How to close a restaurant in Wisconsin requires attention to the state's specific rules on final pay timing, liquor license disposition, and the Wisconsin Department of Revenue's requirements for final sales tax returns. Here is what Wisconsin restaurant owners need to know.
Final paycheck requirements in Wisconsin
Wisconsin requires that final wages be paid no later than the next regular payday after an employee's last day of work. If the employee is discharged (fired or laid off), the final paycheck must be paid by the next regular payday or within one month of the date of separation, whichever is sooner.
Wisconsin does not require employers to pay out accrued vacation upon termination unless the employer's written policy promises it. However, Wisconsin courts have held that if an employer's policy creates a reasonable expectation of vacation payout, the employer may be bound by it even without an explicit written promise.
The Wisconsin Department of Workforce Development (dwd.wisconsin.gov) enforces wage payment laws. Employees who are not paid on time can file a wage claim, and employers can face penalties plus interest on unpaid wages.
Liquor license rules in Wisconsin
Wisconsin liquor licenses are issued by local municipalities. The Wisconsin Department of Revenue (revenue.wi.gov) oversees the overall licensing framework, but individual cities and counties issue the actual licenses.
Wisconsin has a quota system for Class B liquor licenses (full liquor) in most municipalities, which means licenses may have secondary market value. Before surrendering a license, check with the issuing municipality about whether there is a waiting list for licenses -- if there is, your license may be transferable to a buyer on that list.
To surrender a Wisconsin liquor license, notify the issuing municipality in writing before your closure date and return the physical license. Licenses are typically non-transferable directly, but a buyer can apply for a new license and may be able to move to the front of any waiting list if you are surrendering.
Sales tax final return in Wisconsin
Wisconsin requires businesses to file a final sales tax return with the Wisconsin Department of Revenue when closing. The final return covers the period from your last return through your closure date.
You must also cancel your Wisconsin seller's permit. Notify the Department of Revenue in writing or through their online portal (My Tax Account at tap.revenue.wi.gov) that you are closing and request cancellation of your permit.
Wisconsin's sales tax rate is 5 percent at the state level, with a 0.5 percent county tax in most counties. Restaurants must remit all collected sales taxes before closing.
WARN Act considerations in Wisconsin
The federal WARN Act requires employers with 100 or more full-time employees to provide 60 days advance notice before a plant closing or mass layoff. Most independent restaurants in Wisconsin do not meet this threshold.
Wisconsin does not have a state-level WARN Act equivalent. If your restaurant has fewer than 100 full-time employees, you are not subject to WARN Act notice requirements.
LLC dissolution in Wisconsin
If you operated your restaurant as a Wisconsin LLC, you must file Articles of Dissolution with the Wisconsin Department of Financial Institutions (wdfi.wi.gov). The filing fee is $20 for domestic LLCs. You can file online through the DFI's online filing system.
Before filing for dissolution, pay all outstanding Wisconsin taxes. The DFI will not process the dissolution if there are outstanding tax obligations with the Department of Revenue.
Wisconsin-specific closing checklist
- Notify employees and pay final wages per Wisconsin timing requirements
- File final Wisconsin sales tax return and cancel seller's permit
- Notify local municipality of liquor license surrender or transfer
- File final Wisconsin payroll tax returns with the Department of Workforce Development
- File Articles of Dissolution with Wisconsin Department of Financial Institutions ($20 fee)
- Cancel Wisconsin business license if applicable
- Notify Wisconsin Department of Agriculture, Trade and Consumer Protection of food establishment closure
Related guides: How to close a restaurant: the complete guide | What happens to employees when a restaurant closes? | Restaurant liquor license: what happens when you close