What is a "qualified Wisconsin business"?
A qualified Wisconsin business is a business certified by the Wisconsin Economic Development Corporation (WEDC) or registered with the Department of Revenue (DOR).
The WEDC was responsible for certifying businesses through 2013. The DOR registration program began in 2014.
My business registered with the Department of Revenue as a qualified Wisconsin business for 2014 through 2022. Do I still need to register as a qualified Wisconsin business for 2023?
Yes. A business must register in each year for which it desires to be a qualified Wisconsin business.
May a business register for a prior year after the registration period has closed?
No. As provided in sec.
Tax 2.986(4)(a), Wis. Adm. Code, "… a business shall register with the department under s. 73.03 (69), Stats., on or before the close of the calendar year for which the business desires registration. A business may not be registered for a calendar year if the registration is not within the time provided in this subsection."
Who may register as a qualified Wisconsin business?
A business may register as a qualified Wisconsin business if, in the business's tax year ending immediately before the date of registration all of the following apply:
- The business has at least 2 full-time employees,
- The amount of payroll compensation paid by the business in Wisconsin is at least 50% of all payroll compensation paid by the business, and
- The value of real and tangible personal property owned or rented and used by the business in Wisconsin is at least 50% of the value of all real and tangible personal property owned or rented and used by the business.
Is employment through a professional employer organization allowed for purposes of meeting the 2 full-time employees and 50% payroll requirements?
Yes, for purposes of the payroll qualification, an employee of a professional employer organization, as defined in sec.
202.21(5), Wis. Stats., or a professional employer group, as defined in sec.
202.21(4), Wis. Stats., who is performing services for a client is considered an employee solely of the client.
If partners of a partnership receive guaranteed payments, are they considered employees for purposes of registering to be a qualified Wisconsin business?
No, partners of a partnership who receive guaranteed payments are not considered employees of the partnership. Internal Revenue Service Rev. Rul. 69-184 provides, "bona fide members of a partnership are not employees of the partnership…" and "…remuneration received by a partner from the partnership is not 'wages' with respect to 'employment'…" Wisconsin follows this treatment.
For purposes of meeting the 2 full-time employees requirement, what is considered a full-time employee?
For purposes of registering to be a qualified Wisconsin business, the department administers "full-time job" to have the meaning according to sec.
238.30(2m), Wis. Stats.
According to sec. 238.30(2m), Wis. Stats., "…'Full−time job' means a regular, nonseasonal full−time position in which an individual, as a condition of employment, is required to work at least 2,080 hours per year, including paid leave and holidays…"
How does a business register?
A business must register using our
Register Qualified Business online application. An immediate confirmation of registration is provided, and the business will be placed on an internet listing of qualified Wisconsin businesses. In general, the list of qualified Wisconsin businesses will be updated biannually (January 31 and July 31).
When may a business register?
Registration for 2023 must be completed by January 2, 2024.
What information from a registration is made available to the public?
The business's legal name and address; the name, email address, and phone number of a contact person for the business; and the business's internet address is posted to a
listing of qualified Wisconsin businesses.
May a business file an amended registration request to update contact information, address, or other information provided with an original registration request?
Yes. An amended registration may be submitted by submitting a second registration request through the
Register Qualified Business online application within the filing period for the registration year.
I started doing business in Wisconsin in 2023. How do I register my business for 2023?
If the business started operations in Wisconsin in 2023, the business must wait to register as a qualified Wisconsin business until the 2024 registration period is available (January 3, 2024, through January 2, 2025).
The eligibility requirements to register as a qualified Wisconsin business for the 2024 registration period are based on the business's 2023 tax year. If the business is eligible to register for 2024, then the business will also be eligible for 2023.
The business may request to be added to the Internet listing of 2023 qualified Wisconsin businesses when completing their online registration for 2024, by selecting "yes" under the question "Did the business start operations in Wisconsin last year" in the first section of the online registration.
Note: This exception applies only for the year in which the business began doing business in Wisconsin, as defined in sec.
71.22(1r), Wis. Stats.
Should the number of employees and amount of payroll and property of a disregarded entity be included in the parent company registration to be a qualified Wisconsin business?
Yes. The number of employees and amount of payroll and property from a disregarded entity are included in the parent company's total employees, payroll, and property when determining eligibility to register as a qualified Wisconsin business.
- Sole proprietorships and disregarded entities should not register to be a qualified Wisconsin business.
- Corporations filing a combined return must qualify independently of each other to register as a qualified Wisconsin business with regards to employees, payroll, and property.
If my business files on a fiscal taxable year, what taxable year is used to determine eligibility of the qualified Wisconsin business registration request?
For each qualified Wisconsin business registration period, the taxable year used to determine eligibility for a business with a fiscal taxable year depends on when the business registers.
- If the business registers before the end of its fiscal taxable year, the business must determine eligibility using its fiscal taxable year that ended in the prior registration period.
- If the business registers after the end of its fiscal taxable year, the business must determine eligibility using its fiscal taxable year that ended in the current registration period.
- Partnership ABC started operating in Wisconsin in 2010 and has a fiscal taxable year of October 1 through September 30.
- The 2023 qualified Wisconsin business registration period is January 3, 2023, through January 2, 2024.
- If Partnership ABC submits its 2023 registration request on or before September 30, 2023, eligibility of the registration request is based on the partnership's fiscal taxable year of October 1, 2021, through September 30, 2022.
- If Partnership ABC submits its 2023 registration request after September 30, 2023, eligibility of the registration request is based on the partnership's fiscal taxable year of October 1, 2022, through September 30, 2023.