Starting a business in Madison

1. Form your business with the state

The Wisconsin Department of Financial Institutions (DFI) registers business entities. Wisconsin's One Stop Business Portal lets you file online to form a limited liability company (LLC), a business corporation or a statutory close corporation. Other entity types are filed directly with DFI. You'll need a business name, a registered agent with a registered office address, a principal office location and the people organizing the entity.

As of 2026, the portal lists online filing fees of $130 for an LLC and $100 for a corporation, each plus a $1 portal fee, with optional expedited processing available for an extra charge. Fees are nonrefundable and may change, so check the portal before you file.

Trademarks and trade names. DFI also keeps a separate registry for trademarks and trade names under Wisconsin Statutes 132.01. DFI says registration is not required but notifies the public that you use a name or mark. As of 2026 it lasts ten years unless renewed.

2. Get a federal EIN

An employer identification number (EIN) comes from the IRS, not the state. The IRS says the online application is free and that you never have to pay a fee for an EIN. You need the responsible party's Social Security number or ITIN, and you must finish the application in one sitting. If you're forming an LLC or corporation, the IRS advises registering with your state first to avoid delays.

3. Register for Wisconsin taxes

The Wisconsin Department of Revenue (DOR) handles business tax registration. You can register online through My Tax Account, by mail with Form BTR-101, or through the Streamlined Sales Tax Governing Board's site. Depending on what you do, registration may include a seller's permit, a use tax certificate or a withholding tax number. The City Clerk says most businesses will likely need a seller's permit from the state. Confirm with DOR whether your sales are covered.

The One Stop portal also asks a few questions to help you judge whether you need to register with the Department of Workforce Development for unemployment insurance. That depends on factors such as employer type, wages and number of employees.

4. Check City of Madison licensing

The City Clerk states that the City of Madison does not have a generic business license. Clerk-issued licenses mainly cover businesses that require inspection, such as restaurants, swimming pools and hotels. The City points to specific offices by business type:

• Public Health Madison & Dane County: food businesses, hotels and short-term rentals, tattoo and body piercing businesses, and certain water licenses.
• Street Vending Program: food carts and other mobile businesses in the right-of-way.
• City Clerk's Office: alcohol and other licenses, at 210 Martin Luther King Jr. Blvd., Room 105. The office can be reached at 608-266-4601, and you can schedule an appointment online.
• Zoning: must allow your use at your location before you open.

The City's Economic Development Division and its Office of Business Resources (608-267-4933) can point you to financing and site-search help. The Clerk's page for new owners also lists local groups such as WWBIC and Madison Enterprise Center.

5. Zoning, signs and building permits

Zoning decides what can operate where. Madison's Zoning Counter in Building Inspection is open by appointment only. Contact zoning at 608-266-4551 ext. 3 or zoning@cityofmadison.com before you sign a lease, and ask about a zoning verification letter if you need one in writing.

Signs. The City's Sign Code regulates new and existing signs citywide. For a sign permit, the City says to talk with Zoning first and get approval before ordering any signs. Only a licensed sign contractor installing the sign, the property owner, or a tenant with the owner's permission may apply. The City says reviews typically take two to three weeks.

Building work. Remodeling a storefront or office may need building permits. Our home project permits guide explains how Madison's permit process works for residential projects, and the same Building Inspection office is the starting point for commercial questions.

Working from home

The City says some limited businesses may be operated out of a home, and that zoning must allow a home-based business. The City's pages don't list which businesses qualify or what limits apply, so contact Zoning at 608-266-4551 or zoning@cityofmadison.com before you start. If you want an alternative to working at home, see coworking spaces.

Free help for new owners

Wisconsin Small Business Development Center at UW–Madison. The SBDC offers no-cost, confidential consulting by appointment, primarily to businesses in Dane, Sauk and Columbia counties. It also runs training in three tracks: START, MANAGE and GROW, and lists a no-cost "First Steps to Starting a Business" resource. It's at Grainger Hall, 975 University Ave., and you can reach it at 608-263-2221.

Madison SCORE. SCORE's Madison chapter says its volunteer counselors, who are retired or active business people, provide free, confidential counseling to small businesses and nonprofits. It also runs workshops, some free and some for a modest fee.

If you're outside the city limits

Licensing is local. The City of Madison's rules apply inside the city, and each neighboring city, village and town has its own clerk, ordinances and zoning. The City of Middleton, for example, lists its Clerk's business licenses as including liquor, tobacco, mobile food and direct seller licenses. Check with the municipality where your location sits before you commit to a lease.

Get listed on MadisonWI.com

Once you're open, add your business to the Madison directory so neighbors can find you, and see for businesses for how listings work.