Minnesota LLC Costs
When you form an LLC, or limited liability company, in Minnesota, you are accessing liability protection, special tax breaks and incentives, and a flexible management structure. Small business owners and entrepreneurs commonly believe that LLC formation is complicated and costly. But, it is actually straightforward and worth the investment for some business owners.
Recommended LLC services
Costs to start an LLC in Minnesota
LLC Articles of Organization ($155)
- You must file your Articles of Organization with the Minnesota Secretary of State.
- The cost to file your Minnesota Articles of Organization is $155.
- Minnesota offers expected services for LLC formation for an additional fee of $50 in person and $30 by mail.
Minnesota annual renewal (free)
- In Minnesota, you must file an annual report with the Secretary of State.
- You can file your annual report online using the Minnesota Secretary of State website.
- Or, you can complete the annual renewal form and submit it by mail.
- The state of Minnesota does not charge an annual fee or report fee for your annual renewal report.
- You must submit your annual report by the 31st of December every year.
Minnesota registered agent fee (varies between $50 to $300)
- The Minnesota Secretary of State requires that you appoint a registered agent when forming an LLC in the state.
- You are alerting the Secretary of State that someone will be available to accept tax notices, subpoenas, and other necessary correspondence.
- You can appoint anyone as a registered agent if they meet the requirements, including yourself.
- The cost for obtaining a registered agent will differ depending on your chosen service, your LLC needs, and state filing fees.
Fees to form a foreign LLC in Minnesota ($205 online)
- If you already have an existing LLC in a different state, you will need to register your LLC as a foreign LLC.
- You can register as a foreign LLC online using the Minnesota Secretary of State website.
- Or, you can complete the Certificate of Authority to Transact Business in Minnesota form and submit it by mail.
- The LLC filing fee to register a Minnesota foreign LLC is $205 if you file online and $185 by mail.
LLC name reservation fee ($55 online)
- You do not have to reserve your LLC name in Minnesota prior to LLC formation.
- But, by reserving your company name, you are ensuring no one else can register the same name.
- An LLC name in Minnesota must be unique.
- You can reserve an LLC name in Minnesota for up to 12 months before formation.
- You can reserve your company name online using the Minnesota Secretary of State website.
- Or, you can complete the Name Reservation | Request for Reservation of Name form and submit it by mail.
- The cost to reserve an LLC name in Minnesota is $55 if you file online and $35 if you file by mail.
DBA filing fees in Minnesota ($50 online)
- DBA stands for ‘doing business as’’ A DBA, or assumed name, is a registered name that a person or company uses to operate under that is not the legal name.
- You must file a DBA if you intend to use a business name that is not the legal name of your Minnesota LLC.
- When you register a DBA in Minnesota, no one else can you use the same name.
- You can register your DBA online with the Secretary of State.
- Or, you can complete the Assumed Name | Certificate of Assumed Name form and submit it by mail.
- A DBA in Minnesota costs $50 online or $30 if you file by mail.
Cost of certified document copies ($8)
- You can order your certified LLC document copies using the Minnesota Secretary of State website.
- Or, you can order them by completing the Business Certificate Copy Request form and submitting it by mail.
- The cost of your certified LLC documents in Minnesota is $8.
Certificate of Good Standing ($15 online)
- Banks and money lenders will require a Certificate of Good Standing before allowing you to open a business bank account.
- You can order your Certificate of Good Standing online using the Minnesota Secretary of State website.
- Or, you can complete the Business Certificate Copy Request form and submit it by mail. Be sure you check the box for your Certificate of Good Standing.
- The filing cost for a Certificate of Good Standing is $15 online and $5 by mail.
Foreign LLC alternate name reservation fee ($55 online)
- Minnesota does not require that you reserve a foreign LLC name before formation.
- If your LLC name from another state is already taken in Minnesota, you must register a new name.
- You can reserve your foreign LLC name online using the Secretary of State’s website.
- Or, you can complete the Foreign Corporation, Cooperative & Limited Liability Company | Alternate Name form and submit it by mail.
- The cost to reserve a foreign LLC name is $55 online, or $35 if you file by mail.
Steps to start an LLC in Minnesota
Choose a business name
- You will need to consider a few things when deciding on an LLC name in Minnesota.
- Your LLC name in Minnesota must be unique.
- An LLC name must meet all Minnesota LLC name guidelines.
- You will want to check for web domain availability to keep branding simple.
- When checking for availability, you will use the Minnesota SOS website to conduct a name search.
LLC name reservation fee
Minnesota does not require you to reserve an LLC name before formation.
The state allows you to reserve an LLC for up to 12 months before formation.
You can reserve your company name online or complete the Name Reservation | Request for Reservation of Name form and submit it by mail.
The cost to reserve a company name in Minnesota is $55 online, and $35 by mail. An LLC name is good for up to 120 days. Minnesota does not require you to reserve an LLC name.
Appoint a Minnesota registered agent
The state of Minnesota mandates that you appoint a registered agent when forming an LLC.
The price for a Minnesota registered agent or service varies beetween $50 and $100 a year. The cost depends on the state and your LLC needs.
A registered agent in Minnesota is an individual or business entity that receives tax forms, legal documents, subpoenas, civil notices, service of process, and other official government correspondence on behalf of a sole proprietorship, corporation, or LLC.
The registered agent you choose must be a Minnesota resident or a registered agent service authorized to conduct business in the state.
- Starter Plan – $39 a year plus State Fees
- Pro Plan – $149 a year plus State Fees
- Premium Plan – $249 a year plus State Fees
ZenBusiness offers a stand-alone registered agent service. The price is $99 per year.
- Total Out The Door Minnesota LLC Formation Service Package – $50 month and includes:
- Minnesota State Fee
- Filing Service Fee
- Registered Agent
- Tax ID
- Annual Plan – $225 plus State Fees a year
- Economy – $79 plus $153 Minnesota filing fees
- Standard – $329 plus $153 state filing fees
- Express Gold – $349 plus $255 state filing fees
File Minnesota Articles of Organization
You will file your Minnesota LLC Articles of Organization with the State of Minnesota.
You can file online using the Secretary of State Business Portal.
Or, you can complete the Minnesota Limited Liability Company | Articles of Organization form and submit it by mail or in person.
The Minnesota LLC cost to file the Articles of Organization is $155 online, or $135 if you file by mail.
You can expedite the LLC filing for an additional fee – $50 for in-person filings and $30 for mail filings.
Minnesota Secretary of State — Business Services
Retirement Systems of Minnesota Building
60 Empire Drive, Suite 100
St Paul, MN 55103
The Articles of Organization form will ask you for specific information about your LLC.
- LLC name and address
- Registered agent information
- LLC organizer(s) contact information
The fee in Minnesota for filing your LLC Articles of Organization is $155 online, and $135 if you file by mail.
Get a Minnesota LLC EIN
An Employer Identification Number, or EIN, can also be referred to as a Federal Employer Identification Number (FEIN) or Federal Tax ID Number (FTIN).
An EIN Is a 9-digit number that acts like a Social Security Number for LLCs for income tax purposes. The Internal Revenue Service (IRS) assigns an EIN for no cost to the LLC.
Minnesota will require you to obtain an EIN if you are a sole proprietorship converting into an LLC.
Applying for an EIN is a simple process online through the IRS website.
Business banking for a Minnesota LLC
You will want to keep your personal banking and business accounts separate from one another. It will protect your assets and credit scores.
In Minnesota, a bank will require copies of your Articles of Organization, an operating agreement, and your EIN.
Business banking accounts are generally free, and do not have additional charges or fees.
Business attorney fees in Minnesota
Hiring a business attorney is helpful during the LLC formation process. It helps to ensure that the process remains manageable and you have someone that will handle future business-related issues.
A business attorney typically will offer you a free consultation if you are a first-time client.
Professional services such as LegalZoom and Rocket Lawyer offer LLC formation packages that include comprehensive legal services.
On average, a business lawyer in Minnesota will cost $300 per hour.
LLC taxes in Minnesota
- Your Minnesota LLC is considered a pass-through entity. You will file your personal tax return rather than LLC’s state tax return.
- Using the Minnesota Department of Revenue website, you must register for a seller’s permit.
- The Minnesota state tax rate is 6.875%, and a max local and county rate of 2.00%.
- Minnesota has an annual franchise tax that applies to multi-member LLCs with more than $970,00 in property, payroll, and sales. You can file online or complete the form and submit it by mail to the Department of Revenue.
- You must register for Unemployment Insurance Tax through the Minnesota Department of Employment and Economic Development.
- In Minnesota, you must also enroll in Employee Withholding Tax through the Department of Revenue website.
- Minnesota state taxes are complicated, especially if you qualify for the annual franchise tax. LLCs benefit from hiring tax accountants because it helps to avoid fines, fees, and possible dissolution.
Business licenses and permits in Minnesota
The business licenses and permits you will require will vary depending on where your LLC’s principal office is located and the type of business.
You can use the Minnesota Department of Employment and Economic Development website to search for what business license you may need for your LLC.
A business licence in Minnesota varies between $50 to $150. The total cost of permits and licences will depend on where your LLC is, and the type of LLC.
Every local city and county office will have different rules and regulations regarding Minnedosta permits and business licenses. You will want to contact the office for questions about the process, price, and office hours.
In Minnesota, some LLC documents may require a notarization from a notary public.
If you cannot find one of your own, most government agencies have a notary on staff.
Per Minnesota law, a notary public can only charge a max of $5 per notorial act.
Employer obligations in Minnesota
- In Minnesota, you have specific employer obligations if you hire employees.
- You must verify with the federal government that your employees are eligible to work in the US using Form I-9 from the USCIS Website.
- You must enroll in worker’s compensation insurance.
- Using the Minnesota New Hire Reporting Center, you must report all new hires online.
- You can find a complete list of Minnesota employer obligations.
Benefits of a Minnesota LLC
- In Minnesota, business banking is more accessible when you form an LLC. Bankers and financial institutions require that an individual open an LLC banking account separate from a personal bank account.
- LLCs and other business structures have different compliance requirements in Minnesota. For example, incorporations must answer to shareholders and stock owners when they make critical business decisions.
- Your LLC is a pass-through entity in Minnesota. Your earnings are only taxed once through your personal tax return.
- By forming an LLC in Minnesota, you are ensuring that you are not double-taxed in other ways. C-corporations, for instance, are double-taxed, while LLCs are not.
- Minnesota has business incentives that are only available to LLCs. DEED Financing Programs and Minnesota Opportunity Zone Program are both available for LLCs.
How long does it take to register an LLC in Minnesota?
If you file in person or by mail, it can take up to 4 to 7 days for the Minnesota Secretary of State to process your LLC formation documents. Online registration is approved instantly.
Minnesota offers expected services for an additional fee of $50 in person and $30 by mail.
How do I dissolve my Minnesota LLC?
You will want to dissolve your Minnesota LLC to avoid ongoing costs and fees from the state. You will file your Articles of Dissolution by completing the form and submitting it by mail.
The filing cost for LLC cancellation is $35 by mail and $55 in person.
Are there publishing requirements for Minnesota LLCs?
Unlike Arizona and New York, Minnesota has no published requirements for new LLCs.
Do I need a business operating agreement for my LLC in Minnesota?
You are not required to form or submit an LLC operating agreement.
However, it is a good idea for LLCs to have an operating agreement in the company files to avoid future misunderstands between departments.
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