We’ve put together a free step-by-step guide on how to set up an LLC in Minnesota. We want you to have a clear idea of how to set up and manage an LLC for your state. We’ve tried to make sure you have the information you need right at your fingertips. Each step has instructions and links to the sites for you to fill out the forms in the correct order. So, let’s set up your Minnesota LLC right now!
A few points to remember before setting up your LLC in Minnesota
When you set up an LLC in Minnesota you’ll need a few things before you get started. This section will help you get your checklist in order.
A Unique Business Name
Every business in the state must be unique. You’ll need to search for a Minnesota LLC name. Go to Business & Liens: Search Business Filings to make sure yours is not taken.
An LLC Designator
You must have an LLC designator in your name in one of the following formats.
- LLC (most common)
- Limited Liability Company
Now that you have your unique business name, it’s time to register it with the state of Minnesota. Let’s get down to business.
A Registered Agent
In most states, a registered agent is a person or a company that accepts “Service of Process” for your Minnesota LLC. A registered agent will receive any subpoenas, notices, and other legal, and tax documents sent to your business by the Minnesota Department of Revenue.
If you’re opening a business in Minnesota but you aren’t a resident, you’ll need to get a registered agent in that state. The requirements for a registered agent are as follows:
An Individual:
- Must be 18 and be a resident of the state
- Must be authorized to do business in the state.
- Must have a physical street address located in Minnesota
A Company
- Must be authorized to do business in the state
If you meet the above criteria, you can be your own registered agent. Or you can set up a friend or family member to be your registered agent.
You can also hire a commercial Registered Agent. A company that provides their name and address to receive legal documents from the state.
Hot Tip
The nice part of using a company is that their address is used instead of yours. As the business address will be public knowledge. By using a registered agent, you can protect and secure your own address.
Step 1: Register Your Business Name
To Set up an LLC in Minnesota you need to reserve your business name. This way during the process no one can steal the name of your company.
You’ll need to reserve your name at the Business & Liens: Create Online Account. Or download the Name Reservation Form and apply for it by mail. The fee for reservation of your business name is $55 for online filings and $50 for mail filings.
You can also file for a Certificate of Assumed Name by mail or online to the Minnesota Secretary of State to do business in Minnesota even without a legal entity name. The filing fee is $50 online and $30 by mail.
Step 2: File Your Articles of Organization in Minnesota
Setting up an LLC in Minnesota is easy, especially for single-member LLCs. Just go and sign up to Business & Liens: Create Online Account. Online filing will give you immediate approval.
You can just directly file the Articles of Organization even without a reservation. Easy peasy.
If you don’t want to file online, you can download and fill out the Articles of Organization form. It takes 4 to 7 business days to get an approval back.
Fees: In Minnesota, the cost of setting up your LLC and filing the Articles of Organization is $155 online and $135 by mail.
Step 3: Complete Your Minnesota LLC Operating Agreement
An operating agreement is a key document used by LLCs and partnerships. It outlines the business’ financial and functional decisions including rules, regulations, and provisions. This describes how your LLC will operate internally. For more information on operating agreements, you can check out the Small Business Administration’s article on basic operating agreements.
Hot Tip
You are not required to file an Operating Agreement with your state. But it may be vital to have it, especially if there are multiple members of your LLC.
Step 4: Get Your Federal Tax ID Number (EIN)
Once your Minnesota LLC has been approved it’s time to get your Federal Tax ID Number from the IRS.
Your EIN is the social security number of your business. Keep it well protected. You’ll use this number to open bank accounts, file tax documents, apply for loans, and many other uses. It also protects your social security number when doing business with other businesses like merchant accounts, 1099s received, etc.
To apply for your EIN you can go to IRS EIN/Tax ID Application. Make sure you pick the correct Business Entity Type.
Quick Note
You can only file online if you have a Social Security Number (SSN) or Taxpayer ID (ITIN). Otherwise, you’ll have to mail in the forms and wait for the response. If you don’t have an SSN, on Form SS-4, where it asks for your SSN, ITIN, or EIN (line 7b), write “Foreign”. Your EIN application will then be approved without the need for having an SSN.
Step 5: File Your LLC Annual Renewal
Your Minnesota LLC is required to file an annual renewal with the Minnesota Secretary of State. To file online go to Business & Liens: Create Online Account. You will get an approval immediately.
If you want to file by mail, download and fill out the Annual Renewal Form. You will get approval within 4 to 7 business days after you send it by mail.
There is no ($0) filing fee if your LLC is in good standing. But failure to file will dissolve your business and you need to pay for the reinstatement. You will spend $25 for mail and $45 for online filings.
Hot Tip
File your annual renewal before the 31st of December each year to avoid your business shutting down.
Taxes, Permits, and Licensing in Minnesota
To do business in Minnesota you will need to file tax returns, and hold permits and licenses in your county or city.
Minnesota LLC must apply for necessary business licenses and or permits. This depends a lot on the type of business and the location of your business.
Aside from business licenses and permits, all LLCs must also pay appropriate taxes and meet obligations with the Minnesota Department of Revenue.
Never miss a deadline
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Putting it All Together
Now that you can set up an LLC in Minnesota online it shouldn’t take more than an hour or two to get up and running. The Minnesota Secretary of State’s website is very easy to navigate and following the five steps above will help you get your talents and ideas to market faster.
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