Wisconsin Assembly Bill AB951

Wisconsin 2023-2024 Regular Session

• Introduced: 1/12/24
• Refer: 1/12/24
• Report Pass: 2/7/24
• Refer: 2/7/24
• Failed: 4/15/24

Caption

The fee for filing limited liability company articles of organization with the Department of Financial Institutions. (FE)

Impact

If enacted, AB951 could significantly affect state laws regarding business formation for young entrepreneurs, promoting entrepreneurship at an earlier age. By allowing high school students to qualify for the same fee exemption, the bill may foster a generation of young business owners who are more inclined to start their own businesses while still in school. This shift in policy may contribute to enhanced economic development within the state by nurturing entrepreneurial skills and innovation among youth, potentially leading to job creation and a robust local economy.

Summary

Assembly Bill 951 aims to amend the provisions related to the filing fees for limited liability companies (LLCs) with the Department of Financial Institutions in Wisconsin. Currently, a $130 fee is imposed on the filing of articles of organization for LLCs. However, an exemption exists where this fee may not be collected if the members or organizers of the LLC are all classified as student entrepreneurs. The bill seeks to expand the definition of 'student entrepreneur' to encompass not only those enrolled in postsecondary institutions but also those attending public, private, or tribal high schools. This change is poised to encourage young individuals to explore entrepreneurship by reducing initial financial barriers.

Contention

Although the bill has the potential to facilitate business start-ups among younger populations, it may also encounter opposition. Critics may argue about the implications of extending such exemptions to high school students, questioning whether it provides an unintended advantage or creates disparities in the business landscape. Furthermore, concerns about the preparedness of young entrepreneurs to manage the complexities of business ownership might arise, leading to debates over the appropriateness of such changes in the legal framework surrounding LLC formation.