Licenses & Permits

Licenses and Permits for Wisconsin Small Businesses

Before you start selling goods or providing services for your small business, you should make sure you have all the required licenses and permits. This article provides an overview of common licenses and permits needed for Wisconsin small businesses.

Tax Registration/Seller’s Permit

A seller’s permit is required for every business making direct retail sales of tangible personal property or taxable services in Wisconsin, unless an exemption applies. A seller’s permit is a type of permit that gives a business the right to collect sales tax for the state. Wisconsin has a 5% state sales tax, and upwards of 66 counties in the state have an additional 0.5% county tax. Wisconsin had a baseball stadium district tax that expired in 2020.

Tangible personal property is personal property that can be seen, weighed, measured, felt, or touched, or that is in any other manner perceptible to the senses. Examples include clothing, computers, gas, steam, and prewritten computer software. Taxable services include landscaping and lawn maintenance, dry cleaning, parking services, photographic services, printing, rooms or lodging for less than one month, and repair of taxable products.

Business owners can obtain a permit by registering online with the Wisconsin Department of Revenue or by completing an Application for Business Tax Registration and fax or mail it to the department. The Wisconsin Department of Revenue advises owners to apply for a seller’s permit at least three weeks before opening a business.

Employer Identification Number

Although it is not a permit or license per se, many businesses need to obtain an Employer Identification Number from the Internal Revenue Service. An EIN is a unique nine-digit number used for tax filings, bank accounts, and other government filings. Single-owner companies, including sole proprietorships and single-member limited liability companies, do not need an EIN unless they have employees. Corporations, partnerships, and multi-owner limited liability companies do need an EIN.

The preferred method of obtaining an EIN is online through the IRS’s Internet EIN Application.

Licenses for Professions and Trades

Entrepreneurs involved in many professions and trades need licenses. Examples include attorneys, physicians, educators, accountants, aestheticians, architects, barbers, chiropractors, cosmetologists, elevator contractors, interior designers, electricians, music therapists, operators of child care centers, and welders, among many others.

Many professions and trades are licensed by the Wisconsin Department of Safety and Professional Services, which has an A to Z list on its website. Some professions are licensed by other organizations or agencies, such as the Wisconsin Supreme Court for attorneys, the Wisconsin Department of Public Instruction for educators, and the Wisconsin Department of Children and Families for operators of child care centers.

Licensing procedures and requirement vary, but applicants generally have to show evidence of training and many have to pass an exam. Applicants sometimes also must practice a trade under the supervision of someone with experience in the field.

County and City Permits and Licenses

Many types of businesses need to obtain permits or licenses from the city or county in which they operate. Examples include:

• Home Occupation Statement – for certain businesses an entrepreneur is operating out of his or her home
• Occupancy Permit – for businesses operating out of a commercial space
• Food Dealer License – for selling, serving, and/or storing food
• Home Improvement Contractor License – for persons remodeling or repairing buildings
• Bartender’s License – for individuals who sell or service alcoholic beverages
• Ice Cream Peddler Permit – for persons selling frozen confections on the public way
• Secondhand Dealer License – for businesses selling or exchanging secondhand articles of personal property

This list is representative and not comprehensive. Entrepreneurs are encouraged to contact their county and/or city government to see which, if any, licenses and permits are needed to operate in a particular location.

Federal Licenses

Some small businesses require a federal license or permit to operate. Examples include:

• Agricultural businesses may need to obtain a permit from the U.S. Department of Agriculture
• Businesses that make, import, or sell alcoholic beverages may need to obtain a permit from the U.S. Department of Treasury’s Alcohol and Tobacco Trade Bureau (and/or the Wisconsin Department of Revenue and a local municipality)
• Fish and wildlife businesses may need to obtain a permit from the U.S. Fish & Wildlife Service
• Businesses involved in radio or television broadcasting may need a license from the Federal Communications Commission
• Businesses operating oversize or overweight vehicles may need a permit from the U.S. Department of Transportation

Assistance

Entrepreneurs in need of assistance with licensing and permitting are encouraged to contact the federal, state, or local agency or department that regulates their type of business. Entrepreneurs located in the City of Milwaukee may use the City’s StartSmart online tool, which helps determine permitting and licensing requirements. Lastly, entrepreneurs are also encouraged to contact one of the resource providers listed on the Build site.