Hudson and River Falls Business Licenses: Starting Near the Twin Cities

Hudson and River Falls sit on the Wisconsin side of the St. Croix River, within commuting range of the Twin Cities. St. Croix County grew 5.1% since 2020 as Twin Cities exurbs expanded east, and that growth brings two kinds of owners to these towns: people who live in Minnesota and want a Wisconsin business, and people who already run a Minnesota business and are adding a Wisconsin location or customer base.

If you are in either group, know this first: Wisconsin does not license businesses in general. Neither Hudson nor River Falls issues a general business license. Wisconsin licenses specific activities, so your paperwork depends on what you sell, how you sell it, and where your customers are.

This guide covers the Wisconsin filings, the sales tax setup, the activity licenses to check, and how Minnesota and Wisconsin taxes differ. It is informational content, not legal or tax advice.

Materials and Information to Gather First

• Your legal name, personal address, and the business street address (a physical location, not a P.O. box)
• Two or three candidate business names, each checked in the DFI corporate records search at apps.dfi.wi.gov/apps/corpsearch/Search.aspx
• A decision between an LLC and a corporation (covered in Step 2)
• A registered agent with a Wisconsin street address and an email address
• A payment method for the DFI filing fee ($130 for an LLC, $100 for a corporation) and the $20 seller's permit fee
• A written list of what you sell and any activity that might need a license, such as alcohol, food, lodging, or a regulated trade
• A federal EIN from the IRS if you plan to hire employees or form an LLC with more than one owner

Step 1: Confirm Whether Your Activity Needs a License

Forming an entity does not give you permission to sell anything. For most retail, service, and online businesses in Hudson and River Falls, the core requirements are the entity filing and a seller's permit. Activity licenses come from three places:

• State agencies: the Department of Safety and Professional Services (DSPS) licenses regulated occupations. DATCP, or a local health department acting as DATCP's agent, handles certain food activities.
• Your municipal clerk: alcohol and other activities the city lists. Confirm the current list and fees with the Hudson or River Falls clerk.
• County health offices: food, lodging, and recreation operations. Hudson falls under St. Croix County Public Health, which administers the county food, lodging and recreation ordinance (ch. 40). River Falls straddles St. Croix and Pierce counties, so confirm which county office covers your address.

Write down every activity your business will perform before you file anything. A license missed at the start is easier to fix than an unlicensed activity discovered later.

Step 2: Choose Your Entity Type and Name

Most small owners in these towns choose between an LLC and a corporation. The state filing fees are different:

• LLC: $130 filing fee for Articles of Organization, Limited Liability Company (Form 502), under sec. 183.0201 Wis. Stats.
• Corporation: $100 filing fee for Articles of Incorporation, Stock, For-Profit Corporation (Form 2), under ch. 180 Wis. Stats.

An LLC name must include 'limited liability company,' 'limited company,' 'LLC,' or 'LC,' and it must be distinguishable from other entities on DFI records. A preliminary check in the DFI database helps, but the name is not final until DFI examines and files your document. If you need time, you can reserve a name for 120 days for $15 using Form CORP1.

Tax treatment matters for the LLC decision. Wisconsin has no separate LLC franchise or privilege tax. By default, a multi-member LLC is taxed as a partnership and a single-member LLC as a disregarded entity, so profits pass through to the owners' Wisconsin individual income tax at graduated rates of 3.50% to 7.65%. An LLC that elects corporate treatment pays the 7.9% corporate rate. Confirm your election choice with a CPA before you file.

Step 3: Appoint a Registered Agent

Every Wisconsin LLC and corporation must continuously maintain a registered agent with a registered office in Wisconsin. The office address must match the agent's business office and must be a real street location. A P.O. box, mailbox service, or telephone answering service does not qualify. The entity cannot serve as its own registered agent.

An email address for the registered agent is required on your formation document and on every annual report, because DFI sends annual report forms and official notices to the agent. If you later change your agent or office, the statement of change costs $10 online or $25 on paper.

Step 4: File Your Formation Documents

You can file through the DFI Business Entity File Online system at dfi.wi.gov/Pages/BusinessServices/BusinessEntities/FileOnline.aspx. You can also use the Wisconsin One Stop Business Portal at onestop.wi.gov, which registers your business with DFI, the Department of Revenue, and the Department of Workforce Development in one pass. The One Stop route is worth using if you need a seller's permit at the same time.

Online filings are usually accepted on receipt, with immediate notice. DFI's statutory limit for processing new business filings is 5 business days. If you need faster handling, optional expedited service costs $100 on top of the filing fee, and the document is acted on by the close of business on the first business day after receipt.

Step 5: Register for a Seller's Permit

Wisconsin does not issue a general business license, but nearly every seller of taxable products or services must hold a seller's permit. You obtain it through the Department of Revenue's Business Tax Registration system at tap.revenue.wi.gov/BTR/. The initial permit costs $20 for a two-year period, and renewal costs $10 every two years. Confirm the current terms on the Department of Revenue new business page at revenue.wi.gov.

Step 6: Set Up Hudson Sales Tax and River Falls Sales Tax

Wisconsin's state sales tax rate is 5%, and local add-ons bring the total to 5.5% in both St. Croix County and Pierce County. That means the Hudson sales tax rate and the River Falls sales tax rate are both 5.5%, whether your sale is in Hudson or the St. Croix County portion of River Falls. The Pierce County portion of River Falls is also 5.5%. Confirm the rate for your specific address with the Department of Revenue before you start charging it, because rate questions for a particular location are best settled with the agency.

Set up the seller's permit before your first taxable sale. Charging the wrong rate or collecting tax without a permit creates cleanup work that is much more expensive than the registration itself.

Step 7: Get the Activity Licenses from the Right Office

• Alcohol: apply through the Hudson or River Falls municipal clerk. Confirm the application process and fees directly with the clerk's office.
• Food service, lodging, and recreation: contact St. Croix County Public Health for Hudson and for River Falls properties in St. Croix County. For River Falls properties in Pierce County, check with Pierce County. Ask before you sign a lease or buy equipment, since inspection requirements can affect your build-out.
• Regulated occupations: check with DSPS to see whether your trade or profession requires a state credential.
• Zoning and signage: check with the city planning or zoning office. Zoning approval is separate from every license above.

Step 8: Plan for Minnesota and Wisconsin Taxes

Minnesota owners often assume a Wisconsin business works like a Minnesota one. The differences that matter most are below.

Item	Wisconsin	Minnesota
State sales tax rate	5% state, 5.5% total in Hudson and River Falls	6.875% state rate
LLC filing fee	$130 (DFI)	Check with the Minnesota Secretary of State
Annual report	$25 online, $40 by mail	Check with the Minnesota Secretary of State
Personal income tax	Graduated, 3.50% to 7.65%	Check with the Minnesota Department of Revenue

There is no income tax reciprocity between Wisconsin and Minnesota. Minnesota's reciprocity agreements are only with Michigan and North Dakota, and the Wisconsin agreement ended after 2009. A Minnesota resident who works in Wisconsin or owns a Wisconsin business generally files in both states. Ask a CPA how to handle credits for taxes paid to the other state.

Also decide where the LLC lives. A Wisconsin LLC needs a Wisconsin registered agent and files its annual report with DFI, even if all the owners live in Minnesota. A Minnesota LLC that operates in Wisconsin should ask DFI whether it must register as a foreign LLC. The foreign LLC annual report is $80, due March 31.

Step 9: Calendar Your Annual Report

Wisconsin LLCs and corporations file an annual report each year after the year of formation. The report is due during the calendar quarter that contains your anniversary date: March 31, June 30, September 30, or December 31. For example, an LLC organized between October 1 and December 31 files by December 31. The LLC annual report (Form 5) costs $25 online and $40 by mail, because paper filing adds a $15 surcharge. The corporation annual report (Form 17) follows the same quarterly schedule and costs the same.

Common Mistakes to Avoid

• Using a P.O. box as the registered office. The address must be a physical Wisconsin location.
• Assuming that a city or county license covers your entity. Wisconsin licenses activities, so the question is always what you do.
• Waiting to register for a seller's permit until after your first sale.
• Charging a single 5.5% rate without confirming the rate for your address with the Department of Revenue.
• Forming a Wisconsin LLC and assuming Minnesota taxes no longer apply. Minnesota residents generally file in both states.
• Missing the annual report quarter. Put your quarter on a calendar on the day you file.

What to Expect After You File

Owners who file online and select the seller's permit at the same time typically receive their filing acceptance quickly, often on the day of submission. Plan for the statutory limit of 5 business days in case DFI needs more time. Once your entity is on file, most owners find that the remaining work is activity licensing, which can take longer than the state filing, especially for alcohol and food. Build that time into your launch date.

If your business is simple, the core steps are usually a DFI filing, a registered agent, a seller's permit, and an annual report calendar. If your business involves alcohol, food, lodging, or a regulated trade, expect additional steps and confirm each requirement with the agency that administers it.

This content is informational only and is not legal or tax advice. Fees, rates, and processing times can change, so confirm current figures on the agency pages listed above. For entity choice, tax treatment, multistate filings, or any licensing question, consult a qualified attorney or CPA before you file.