Wisconsin Assembly Bill AB1226

Wisconsin 2025-2026 Regular Session

• Introduced: 3/19/26
• Refer: 3/19/26
• Failed: 3/23/26

Caption

An Act to amend 183.0122 (2) (a) (intro.); to create 183.0122 (2) (e) of the statutes; Relating to: the fee for filing limited liability company articles of organization with the Department of Financial Institutions. (FE)

Summary

AB1226 would create a new filing-fee exemption for limited liability companies formed entirely by “youth entrepreneurs.” Under current law, the Department of Financial Institutions charges a $130 fee to file LLC articles of organization, but that fee is already waived when all organizers or members are “student entrepreneurs” who are at least 18 years old and enrolled in a Wisconsin postsecondary institution. This bill adds a parallel category for individuals ages 12 through 17 who organize an LLC or will be members when it is formed. If all LLC members upon formation are youth entrepreneurs, and any organizers who will not become members are also youth entrepreneurs, DFI would be prohibited from collecting the filing fee. The bill also updates the general fee statute to reference the new exception and applies the change to articles of organization filed on or after the effective date, which is the first day of the second month after publication.

Impact

The bill would amend Wisconsin Statutes section 183.0122 governing LLC filing fees and create a new exemption in subsection (2)(e). Its practical effect is to reduce the cost of forming an LLC for qualifying minors and to expand the state’s existing support for entrepreneurial formation beyond college students to younger business founders. The measure affects the Department of Financial Institutions’ fee collection authority and could reduce fee revenue associated with eligible filings.

Sentiment

The available record shows no committee transcript, recorded votes, or floor debate, so there is no documented public sentiment from legislative discussion. Based on the bill text, the proposal appears generally supportive of youth entrepreneurship and small-business formation, with the fiscal note indicating the measure was reviewed for budgetary impact. The absence of opposition or amendments in the provided materials suggests the bill had not yet generated visible controversy at the time of the last action.

Contention

The main policy question raised by the bill is whether minors as young as 12 should receive the same LLC filing-fee relief already granted to adult student entrepreneurs. Potential concerns could include the appropriateness of business formation by minors, the scope of parental or guardian involvement not addressed in the text, and the loss of filing-fee revenue to the state. No specific opponents, supporters, or disputed provisions are identified in the provided materials, so any contention is inferential rather than documented.