Setting Up a Manufacturing Relationship in Wisconsin

In Wisconsin, you can choose from several business structures including sole proprietorship, partnership, LLC, or corporation. LLCs are popular for manufacturing businesses as they provide liability protection while offering tax flexibility. Wisconsin's Department of Financial Institutions handles business registrations. Consider consulting with a business attorney to determine the best structure based on your specific manufacturing operations, liability concerns, and tax preferences.

Yes, manufacturing businesses in Wisconsin typically require several permits and licenses. These may include: general business licenses, environmental permits from the Wisconsin Department of Natural Resources (especially for operations involving waste, emissions, or water discharge), building permits for your facility, fire safety inspections, and potentially industry-specific permits depending on what you're manufacturing. Contact the Wisconsin Economic Development Corporation (WEDC) for guidance on required permits for your specific manufacturing operation.

Wisconsin has comprehensive environmental regulations administered by the Department of Natural Resources (DNR). Manufacturers must comply with air quality standards, wastewater discharge permits, hazardous waste management rules, and solid waste disposal regulations. The state follows federal EPA guidelines but may have additional requirements. New manufacturers should conduct an environmental impact assessment before beginning operations and may need to implement pollution control technologies. The DNR offers compliance assistance programs specifically for small manufacturers.

Wisconsin manufacturers must comply with both federal and state employment laws. Key considerations include: minimum wage requirements ($7.25/hour as of 2023), overtime regulations, workplace safety standards (OSHA and Wisconsin-specific), worker's compensation insurance (mandatory), unemployment insurance contributions, and anti-discrimination laws. Manufacturing environments often have specific safety requirements, so develop comprehensive safety protocols and training programs. Wisconsin is also a 'right-to-work' state, which affects how you can structure union relationships.

Yes, Wisconsin offers several tax incentives for manufacturers. The Manufacturing and Agriculture Credit can significantly reduce or eliminate state income tax on manufacturing profits. The state also provides property tax exemptions for manufacturing machinery and equipment, sales tax exemptions for materials used in manufacturing processes, and various tax credits for job creation, capital investment, and research activities. The Wisconsin Economic Development Corporation (WEDC) administers many incentive programs and can help determine which ones apply to your specific manufacturing operation.

Manufacturing contracts in Wisconsin should clearly address: product specifications and quality standards, pricing and payment terms, delivery schedules and logistics, warranties and limitations of liability, intellectual property rights, confidentiality provisions, dispute resolution procedures, and termination conditions. Wisconsin follows the Uniform Commercial Code (UCC) for sales of goods, which provides default rules, but explicit contract terms will generally override these defaults. Consider including force majeure clauses to address supply chain disruptions and specify which state's laws govern the contract (especially important for interstate relationships).

To protect manufacturing intellectual property in Wisconsin: 1) Use patents for novel processes or products (filed through the US Patent and Trademark Office), 2) Register trademarks for your brand names and logos, 3) Maintain trade secrets through confidentiality agreements and security measures, 4) Use copyright protection for technical manuals or software, and 5) Implement employee and contractor non-disclosure agreements. Wisconsin courts generally enforce reasonable non-compete agreements with employees who have access to proprietary manufacturing processes. Consider working with an IP attorney to develop a comprehensive protection strategy.

Manufacturing businesses in Wisconsin typically need several types of insurance: general liability insurance, product liability insurance (especially important for manufacturers), property insurance, business interruption insurance, workers' compensation insurance (mandatory in Wisconsin), commercial auto insurance for company vehicles, equipment breakdown coverage, and potentially environmental liability insurance depending on your operations. Wisconsin manufacturers handling hazardous materials or producing consumer goods face higher liability risks and should consider higher coverage limits. Work with an insurance broker experienced in manufacturing to develop a comprehensive risk management plan.

Wisconsin zoning laws vary by municipality but generally designate specific areas for industrial and manufacturing use. Before purchasing or leasing property, verify the zoning classification allows your specific type of manufacturing. Some considerations include: proximity to residential areas (which may restrict operating hours or noise levels), environmental impact requirements, building code compliance, parking and loading requirements, and waste management facilities. Some municipalities offer special manufacturing districts with infrastructure advantages. Contact the local zoning office or economic development department early in your planning process to understand restrictions and potential variance procedures.