom Line: For every $1,000 your LLC earns, you can expect to pay somewhere between $35 and $76.50 in Wisconsin state income tax (in addition to federal taxes).

Wisconsin Pass-Through Entity Tax

This optional tax can benefit many Wisconsin LLC owners:

• Tax rate: 7.9% (on the LLC’s net income)
• Paid by your LLC instead of individual members
• Members receive a tax credit on their personal returns
• Helps bypass the $10,000 SALT deduction limitation
• Must elect by filing Form 3 (partnerships) or Form 5s (S corps) 
• Due March 15, 2025
• Binding for the tax year (cannot be revoked once filed)

Real Savings Example: For an LLC with $250,000 in profits, the Pass-Through Entity Tax could save owners up to $7,300 in federal taxes by working around the SALT deduction cap.

Wisconsin Corporate Franchise Tax

Wisconsin imposes a flat corporate franchise tax rate of 7.9% on domestic LLCs that elect to be taxed as C corporations.

Filing requirements: 

• Use Form 4
• Due April 15, 2025
• File online with the Wisconsin Department of Revenue
• Foreign LLCs taxed as C corps are subject to corporate income tax instead

Sales and Use Tax

If your Wisconsin LLC sells physical products or certain services:

• Collect 5% sales tax (plus any applicable local taxes)
• Register for a seller’s permit with the Wisconsin Department of Revenue
• File and pay monthly, quarterly, or annually (based sales volume)
• Due dates vary depending on your assigned filing frequency

60-Second Check: Do I Need to Collect Sales Tax?

• Do you sell physical products in Wisconsin? → If yes, collect tax
• Do you sell digital products? → Generally not taxable
• Do you provide services? → Most services are exempt 
• Do you sell online to Wisconsin customers? → If yes, collect tax

Services typically exempt from sales tax include:

• Professional services (legal, accounting)
• Personal services (haircuts, fitness training)
• Medical services

Products typically subject to sales tax include:

• Tangible personal property
• Prepared food
• Some digital products

Payroll Taxes 

If you have employees in Wisconsin, you will be responsible for two types of payroll taxes. 

Unemployment Insurance (UI) Tax 

• Register with the Wisconsin Department of Workforce Development
• Rate is 3.05% for most new employers (0.0% to 12.0% afterwards)
• Due quarterly

Withholding Tax 

• Register through the Wisconsin One Stop Business Registration Portal
• Rates vary based on employee income and withholding tables
• Due monthly, quarterly, or annually, depending on your assigned filing frequency

Annual Statement Filing

While not a tax, your Wisconsin LLC must file an annual report in order to remain in good standing with the state. 

• Due by the end of the quarter in which your LLC was formed
• $25 fee if filed online, $40 if filed by mail 
• File online or by mail using Wisconsin Form 5

Calendar Alert: Set a reminder to ensure you don’t miss this easy but required filing.

Local Tax Considerations

Local Option Sales Taxes

The State of Wisconsin currently allows 70 counties, the City of Milwaukee, and various special districts to impose local sales taxes on top of the 5% state rate.

Areas with additional sales taxes include:

• Milwaukee County (0.9%)
• City of Milwaukee (2%)
• Dane County (0.5%)
• Brown County (0.5%)
• Eau Claire County (0.5%)
• 60+ other counties and transit districts across the state

Filing requirements:

• Local sales taxes are filed together with your state sales tax return
• Use Form ST-12 (submit online through Wisconsin’s My Tax Account)
• Filing frequency (monthly, quarterly, annually) is assigned based on your sales volume

Property Taxes

If your LLC owns real property in Wisconsin:

• Rates vary by locality
• Assessed annually
• May qualify for various exemptions based on business type

Tax Calendar and Filing Tips

Key Deadlines for Wisconsin LLCs

January:

• January 15: Final estimated tax payment for previous year
• January 31: Issue W-2s/1099s to employees/contractors
• January 31: Fourth quarter UI tax & wage report due 
• January 31: Fourth quarter federal payroll tax payment due

March:

• March 15: Pass-through entity tax election deadline

April:

• April 15: Personal tax returns due
• April 15: Federal income and self-employment tax returns due

• April 15: First quarter estimated tax payment due 
• April 30: First quarter UI tax & wage report due
• April 30: First quarter federal payroll tax payment due

June: 

• June 16: Second quarter estimated tax due 

July: 

• July 31: Second quarter UI tax & wage report due
• July 31: Second quarter federal payroll tax payment due 

September:

• September 15: Third quarter estimated tax payment due

October:

• October 31: Third quarter UI tax & wage report due 
• October 31: Third quarter federal payroll tax payment due

Record-Keeping Checklist

Keep these records for at least seven years:

• Business income records (invoices, receipts)
• Expense receipts and documentation
• Bank and credit card statements
• Asset purchase and improvement records
• Vehicle mileage logs
• Home office documentation
• Payroll records
• Previous tax returns

Tax Strategies for Wisconsin LLCs

S Corporation Election Benefits

Converting your LLC to an S Corporation for tax purposes can save on self-employment taxes:

1. File Form 2553 with the IRS
2. Pay yourself a “reasonable salary” subject to employment taxes
3. Take remaining profits as distributions exempt from self-employment tax

Example: An LLC making $100,000 in profit pays 15.3% self-employment tax on the entire amount. As an S Corp, if $60,000 is a reasonable salary and $40,000 is taken as distributions, only the $60,000 is subject to employment taxes.

Potential Savings: In this example, you’d save about $6,120 in self-employment taxes.

Pass-Through Entity Tax Election

Consider electing Wisconsin’s Pass-Through Entity Tax if:

• You’re affected by the $10,000 SALT deduction cap
• You expect your LLC to earn significant pass-through income
• All members agree to the election

Business Expense Deductions

Common deductions Wisconsin LLC owners often overlook:

• Home office deduction
• Business mileage (70¢ per mile for 2025)
• Health insurance premiums
• Retirement plan contributions
• Professional development expenses
• Business meals (50% deductible)

Forms and Resources

Federal Tax Forms

• Schedule C: Profit or Loss From Business (sole proprietors)
• Form 1065: U.S. Return of Partnership Income
• Schedule K-1: Partner’s Share of Income, Deductions, Credits
• Form 1120-S: U.S. Income Tax Return for an S Corporation
• Form 2553: Election by a Small Business Corporation (S Corp)
• Form 8832: Entity Classification Election

Wisconsin Tax Forms

• Form 1: Wisconsin Income Tax Return
• Form 3: Wisconsin Pass-Through Entity Tax Return (Partnerships)
• Form 5s: Wisconsin Pass-Through Entity Tax Return (S corps) 
• Form ST-12: Sales and Use Tax Return
• Form 5: Wisconsin Annual Report 

Helpful Resources

• Wisconsin Department of Revenue
• Wisconsin My Tax Account
• Internal Revenue Service
• Wisconsin Department of Workforce Development
• Wisconsin Department of Financial Institutions