LLCs in Wisconsin have become the entity de-jour for new businesses in Milwaukee and the rest of the state. The real strength of the LLC is its ease to set up and maintain and its versatility.
An LLC provides all of the liability protection of a Corporation. The same rules generally apply about piercing the corporate veil. In order to maintain the liability protection an LLC affords you have to be sure that you follow the requirements of maintaining your LLC as well as keeping all personal and business money separate.
Probably the most attractive aspect of the LLC is that you can opt for S-Corporation tax status. This allows you, in certain situations, to save money on employment and social security taxes by paying yourself a set income. The default is to have flow through taxation like a partnership or sole proprietorship. An analysis of the two approaches is best left for a later article.
Given the fact that the LLC allows you to take advantage of the liability protection and the s-corp tax status of a Corporation, while being significantly cheaper to set up and easier to maintain; it is easy to understand why LLCs have become so popular in Wisconsin.