Form an LLC in Minnesota with Inc Authority for Free

Before you start the LLC registration process, you must select the name you would like your LLC in Minnesota to be identified with. Choose a name that is easy to spell and memorable enough for your potential customers to remember. 

According to Minnesota state requirements, your business name must contain the phrase “Limited Liability Company” or any of its abbreviations, including “L.L.C” or “LLC. It should not contain the word “Corporation” or any of its variations.

The name of your LLC must be unique and distinguishable from other existing businesses in the state. So, once you choose a business name, it is a good idea to reserve the name if you’re not ready to start the registration process yet. 

A business name reservation costs $55 if you file online and $35 by mail. If the name you choose bears some resemblance to an existing business name, you can apply for consent to use the name for the same fee as mentioned above. 

An LLC in Minnesota must appoint a registered agent who will serve as a legal point of contact for the business. Your LLC’s registered agent can either be an individual or a business entity, with a physical address in the state of Minnesota. 

Your professional limited liability company in Minnesota cannot act as its own registered agent. However, a member of your LLC can take up this role. Alternatively, you can outsource this service to registered agent service providers.

Your LLC in Minnesota can operate as a single-member LLC or a multi-member LLC. A single-member LLC has just one owner, who maintains exclusive management rights of the entire company, while a multi-member LLC has several.

You can also run your LLC in Minnesota as a manager-managed company, where you hire a manager to oversee day-to-day affairs or as a member-managed company where the members manage their business themselves. 

An LLC operating agreement is a legal document that specifies the terms of operation for an LLC, such as the management structure, voting rights, profit shares, etc. It essentially serves as the core founding document of an LLC. 

While LLCs in Minnesota are not mandated to have an operating agreement, it is a great idea to draft one because it will help you settle internal disputes if they ever arise. You can draft the agreement yourself or hire a professional to do it. 

According to Minnesota law, you must prepare and submit Articles of Organization before your LLC becomes a legally recognized business entity in the state. These are documents that contain important information about your organization. 

A domestic LLC in Minnesota can file its Articles of Organization online for $155 or by mail for $135. A foreign Minnesota LLC must file for a Certificate of Authority to conduct business in Minnesota for a fee of $205 online and $185 by mail.

Next, you must get an Employer Identification Number (EIN) for tax reporting and banking purposes. An EIN is a unique number assigned to businesses by the Internal Revenue Service (IRS). It costs nothing to apply for one. 

If your LLC in Minnesota is a single-member organization, you can use your social security number in place of an EIN. However, if you have more than one employee, you’ll need an EIN for employment taxes and other related purposes.

Your LLC’s finances should be separated from your personal finances. That’s why you must open a business banking account for your company. You can open more than one bank account for your LLC, but it’s advisable to start with one.

To open a bank account, you must have an EIN. You’ll also need documents that certify the existence of your LLC. Some banks may request to see your operating agreement, but the specific requirements vary from bank to bank. 

A Minnesota Limited Liability Company is not required to acquire general business licenses before they can operate in the state. However, you may need to get a license specific to the county you operate in or the type of services you offer. 

For example, if your company offers services related to buildings and construction, you’ll need to acquire zoning and building permits. To find out if you need to get a business license for your LLC, check the Minnesota E-Licensing portal.

An LLC in Minnesota enjoys pass-through taxation and also has the flexibility to decide the tax structure it wants to adopt. It can choose to be taxed as an S-corp or a C-corporation, depending on which is more profitable for the business.

If you opt for pass-through taxation, you’ll pay the Minnesota state income tax, which ranges from 5.35% to 9.85%. The state also has a corporation franchise tax rate of 9.8%, general sales tax of 6.875%, and unemployment tax rates. 

If you would like to operate your business under a different name than what you have registered, you must file for a DBA(Doing Business As) to get an assumed name. This can be a shorter, catchier name that is easier to remember.

Your DBA name does not need to follow the LLC naming conventions and does not require you to use the word “LLC”. However, it should reflect the services you offer. The cost for filing for a DBA in Minnesota is $50 online and $30 by mail.

It is not compulsory for you to have a website for your LLC in Minnesota. However, it is advisable to get one. In this digital age, creating a website for your business is a great way to establish the online presence you need to expand your reach. 

When you’re creating a website for your business, ensure that you use your company’s logos, colors, and assets to design the website. This will help you maintain a consistent and professional image for your brand.

All LLCs in Minnesota are mandated to file a Beneficial Ownership Information (BOI) report with the Financial Crimes Enforcement Network (FinCEN). This report discloses data on the legal and beneficial owners of your company.

If you establish your LLC after January 2024, the BOI report is due 90 days after creation. However, from January 2025, it is due 30 days after you register your company. Non-compliance will result in severe civil and criminal penalties.

Once you have successfully established a legally recognized LLC in Minnesota, you must meet the ongoing compliance requirements. You also need to file an annual renewal form to remain in good standing with the state of Minnesota. 

LLCs in Minnesota must file an annual renewal by December 31 every year with the Minnesota Secretary of State. It is free to submit this annual renewal form. However, if you default, you must pay a reinstatement fee of $25 by mail or $45 online. 

Here are the features you’ll get with the free business formation plan:

• LLCs name search tool: Inc Authority makes it easy to check if your desired business name is available. All you have to do is use the business name search tool on its website, and you’ll get your results within seconds.  

• Complimentary resident agent services: All LLCs in Minnesota must have registered agents for their company. With Inc Authority, you don’t have to pay for this service; you get one year of registered agent services for free.

• Online document storage: Inc Authority gives you access to a secure online document storage system for all the paperwork relating to your LLC. You can easily access these documents via your Inc Authority account.

• Tax planning consultation: Inc Authority gives you free access to tax planning experts. While LLCs enjoy pass-through taxation, you need to speak to tax specialists to ensure it’s the right choice for your business structure.

• LLC registration: The core service Inc Authority provides is LLC formation. Its team of experts will walk you through each step involved in forming an LLC, including filing your Articles of Organization and other documents. 

• S-corporation formation: If you want your LLC to be taxed as an S-Corporation, you’ll need to fill out and submit an S-election form. Inc Authority can help you fill and submit this form even on the free plan.

• Business funding analysis: Inc Authority’s services don’t end at LLC formation. Their team of professionals will also work closely with you to access your business funding requirements and offer trusted funding options.

You can easily start an LLC in Minnesota with Inc Authority’s free plan. However, the paid plans offer more customized services. Check them out.

Price: Free

Here are the additional services you’ll get with the Starter plan:

• LLC operating agreement: Having an LLC operating agreement will streamline your LLC’s business operations. With the Starter plan, Inc Authority will help you create a detailed operating agreement, outlining the duties and responsibilities of all members of your organization.

• Tax ID application: You’ll need an EIN to open a business bank account to file payroll taxes for your employees and general tax identification purposes. Inc Authority will guide you through the application process to ensure that you receive an EIN as quickly as possible. 

• Business documents and forms: There are different types of legal documents and contracts associated with starting an LLC in Minnesota. Inc Authority will make it easy to create these corporate forms and legal documents by providing templates that can easily be customized.

• Compliance notifications: After you have successfully established your LLC in Minnesota, you must keep up with the ongoing compliance requirements or risk putting your business in bad standing with the state. Inc Authority will help you remain compliant by sending regular notifications. 

• Comprehensive tax consultation: Every business entity has unique financial needs that require detailed tax planning. With the Starter Plan, you’ll get access to expert tax advisors who will assess your LLC’s tax obligations and help you find a way to maximize your tax savings. 

• Website design services: One of the best ways to grow your business is by creating a website where potential customers can learn more about your business. Inc Authority will provide you with a custom web domain name for your website and five business email addresses. 

Price: Custom

Here are the additional services you’ll get over the Starter plan:

• Customer success advisor: The Fasttrack plan is the highest tier plan that it provides. With this plan, you get highly personalized services from a customer success advisor who will be your first point of contact and will attend to any questions or worries you may have during the LLC formation process.

• Private banking expert: Opening a business checking account will not only keep your personal and business finances separate but also help you properly manage your business finances and streamline finance records. The Fasttrack plan provides you with a private banking specialist for this. 

• Personalized business advisory: Inc Authority’s services extend beyond LLC formation. It also offers business advisory services to help you kickstart your business. With the Fasttrack plan, you’ll get access to business experts who will work closely with you to ensure you hit all your business targets. 

• Expedited preparation & filing: With the other plans, Inc Authority’s experts will guide you through the application and filing processes, but you may have to wait a couple of days. With the Fasttrack plan, you’ll be recognized as a priority client and will get access to expedited same-day filing.

The Fasttrack plan is the most expensive plan Inc Authority offers because it provides you with highly personalized services tailored to your specific business needs. It’s a great option if you’re looking for premium services at a little extra cost.