Wisconsin Senate Bill SB881

Wisconsin 2023-2024 Regular Session

• Introduced: 1/5/24
• Refer: 1/5/24
• Report Pass: 2/27/24
• Failed: 4/15/24

Caption

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

Impact

The passage of SB881 would facilitate the formation of LLCs by a demographic that has previously faced challenges in accessing resources for starting businesses. By allowing high school students to qualify as student entrepreneurs, advocates suggest that the bill will foster a culture of entrepreneurship at an earlier age. The state also anticipates that cultivating such entrepreneurial talent could contribute positively to the local economy, as more young people will engage in business start-ups.

Summary

Senate Bill 881 aims to amend existing statutes regarding the filing fees associated with limited liability companies (LLCs) in Wisconsin. The current law imposes a filing fee of $130 for submitting LLC articles of organization with the Department of Financial Institutions (DFI). However, exceptions exist for student entrepreneurs where the fee is waived if all members or organizers belong to this category. The bill looks to broaden this definition significantly by including students enrolled in public, private, or tribal high schools, in addition to those in postsecondary institutions. This expansion is intended to encourage younger individuals to explore entrepreneurship by reducing financial barriers.

Conclusion

Overall, Senate Bill 881 appears to be a legislative effort to bolster youth engagement in entrepreneurship by revising the regulatory landscape surrounding LLC formation for young individuals. As the bill progresses through the legislative process, it will be essential to balance encouragement of business initiatives among youth with the necessary safeguards to equip them for success.

Contention

Despite its intentions, SB881 may face opposition from stakeholders who argue about the preparedness of high school students to navigate the complexities of business management. There is concern regarding whether individuals of that age group, often with limited experience and understanding of corporate responsibilities and obligations, should be able to establish LLCs. Critics might argue that while encouraging entrepreneurship is vital, oversight and substantial guidance are also necessary to ensure these young entrepreneurs are supported adequately.