WORKERS COMPENSATION

Who has to carry workers' compensation insurance?

• Employers who employ three or more workers on a full or part-time basis OR
• Employers who employ one or more workers, on a full or part-time basis, and who pay gross, combined wages of $500 or more in any calender quarter, for work done in Wisconsin, must have insurance in place

What happens if I don't carry workers' compensation insurance?

• Employers may be subject to a fine from the State of Wisconsin
• Employers may be forced to pay medical bills for injuries

How should limousine companies be coded?

• Limousine companies should also be classified under code #7380.  There have been mistakes where limousines have been classified as Taxis at a much higher cost. 

Who can I call with questions?

• Please call Tom Delahunt at Schueller/Harrington for more information at 414-765-2300 ext. 204.

ALCOHOL

Can a limousine company supply alcohol?

• No, limousines companies can not sell or gift alcohol.  DON'T DO IT!  Let the customers supply their own alcoholic beverages.

What are the Wis. State Statutes regarding the selling or gifting of alcohol?

• Wis. State Statute 125.315 and 125.67 make it illegal to give away beer and liquor to evade alcohol laws.
• Wis. State Statute 346.935(4)(b) permits open intoxicants in a limousine or motor bus which is operated by a valid chauffeur.
• Wis. State Statute 125.04(1) requires a license to "sell" alcohol.  "Sell" includes ANY transfer of alcohol or any shift, device or scheme or transaction to obtain alcohol.
• Wis. State Statute 125.61(6) requires face-to-face sales of alcohol to consumers at alcohol licensed premises.

Who should I contact with questions regarding these statutes?

• For more clarification on these Wis. State Statutes, please call Roger Johnson at 608-266-6757.  He can direct you to the correct District for your area.  

Sate Rental Vehicle Fee Effective April 1, 1998

What is the rental vehicle fee?

• A 5% fee is imposed on the gross receipts from providing limousine service.

Who is subject to the rental vehicle fee?

• If you provide limousine service, you are subject to the 5% rental vehicle (limousine service) fee. A limousine is a passenger automobile which has a capacity of 10 or fewer persons, excluding the driver, with 5 or more seats behind the driver, that is operated for hire, on an hourly basis, and is directed by the person hiring the limousine. It does not include taxicabs, hotel or airport shuttles or buses, buses employed solely in transporting school children or teachers, vehicles owned or operated without charge or remuneration by a business entity for its own purposes, vehicles used in carpools or van pools, public agency vehicles that are not operated as a commercial venture, vehicles operated as part of the employment transit assistance program under sec. 106.26, Wis. Stats., ambulances, or any vehicle that is used exclusively in the business of funeral directing.

Who should I contact with questions?

• You can contact any Department of Revenue office or write:

Wisconsin Department of Revenue
PO Box 8949
Madison, WI 53708-8949

Telephone:  608-266-2776 

Fax:  608-267-1030

E-mail:  Wisconsin Department of Revenue

Website:  www.revenue.wi.gov

EMPLOYEE OR INDEPENDENT CONTRACTOR

Is my chauffeur an employee or independent contractor?

• You are best off to put all employees on your payroll system.

This is a nine part list which must be met before a person can be considered an independent contractor rather than an employee.  To qualify as an independent contractor and not an employee, a person must meet and maintain all nine of the following requirements:

1. Maintain a separate business.
2. Obtain a Federal Employer Identification number from the Federal Internal Revenue Service (IRS) or have filed business or self-employment income tax returns with the IRS based on the work or service in the previous year.
3. Operate under specific contracts.
4. Be responsible for operating expenses under the contracts.
5. Be responsible for satisfactory performance of the work under the contracts.
6. Be paid per contract, per job, by commission or by competitive bid.
7. Be subject to profit or loss in performing the work under the contracts.
8. Have recurring business liabilities and obligations.
9. Be in a position to succeed or fail if business expense exceeds income.

Who do I contact if I have questions?

•  You can contact the State of Wisconsin Department of Workforce Development at:

Worker's Compensation
201 East Washington Avenue
PO Box 7901
Madison, WI 53707-7901

Telephone:  608-266-1340

Fax:  608-266-6827

Website:  www.dwd.state.wi.us/

LICENSING REQUIREMENTS

Commercial Driver's License (CDL) means a license issued by a State or other jurisdiction, in accordance with the standards contained in 49 CFR Part 383, to an individual which authorizes the individual to operate a class of a commercial motor vehicle.

Commercial Driver's License Information System (CDLIS) means the CDLIS established by FMCSA pursuant to section 12007 of the Commercial Motor Vehicle Safety Act of 1986.

Commercial Motor Vehicle (CMV) means a motor vehicle or combination of motor vehicles used in commerce to transport passengers or property if the motor vehicle:

• Has a gross combination weight rating of 11,794 kilograms or more (26,001 pounds or more) inclusive of a towed unit(s) with a gross vehicle weight rating of more that 4,536 kilograms (10,000 or more); or
• Has a gross vehicle weight rating of 11,794 or more kilograms (26,001 pounds or more); or
• Is designed to transport 16 or more passengers, including the driver; or
• Is of any size and is used in the transportation of hazardous material as defined in this section.

City of Chicago  - MPEA Permit

There is an on-line application for the City of Chicago MPEA Permit.  To complete this application, your company must have an affidavit for new accounts form and an IRIS number.  Please call Customer Service at 312-747-4747 for help with those two items.  Once you have an IRIS number you can go to the on-line application for  MPEA Permit Control Sheet.

This link MPEA Permit Control Sheet. can be used for renewals as well.

Please see file below answering any questions regarding limousine permits and amounts due for the City of Chicago.

Limited Liability Companies

Many companies choose to formally organize as a limited liability company ("LLC") in the hope of obtaining limited liability protection from creditors or other potential claimants (such as person injury vectims).  In certain cases, a properly formed and operated LLC will limit a claimant/creditor's ability to collect to only those assets owned by the LLC and not personal or other assets of the LLC's members (i.e., owners), managers and employees.   A LLC should not replace good and comprehensive liability insurance.

A LLC may be organized by one or more persons who sign and deliver Articles of Organization ("Articles") to the Wisconsin Department of Financial Institutions ("DFI") for filing.  The Articles must include the following information, and may not include additional information:

• A statement that the LLC is organized under Wisconsin Statutes Chapter 183;
• A name for the LLC that contains the words "limited liability company (co.)" or ends with the abbreviation "LLC";
• The street address of the registered office and the name of the registered agent at that office;
• If management of the LLC is vested in one or more managers, a statement to that effect;
• The name and address of each person organizing the LLC; and
• If applicable, the delayed effective date and time of the Articles of Organization.

The DFI's filing of the Articles is conclusive proof that the LLC exists and is organized and formed according to Chapter 183.

An LLC may be managed by its members or by one or more managers.   The statutes provide for member-management as the default provision, but an LLC can specify in the Articles that it will be manager-managed instead.  Members and managers of an LLC are not held personally liable for the debts, obligations or liabilities of LLC, but may be held personally liable for their own misconduct.  Property acquired by an LLC is property of the LLC itself, and not the property of the members individually.  If the LLC is member-managed, then any member may transfer LLC property in the name of the LLC.  If the LLC is manager-managed, only the managers may transfer LLC property in the name of the LLC.

An LLC is not taxed as an entity, unless it expressly elects to be taxed in that fashion.  Thus, profits and losses are typically passed through to the members and only taxed once on the individual member level.  The withdrawal of a member will generally dissolve the LLC unless the remaining members choose to continue the LLC, or unless the operating agreement dictates otherwise.  LLCs can also dissolve upon the written consent of all members, by entry of a court decree or according to the terms of the operating agreement.

For more information you may contact:

Attorney Michelle L. Birschback
Steimle Birschbach, LLC
4221 Michigan Avenue, PO Box 2225
Manitowac, WI 54221-2225
Direct: 920-686-4904
Main:   920-683-3500
Fax:     920-683-9844
Email: michelle@steimlebirschbach.com
Website: www.steimlebirschbach.com

Information on this page is deemed reliable but is not guaranteed. Please contact the appropriate agency for more details.