Bookkeeping and financial strategy for small businesses in Beaver Dam and throughout Wisconsin.

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Do I need a Wisconsin business license for my service business?

Wisconsin does not have a statewide general business license. There is no single permit or registration that every service business needs before it can start operating. This surprises many new business owners who expect a straightforward application they can fill out and be done with.

That said, there are several other requirements that might apply depending on what your service business does and where it’s located.

If your business makes taxable sales, you need a Wisconsin sellers permit from the Department of Revenue. Many service businesses assume they’re exempt because they sell services rather than physical products, but some services are taxable in Wisconsin. Landscaping, janitorial work, and certain repair services can fall into gray areas. If you’re not sure whether your services are taxable, it’s worth checking before you start collecting revenue rather than finding out later that you should have been charging and remitting sales tax all along.

Certain trades require state-level licensing through the Department of Safety and Professional Services. Electricians, plumbers, HVAC technicians, and general contractors all need credentials before they can legally perform work in Wisconsin. These aren’t optional and carry real penalties if you operate without them. If your service business falls into a regulated trade, that licensing comes before anything else.

Many Wisconsin municipalities also require their own business licenses or permits. Beaver Dam, Madison, Milwaukee, and most cities have their own registration requirements that vary widely. Some are simple registrations with a small annual fee. Others involve inspections or zoning approvals. Your city or village clerk’s office can tell you exactly what applies in your area.

It’s also worth noting that forming an LLC or registering your business with the state is separate from licensing. Having an LLC doesn’t mean you’re licensed, and being licensed doesn’t require a specific business structure. These are two different tracks that often get confused.

The short answer is that you probably don’t need a “business license” in the way most people picture it. But you likely need a combination of a sellers permit, trade credentials, and local registrations depending on your situation. Getting these sorted out early saves headaches down the road. If you’re starting a service business in Wisconsin and want help making sure your financial setup matches your legal setup, the Dodge County bookkeepers at Rock Steady can point you in the right direction.

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More Questions

How do I track crew labor costs for job profitability?

Use a time-tracking tool like QBO Time so crews clock into specific jobs. Then load the full labor burden including payroll taxes and workers' comp onto those hours so your job profitability reports reflect what labor actually costs you.

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Do I need to issue 1099s to cleaning subcontractors?

Yes, if you paid a subcontractor $600 or more during the year via check, cash, or ACH and they aren't incorporated. Collect a W-9 from every subcontractor before you pay them the first time.

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How do I track recurring cleaning contracts in QuickBooks?

Use recurring invoices for each contract and set up classes or customer types to separate monthly contract revenue from one-time jobs. This gives you a clear view of your monthly recurring revenue.

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How do I handle material markups in QuickBooks for a landscaper?

Set up products and services items in QuickBooks Online with both a cost and a sales price. When you add those items to invoices, QBO tracks the cost and revenue separately so your gross margin reports stay accurate.

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How do small law firms handle cost advances vs expenses?

Client cost advances like filing fees and expert witness payments are not firm expenses. They are client receivables that sit on the balance sheet until the client reimburses the firm.

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How do retailers handle shrinkage and inventory adjustments?

Compare a physical count to what your books say you should have. The difference is shrinkage, recorded as a loss expense with a matching reduction to your inventory asset. Industry average runs 1-2% of sales.

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Small business bookkeeping firm based in Beaver Dam, Wisconsin. Bookkeeping, financial strategy, and fractional CFO services built around helping owners understand their numbers and plan ahead. Founded by Laura Prater, a QuickBooks Certified ProAdvisor with over a decade of accounting experience.

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