How to Start an LLC in Minnesota
To start an LLC in Minnesota, you must file Articles of Organization with Minnesota’s Secretary of State, pay a $135 filing fee, and get an EIN from the IRS. The complete steps to forming a Minnesota LLC are as follows:
- File Minnesota LLC Articles of Organization
- Pay the Minnesota Secretary of State $135
- Wait to receive your Certificate of Organization
- Get a Federal EIN tax ID for the LLC
- Create a Minnesota LLC Operating Agreement
- Take these documents to the bank and get a Minnesota LLC bank account
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Minnesota LLC Articles of Organization free download. When you're done filling out the form, submit it to your state.
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1 Day Minnesota LLC For $380 Total
How to File Minnesota LLC Articles of OrganizationTo form a Minnesota LLC, you file the LLC Articles of Organization in the following steps:
What is the Cost of a Minnesota LLC?
The Minnesota Secretary of State charges a $135 filing fee to submit Articles of Organization for your LLC. If you file online or in person, you’re also hit with an automatic expediting fee of $20.
When you hire Northwest, your total out-the-door cost is $380, including state fees and a full year of registered agent service.
How much does an LLC in Minnesota cost each year?
There is no filing fee for your Minnesota LLC’s Annual Renewal.
What are the Minnesota LLC taxes?
The Minnesota personal net income tax rates are:
5.35%: $0 to $25,389
7.05%: $25,390 to $83,399
7.85%: $83,400 to $156,910
The state sales tax rate is 6.875%, but cities and municipalities can add on local sales taxes as well, so the average sales tax rate sits at 7.245%.
The Minnesota Department of Revenue also collects an unusual tax/fee that’s simply called the “minimum fee.” The minimum fee affects businesses taxed as partnerships, S corporations and C corporations. If your Minnesota property, payroll and sales are high (roughly $990K+, although the number is adjusted each year for inflation), you’ll have to pay the fee, which starts at $200.
Is a Minnesota LLC Registered Office Required?
Yes, you must have a Minnesota registered office for your LLC, and Minnesota Statute Chapter 5 §36 states that all business entities registered or formed in Minnesota must designate a registered agent as well. You can be your own agent and list your own address as your registered office—but that address becomes a part of the permanent public record for your LLC. There are two downsides to this. First, if you need to update your address later on as your business grows and changes, you’ll have to file a Notice of Change with the Secretary of State and pay the $35 fee. Second, public data is a goldmine for data sellers, meaning your info will be sold and resold, leaving you with a mountain of junk mail.
Avoid these problems when you hire Northwest—no need to update addresses or sort through spam. And one last perk—with a commercial registered agent like Northwest, you don’t have to be available during business hours at your registered office. You can sleep in late. Attend meetings. Go on business trips. Take an extra long lunch to check out the new food trucks. And you won’t have to worry about missing a process server.
Minnesota LLC Versus Minnesota Corporation:
Minnesota charges the same filing fees for starting and maintaining both LLCs and corporations ($135 for Articles and no fee for Annual Renewals). Tax obligations can be similar as well (or vastly different) depending on your business’s tax election. Both LLCs and corporations can choose different tax types—for example, a typical LLC is taxed as a partnership or disregarded entity but can choose to be taxed as an S or C corporation.
With no significant cost advantage, many people choose their entity type based on how it operates. LLCs tend to be easier to manage, so they’re a common choice for small businesses and new business owners. While corporations are required to appoint directors and officers, members can manage their LLC themselves, meaning decisions and changes can often be made more quickly and easily. Corporations are more complex, but that’s not necessarily a disadvantage. Interested in forming a corporation? Here’s information on Minnesota incorporation.
Do I Need a Tax ID Number (FEIN) for a Minnesota LLC?
FEINs are required if your LLC has employees or files certain federal excise taxes. Plan to open a business bank account? You’ll need a FEIN. There are other situations where you might need a FEIN as well—vendors often request a FEIN when you establish credit, and local tax forms often require one as well. Basically, even if you don’t need one right this minute, you’re going to need one eventually. It’s not a burden to get one—they’re free from the IRS. If that one last piece of paperwork is one too many, you can even hire Northwest to apply for your FEIN for you when you sign up for our services.
Does a Minnesota LLC Need a Business License?
Minnesota doesn’t have a statewide general business license, but specific professions and business activities (from meat packing to nursing) require licensing. You can review licensing requirements on the state’s Minnesota Elicensing website. Cities and counties in the North Star State often have their own licensing requirements as well.
What is a Minnesota LLC Annual Renewal?
The Minnesota LLC Annual Renewal is a report your LLC must submit each year in order to update your LLC’s contact and ownership information. Filing the renewal is free. If you fail to file the renewal, however, your LLC will be dissolved by the state. At Northwest, we want your business to remain in business. When you sign up for our services, we’ll send you annual renewal notifications so you don’t forget to file. Or, hire us to file your renewal for you each year, so you’ll have one less thing to worry about.
Minnesota LLC Articles of Organization Requirements:
Your name must include “Limited Liability Company” or “LLC.” Most businesses go with “LLC.”
This Minnesota street address will become a part of the permanent public record of your LLC. Hire Northwest, and our address will go here.
You can list a person or a business that provides registered agent service, like Northwest. We have provided expert Minnesota registered agent service for years.
Minnesota LLC Organizer
Your organizer is the person who signs and submits your Articles of Organization. Your organizer has to include their name and street address, but it doesn’t have to be anyone in your LLC. When you hire Northwest, we’ll be your organizer.
You must include an email. The Secretary of State uses the email to forward official notices. If you decide to put your own email, be sure to tick the box to exclude the email from requests for bulk data. This won’t protect you from spam and data miners entirely, but it’ll help. Or, hire us and you can list our email here.
Name and Phone Number
Just like everything else in your Articles of Organization, the phone number you put becomes part of the public record—and a target for data buyers to sell and resell. We allow our clients to put our phone number and information here to save you from endless annoyance.