Forming an Minnesota LLC
(2025 Guide)
2025 LLC Guide
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forms your LLC with Northwest for $39 (60% off). Details inside.
How to Start an LLC in Minnesota (Step-by-Step Guide)
Discover how to start an LLC in Minnesota, our step-by-step guide. Learn the essential requirements and process to form your business today.
To establish an LLC in Minnesota, submit the Articles of Organization to the Minnesota Secretary of State. This process costs $155 and is completed within 1 day.
There are six steps to complete: Choose an LLC Name, Select a Registered Agent, File Articles of Organization, Create an Operating Agreement, Obtain an EIN, and Acquire a Minnesota Tax ID Number.
To form your LLC independently, you can follow our complimentary guide below. If you prefer professional assistance, we suggest hiring Northwest Registered Agent.
Need to save time?
Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).
(See why Northwest is #1: Northwest vs LegalZoom.)
What is the cost to establish an LLC in Minnesota?
The fee is $155 to form an LLC. This charge is for filing the Articles of Organization, the document that officially forms the LLC. For additional information on LLC Costs, refer to LLC Costs in Minnesota.
How long does it take to establish an LLC in Minnesota?
Filing by mail results in approval within 11-12 business days (excluding mail time). Filing online leads to immediate approval. Check How long does it take to get an LLC in Minnesota for any potential delays.
Here’s how to establish an LLC in Minnesota
1. Check Availability of Your LLC Name
Verify that your desired LLC name is available in your state. This is essential because two businesses cannot share the same name within the state. Begin by searching your preferred business name and comparing it to existing companies in the state. Use the Business Entities Search tool to ensure your LLC name is unique.
Additionally, acquaint yourself with the state’s naming regulations to ensure your LLC name is approved. For more detailed guidance, refer to our Minnesota LLC Name guide.
Note:
Most people choose “LLC”.
2. Select a Minnesota Registered Agent
The following step involves selecting a Registered Agent. A Minnesota Registered Agent is an individual or company responsible for receiving legal mail and state notices on behalf of your Minnesota Limited Liability Company.
Who is eligible to be an LLC Registered Agent? You have three options for appointing a Registered Agent:
You
A friend or family member
A Registered Agent Service
Minnesota mandates that LLC Registered Agents must maintain a physical street address within the state. PO Boxes are not permissible. The name and address of the Registered Agent will be included in public records.
If you lack an address in Minnesota or desire increased privacy, you can opt for a Registered Agent Service for your LLC.
We suggest Northwest Registered Agent
One of the aspects we appreciate most about Northwest is their willingness to allow you to use their office address for your LLC filing. This ensures your personal address is not listed in public records.
Additionally, they provide a service to scan any mail addressed to your LLC and upload it to your online account. Northwest offers exceptional customer service, and we trust them as our own Registered Agent.
Special offer:
Form your LLC with Northwest for $39 + state fee and get a free year of Registered Agent service.
(Read our Northwest Registered Agent review.)
3. Submit LLC Articles of Organization
To establish an LLC, you must submit the Articles of Organization to the Minnesota Secretary of State.
Filing the Articles of Organization online requires a $155 fee. This is a one-time charge to set up your LLC. If you prefer to handle this yourself, refer to our step-by-step guide: Minnesota Articles of Organization. Alternatively, you can hire a service to complete it on your behalf.
Need to save time?
Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).
(See why Northwest is #1: Northwest vs LegalZoom.)
4. Draft an LLC Operating Agreement
An LLC Operating Agreement acts as a complementary document to the Certificate of Formation. While the Certificate of Formation establishes your LLC, the Operating Agreement identifies the owners of the LLC.
Moreover, many banks require an Operating Agreement when setting up an LLC bank account. It is also invaluable if legal issues arise, as it demonstrates the proper management of your LLC. For these reasons, we advise all LLCs, including Single-Member LLCs, to have an Operating Agreement.
Additionally, an Operating Agreement is considered an “internal document.” This means you don’t need to file it with the state or the IRS (Internal Revenue Service). Simply keep a copy with your business records. You can download a free template below. Then, watch our Minnesota Operating Agreement video for a step-by-step guide on how to complete it.
Download a free LLC Operating Agreement:
Member-managed: Google Doc | Word | PDF
Manager-managed: Google Doc | Word
(What’s better? See Member-managed vs Manager-managed LLC)
5. Obtain an EIN for Your LLC
The following step is to secure a Minnesota EIN from the IRS for your LLC. Note: An EIN, also known as a Federal Tax ID Number or Federal Employer Identification Number, is essential.
An EIN is needed to:
– Identify your LLC for tax purposes
– Open a business bank account
– Apply for business licenses and permits
How much does an EIN cost? The IRS provides an EIN at no charge.
How long does it take to receive an EIN? Online applications are processed in 15 minutes, while mail or fax applications may take 1-3 months.
How can I obtain an EIN?
– US Citizens/Residents: With an SSN or ITIN, apply online. Follow these instructions: Apply for an EIN online.
– Non-US Residents: You can’t apply online, but you can obtain an EIN via fax or mail. See these instructions: How to get an EIN without an SSN or ITIN.
6. Obtain a Minnesota Tax ID Number
Most businesses in the state must secure a Minnesota Taxpayer Identification number. Your LLC will require this number if it:
offers taxable goods or services,
has a use tax obligation on purchases,
is a Multi-Member LLC,
or employs staff.
We advise obtaining a Tax ID number. You can acquire a Minnesota Tax ID number via the Minnesota Department of Revenue’s Business Registration.
What should I do after my LLC is approved?
After approval, there are several important actions to consider.
Open a Business Bank Account
It’s beneficial to set up a business bank account for your LLC. This simplifies accounting and record-keeping for your business finances. Moreover, maintaining a separate bank account for your business helps protect your personal liability by keeping business and personal finances distinct.
Obtain Business Licenses and Permits
While Minnesota doesn’t require a state general business license, your LLC might need local licenses or permits depending on its location. For instance, starting a daycare may require a license from the city or county. More details can be found on our Minnesota Business License page.
File Your LLC Annual Renewal
All Minnesota LLCs must file an Annual Renewal each year to remain in good standing with the state. Although referred to as the “Annual Report” in most states, Minnesota calls it “Annual Renewal,” but they are essentially the same.
How much does a Minnesota Annual Renewal cost? Filing your LLC Annual Renewal is free.
When is the Annual Renewal due? The deadline is December 31 each year.
When is my first Annual Renewal due? It’s due the year following your LLC’s approval. For instance, if approved on February 15, 2025, your first Annual Renewal is due by December 31, 2026.
How do I file my LLC Annual Renewal? You can file online or by mail, though online is recommended for ease. Follow our guide here: Minnesota LLC Annual Renewal.
File and Pay Taxes
LLCs themselves don’t pay federal taxes; instead, LLC Members do so as part of their personal tax returns. Here’s how LLCs are taxed:
A Single-Member LLC is taxed like a Sole Proprietorship. A Multi-Member LLC is taxed like a Partnership. Alternatively, you can opt for your LLC to be taxed as a C-Corporation or S-Corporation.
Additionally, there are state and local income taxes, as well as sales tax. Discover more on Minnesota LLC Taxes.
Helpful Resources
How to Start an LLC in Minnesota FAQs
Can I start an LLC online in Minnesota?
Absolutely, you can file your LLC online. The filing fee for the Articles of Organization is $155. When you file online, your LLC gets approved right away.
What are the benefits of an LLC?
One of the primary advantages of an LLC is the protection of personal assets. This means that if your business faces a lawsuit, your personal assets—like your home, vehicles, and bank accounts—are safeguarded. This protection extends to all LLC members, whether it’s a Single-Member LLC or a Multi-Member LLC. All members are shielded from business debts and liabilities. This protection isn’t available if you operate as a Sole Proprietorship or Partnership. In such informal business structures, owners are not protected in lawsuits. Therefore, Limited Liability Companies (LLCs) are a more popular business structure.
Another advantage is the LLC pass-through taxation. This implies the LLC itself doesn’t pay federal income taxes. Instead, profits “pass through” to the LLC Members, who then pay taxes via their personal tax returns. State income taxes are similarly structured, as the state respects the federal tax treatment of your LLC. For additional details, see How are LLCs taxed.
Is Minnesota a good state to start an LLC?
Whether Minnesota is an ideal state for starting an LLC depends on your location and business activities. If you reside or conduct business in Minnesota, it’s advisable to start your LLC there. While various websites highlight tax rates and benefits of certain states, these are irrelevant if it’s not where you live and do business. For instance, forming an LLC in Wyoming while living and operating in Minnesota requires you to register your Wyoming LLC in Minnesota, incurring extra fees. You’ll still pay Minnesota taxes, resulting in additional costs and complications without benefits.
In conclusion, if you live and operate in Minnesota, it is a suitable state to start a business. If not, it’s not recommended to start a business in Minnesota. An exception exists for real estate: if buying property outside Minnesota, form your LLC in the state where the property is. For more details, see Best State to Form an LLC.
About Us
We specialize in guiding individuals through the process of forming LLCs across all states, while also offering a range of comprehensive business services tailored to entrepreneurs.
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- support@uniprime.online
- +1 (646) 347-3833
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