Wisconsin · LLC tax election
Wisconsin LLC: S corp or C corp?
Wisconsin lets an S corp pay the corporate rate on purpose, which is a choice few other states offer.
See Wisconsin at a glanceShort answer
Wisconsin taxes a C corp at a flat 7.9%. An S corp passes income to you, so the company usually pays no income tax, though it can elect entity-level tax at 7.9%. With $4 million or more in gross receipts, a surcharge applies: 0.2% of net business income for an S corp, 3% of tax for a C corp.
Last checked .Wisconsin at a glance
| Question | Wisconsin |
|---|---|
| S election recognized? | Yes, Wisconsin follows the federal election1 |
| Separate state form and deadline | No separate state form2 |
| Tax the S corp itself pays | Only with $4 million or more of gross receipts: a 0.2% surcharge, $25 minimum.3 |
| C corp rate and minimum | 7.9% flat4 |
| Personal income tax | Yes, on wages and pass-through income5 |
What is different about Wisconsin?
Wisconsin's quirk is a door that opens both ways. By default an S corp is a pass-through: income lands on your personal return and the company owes no income tax. But Wisconsin law lets an S corp elect, by vote of owners holding more than half the shares, to be taxed at the entity level at 7.9% of net income. That is the same 7.9% flat rate a C corp pays. The second quirk is the economic development surcharge. It applies to S and C corps with at least $4 million in gross receipts, at 0.2% of net business income for an S corp and 3% of gross tax liability for a C corp. Under $4 million, you skip it.
Does Wisconsin recognize a federal S corp election?
Wisconsin follows your federal S election and asks for no separate state form, because state classification tracks the federal one. By default the S corp pays no Wisconsin income tax and the owners report their share. It can elect entity-level tax at 7.9% of net income if owners holding more than 50% of the shares consent. If gross receipts reach $4 million, an economic development surcharge of 0.2% of net business income applies, with a $25 minimum and $9,800 maximum.
Does my LLC need a separate Wisconsin election or form?
Wisconsin has no separate S election; classification follows the federal election.2
What does Wisconsin tax an S corp or LLC at the entity level?
- A Wisconsin S corporation with at least $4 million in gross receipts pays an economic development surcharge of 0.2% of net business income, minimum $25 and maximum $9,800.3
- The surcharge is 0.2% of net business income for S corporations and 3% of gross tax liability for C corporations, with a $25 minimum and $9,800 maximum.6
Is a Wisconsin LLC taxed as a C corp ever better?
A Wisconsin C corp pays a flat 7.9% on Wisconsin net income, and the state has no alternative minimum corporate tax. Net income starts from the federal figure, apportioned to Wisconsin. If gross receipts reach $4 million, a surcharge of 3% of gross tax liability applies, with a $25 minimum and $9,800 maximum. Dividends you take out are taxed again on your personal return.
Run your Wisconsin numbers
In Wisconsin the S election avoids the flat 7.9% company layer unless you elect entity-level tax, which puts you back at 7.9%. The surcharge is small by comparison: 0.2% of net business income for an S corp against 3% of tax for a C corp, and only at $4 million of gross receipts. So the default S route pays off when you take most of the profit out and the company has under $4 million in revenue.
Result
How much would a Wisconsin LLC owner save as an S corp?
| Taxed as | At $80,000 profit | At $150,000 profit |
|---|---|---|
| Default LLC | $11,304self-employment tax $11,304 | $21,194self-employment tax $21,194 |
| S corp | $9,344payroll tax $7,344 + Wisconsin S corp tax $0 + $2,000 payroll and prep | $15,770payroll tax $13,770 + Wisconsin S corp tax $0 + $2,000 payroll and prep |
| C corp | $18,061payroll tax $7,344 + Wisconsin tax $2,528 + federal $6,189 + $2,000 payroll and prep | $32,115payroll tax $13,770 + Wisconsin tax $4,740 + federal $11,605 + $2,000 payroll and prep |
Assumes a 60% salary8 and a single filer. Income tax is left out. C corp dividends are taxed again. Wisconsin's surcharge starts at $4 million of gross receipts, so it is $0 here. We could not confirm on an official Wisconsin source whether a default LLC pays an entity-level tax, so none is shown.
When is the Form 2553 deadline for a Wisconsin LLC, and what if I miss it?
Late relief: federal steps, deadline guide.
What to do next
How to start one, or have us form it from $123.75.
Registered agent $74.25/yr, annual report.
LLC vs S corp guide, election deadline, Form 2553 filed for $165.
More on Wisconsin: How to start a Wisconsin LLC · How to start a Wisconsin corporation · Wisconsin LLC cost · Wisconsin annual report · Annual report late fees by state
File the S-Corp Election for your Wisconsin LLC
We file Form 2553 for a flat $165.
Get the S-Corp ElectionCommon questions
What is the Wisconsin corporate income tax rate?
A flat 7.9% of Wisconsin net income for the franchise tax on corporations. Wisconsin does not impose an alternative minimum corporate tax.
Does Wisconsin tax S corporations?
Not by default. S corporation income passes through to the owners' individual returns. An S corporation can elect entity-level tax at 7.9% of net income, if owners holding more than 50% of the shares agree.
What is the Wisconsin economic development surcharge?
It applies to S and C corporations with at least $4 million in gross receipts. It is 0.2% of net business income for an S corporation and 3% of gross tax liability for a C corporation, with a $25 minimum and a $9,800 maximum.
Should my Wisconsin LLC elect entity-level tax?
The entity-level rate is 7.9% of net income, the same as the C corp rate, so it moves tax from your return to the company rather than cutting it. The election changes who pays, so compare it with your own bracket.
Does Wisconsin recognize my federal S election?
Yes. Wisconsin's classification follows the federal one for pass-through entities, so no separate state S election form applies. The Legislative Fiscal Bureau describes the older rule that state classification must match federal.
Sources 9 links, checked Nov 6, 2026
- Wisconsin follows federal classification, so a federal S corporation is a pass-through for state purposes. docs.legis.wisconsin.gov, checked Nov 6, 2026
- Wisconsin has no separate S election; classification follows the federal election. docs.legis.wisconsin.gov, checked Nov 6, 2026
- A Wisconsin S corporation with at least $4 million in gross receipts pays an economic development surcharge of 0.2% of net business income, minimum $25 and maximum $9,800. docs.legis.wisconsin.gov, checked Nov 6, 2026
- A Wisconsin C corporation pays a flat 7.9% franchise or income tax on Wisconsin net income. revenue.wi.gov, checked Nov 6, 2026
- Wisconsin taxes S corporation and partnership income at the owner level through the individual income tax unless the entity elects entity-level tax. docs.legis.wisconsin.gov, checked Nov 6, 2026
- The surcharge is 0.2% of net business income for S corporations and 3% of gross tax liability for C corporations, with a $25 minimum and $9,800 maximum. docs.legis.wisconsin.gov, checked Nov 6, 2026
- IRS: Form 1120 instructions, C corp rate irs.gov, checked Nov 6, 2026
- IRS: S corp reasonable compensation irs.gov, checked Nov 6, 2026
- IRS: Form 2553 instructions irs.gov, checked Nov 6, 2026
Last verified Nov 6, 2026.
This page explains the rules; it is not tax advice. Run your numbers with a CPA or enrolled agent before you elect.
Last verified Nov 6, 2026.