Hassle-Free LLC in Minnesota Formation for Entrepreneurs

Before starting the LLC registration process, you must select the name you want 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 in Minnesota 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 LLC 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 in Minnesota 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 in Minnesota, 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 in Minnesota 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 LLC in Minnesota 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 apply for 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.

It is important to keep personal and business finances separate. 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 business bank account, you must have an EIN. You’ll also need documents that certify the existence of your LLC in Minnesota. Some banks may request to see your operating agreement, but the specific requirements vary from bank to bank. 

An LLC in Minnesota 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 in Minnesota, 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 a sole proprietorship, partnership, C-corp, or an S-corp, 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 LLC in Minnesota 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.

You don’t need 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 your online presence and expand your reach. 

When you’re creating a website for your LLC in Minnesota, 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 that reflects your LLC in Minnesota.

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 LLC in Minnesota.

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 registering 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. 

Tailor Brands’ Lite Plan is an excellent choice for business owners seeking a simple and cost-free way to form an LLC in Minnesota.

Here’s what’s included in the Lite Plan:

• LLC formation: Tailor Brands manages the legal paperwork and helps you file your Articles of Organization to ensure your application gets approved.
• Business coaching program: Tailor Brands offers business coaching and foundational resources for business owners establishing an LLC in Minnesota.

While this plan doesn’t include additional features like compliance support, it’s ideal for business owners who only need the basics to get started.

Price: Free

The Essential Plan goes beyond basic LLC formation, making it a great choice for entrepreneurs seeking faster processing and additional features to support compliance and business operations.

In addition to standard LLC in Minnesota formation, here’s what’s included in this plan:

• Expedited processing: Tailor Brands will prioritize and process your application, ensuring your LLC in Minnesota is formed within 2 business days.
• Annual compliance support: Tailor Brands will manage your mandatory reports and notify you of important deadlines, ensuring your LLC in Minnesota remains compliant throughout the year.
• Operating agreement tools: Access resources to create a legally required LLC operating agreement, a crucial step in forming an LLC in Minnesota.
• $30 Amazon gift card: Enjoy a bonus to help offset startup costs, you can use this gift card for business-related purchases and essential supplies.

This plan is ideal for business owners who need extra support and faster service when forming their LLC in Minnesota.

Price: $199/year

The Elite Plan by Tailor Brands provides the ultimate solution for business owners looking to establish their LLCs in Minnesota while building their brand.

Here’s what’s included:

• $50 Amazon gift card: Receive a higher-value gift card as part of this premium plan.

• One-year free domain: Get a complimentary registered domain for the first year of running your LLC in Minnesota website to build an online presence. 
• DIY Website builder: Use pre-designed templates to easily create a fully functional website or online store for your LLC in Minnesota.
• Online branding tools: Establish a strong brand identity with eight professional and customizable logo designs for your LLC in Minnesota.
• Digital business card:  Design and customize professional business cards with ease. Consolidate all your contact details in one shareable digital card.
• Social media post maker: Create branded social media posts to promote and boost the online presence of your LLC in Minnesota.

This plan is perfect for entrepreneurs seeking a comprehensive package of business and branding tools.

Price: $249/year

In addition to its free and paid plans, Tailor Brands provides various add-on services for a fee.

Here’s a look at some of the services available:

• Business Licenses: Tailor Brands can help identify the licenses and permits required to form your LLC in Minnesota and assist you in obtaining them.
• Employer Identification Number (EIN): An  EIN is essential for various business activities, including forming an LLC in Minnesota, and Tailor Brands can help simplify the application process for quick approval.
• Business Bank Account: Tailor Brands offers recommendations and guidance to help you open a business checking account for your LLC in Minnesota.
• Business Insurance: Tailor Brands helps you find and secure the best coverage to protect your LLC in Minnesota from unforeseen risks. 
• Tax and Accounting Services: From tax filing to accounting consultations, Tailor Brands provides comprehensive support for your LLC in Minnesota.
• Invoicing and Bookkeeping: Tailor Brands offers bookkeeping services to manage financial records, handle client invoicing, and perform related tasks.

Price: Custom