Wisconsin and Sales Tax: Disregarded Entities are now Disregarded!

Are you operating a disregarded entity (i.e. single-member limited liability company or qualified subchapter S corporation subsidiary) in Wisconsin? If so, then you need to be aware of the law change that took effect July 1, 2009.

Effective July 1, 2009, a single-owner entity that is disregarded as a separate entity (i.e., the single-owner entity and its owner are treated as a single entity) for Wisconsin income and franchise tax purposes under Chapter 71 of the Wisconsin Statutes is also disregarded as a separate entity for purposes of Wisconsin sales and use taxes.

Prior to July 1, 2009, a single-owner entity that was disregarded as a separate entity for Wisconsin income and franchise tax purposes was treated as an entity separate from its owner for Wisconsin sales and use tax purposes.

For more information, see Wisconsin's website.