Minnesota LLC Costs 2023: How Much Will it Cost to Start an LLC in Minnesota?
Get Professional Help When Forming an MN LLC (from $0 + state fees)
How much will it cost me to start an LLC in Minnesota? This is the question you may be asking yourself, and what paperwork will you need to file. Starting a business can seem like a daunting task, but luckily the process for forming an LLC in Minnesota is relatively straightforward and not that expensive.
We’ve gathered all the information here so that you have everything at your fingertips if you decide to form an LLC yourself. In this blog post we cover all the details that every owner needs to know: from understanding and calculating startup costs to knowing Small Business Administration resources available in Minnesota, we’ll take each step one by one so that when it comes time for your LLC registration there won’t be any surprises!
If you want to skip the hassle of starting a “State” LLC yourself, consider using professional help for the best price in the market:
- Northwest Registered Agent ($39+state fees) (best support)
- ZenBusiness ($0+state fees) (best price)
- Get Professional Help When Forming an MN LLC (from $0 + state fees)
- The Main Cost of Minnesota LLC
- Main Pros & Cost-Efficiency of Incorporating a Minnesota LLC
- Costs Change Often. Where Can I Find the Most Up-to-date Cost & Tax Info?
- Quick Overview of MN LLC Fees & Taxes
- Minnesota LLC Articles of Organization Filing Fee ($155)
- Minnesota Business Name Cost ($0)
- DBA Cost in Minnesota? ($30)
- Minnesota Registered Agent Fee ($0 or $125/year)
- LLC Operating Agreement Fee ($0)
- LLC EIN Number Fee ($0)
- Minnesota Annual Renewal Fee ($0/year)
- Minnesota Business License and Permit Fees (varies)
- LLC Taxes (varies)
- Hiring an Accountant
- Get Professional Help in Forming an LLC in Minnesota
- FAQs
- Conclusion
| Who forms the LLC? | Total fees |
| You form the LLC in Minnesota yourself | $185 = ($155+ $30 DBA) |
| You form the LLC in Minnesota (When hiring a Registered Agent) | $310 = ($155+ $30 DBA+$ 125 Agent) |
| by using ZenBusiness | $0 + state fees |
| by using Northwest Registered Agent | $39 + state fees |
| see our other top-rated LLC service providers | varies |
The Main Cost of Minnesota LLC
Registering an LLC in Minnesota only takes a one-time fee of $155. This is paid directly to the MN Secretary of State for your Articles of Organization and, once accepted, will officially form your business entity.
Main Pros & Cost-Efficiency of Incorporating a Minnesota LLC
Minnesota LLCs can be an incredibly valuable asset for business owners in the state. A Minnesota LLC, or Minnesota Limited Liability Company, is relatively affordable depending on the services you need; Minnesota does allow individuals to own their own registered agent for an LLC, which can greatly reduce the cost of registering and managing a Minnesota foreign LLC.
Furthermore, Minnesota allows various features that make LLCs attractive due to their flexibility when it comes to taxation and financial structure. Additionally, they provide limited personal liability protection as well. Taking all factors into consideration, Minnesota offers several cost-effective options when it comes to creating and maintaining an LLC in the state.
If you want to know how to start a Minnesota LLC yourself — read our guide right here.
Costs Change Often. Where Can I Find the Most Up-to-date Cost & Tax Info?
If you’re considering starting a Minnesota LLC, one of the first and most important questions to be answered is “How much will it cost?” Fortunately, the Business Services division of the Minnesota Secretary of State can provide guidance on this matter. They keep up to date information on all fees associated with filing for a LLC in Minnesota and are only a phone call or website away. When it comes to taking care of business, you won’t find better help than them!
Quick Overview of MN LLC Fees & Taxes
| Online Name Reservation Fee | $0 |
| Organization Articles Fee | Online fee : $155 or Mail fee : $135 |
| Annual LLC Fee | No fee |
| Sales Tax | 6.875% |
Minnesota LLC Articles of Organization Filing Fee ($155)
When beginning an LLC in Minnesota, there is one certain fee that must be paid – the $155 state filing fee for submitting your very own Minnesota Articles of Organization.
After filing your Articles of Organization with the Minnesota Secretary of State, you officially gain approval to create your LLC.
By paying a one-time fee of $155, you can get your Minnesota LLC up and running without having to pay any expensive monthly or annual fees and become LLC owners.
Minnesota Business Name Cost ($0)
Creating a name for your Minnesota LLC is absolutely free of charge! When you receive approval from the state on your Articles of Organization filing, you will also be presented with an approved Minnesota LLC Name at no additional cost.
Despite what you may have read on the internet, Name Reservations are not mandatory in a majority of states for LLC formation. In other words, there’s no need to reserve a name before creating an LLC!
DBA Cost in Minnesota? ($30)
When registering a DBA in Minnesota, you can file your paperwork via post for an affordable fee of $30 or choose the online filing option at just $50.
Please be aware that Minnesota mandates the publicizing of any new DBA in a legally-binding newspaper, with charges differing case by case.
Minnesota Registered Agent Fee ($0 or $125/year)
When forming your LLC in Minnesota, there is no charge to list a Registered Agent on your Articles of Organization. This part of the filing process is mandated by law, so be sure not to overlook it!
If you’re establishing an LLC in Minnesota, a Registered Agent is essential to ensure your paperwork and all state notices are properly received. Your Registered Agent must possess a verifiable street address within the state and be available during both weekdays and weekends.
There are no extra costs for you or someone you know to serve as the Registered Agent of your LLC.
Hiring a Registered Agent service is a good idea if:
We recommend our tested and best-rated provider — Northwest Registered Agent.
LLC Operating Agreement Fee ($0)
A Minnesota LLC Operating Agreement is a binding contract between each of the members, providing details on ownership structure, management responsibilities, and how profits are shared. This document ensures that all involved parties have an understanding of their rights as well as any relevant obligations in order to ensure clear communication throughout business operations.
To ensure the successful operation of a Single-Member or Multi-Member LLC, it is essential to create an Operating Agreement and store it with their business records. It is also important to provide each Member with a copy for reference.
Obtaining an LLC Operating Agreement doesn’t have to be expensive – many websites offer them at a fraction of the price, ranging from just $50 to $200.
You can certainly create one yourself or use our template below.
LLC EIN Number Fee ($0)
The Internal Revenue Service (IRS) issues Employer Identification Numbers, also known as an EIN Number or a Federal Employer Identification Number (FEIN), to businesses for tax identification purposes.
Knowing your Employer Identification Number (EIN) is essential – you’ll need it to file taxes, open a LLC bank account and even hire new employees.
Despite some websites charging a fee in exchange for an EIN number from your LLC, you can actually receive it free of cost.
Applying for an EIN, or Employer Identification Number, from the Internal Revenue Service (IRS) is fast and free. Just a few minutes of your time are all that’s needed to complete the easy online filing process!
Minnesota Annual Renewal Fee ($0/year)
Staying compliant in Minnesota means ensuring your LLC’s information is constantly current, which can be done through filing an Annual Renewal.
Submitting the Minnesota LLC Annual Renewal to the Secretary of State is an effortless process, requiring only that you verify all provided information is correct. Doing this ensures your business remains in good standing and complies with state law so it can continue functioning efficiently.
This annual filing is free of charge and should be completed for the duration of your LLC’s existence. There are no fees associated with it.
Minnesota Business License and Permit Fees (varies)
Depending on the industry and location of your LLC in Minnesota, obtaining Business Licenses or Permits may be necessary. For instance, you might require to acquire a City Business Permit for operating in that area.
The fees associated with other business licenses and permits may differ based on location or the type of industry involved, yet they are commonly quite low. Some states will provide these types of licenses while municipalities such as cities, towns, and counties can opt to issue them too.
LLC Taxes (varies)
The cost of taxes for Minnesota LLCs can differ significantly, as there are numerous types to consider. Here is a list of some possible taxes to give you a basic idea:
- Top Individual Income Tax Rate — 9.85%
- State and Local Tax Burden — 12.1%
- Top Corporate Income Tax Rate — 9.80%
- Minnesota State Sales Tax Rate — 6.875%
- Property tax (if LLC owns property) — 1.10%
When it comes to Minnesota LLC taxes, every business is unique and the specific amount owed depends on your industry type and how active you are in conducting business. To get an accurate estimate of what you owe, we must consider your individual circumstances. The way that you pay these taxes also varies based upon your profits.
We suggest checking Minnesota’s Revenue Department for all the most up-to-date taxes for all circumstances.
Hiring an Accountant
To accurately compute how much your small business will owe in taxes, it is best to engage the services of a qualified Minnesota accountant. Professional fees may range from $300 per year for basic tax returns up to $900 or more for complex filings. Utilizing an experienced accountant can help ensure that you fulfill all legal requirements while reducing potential financial risks associated with incorrect filing procedures.
Get Professional Help in Forming an LLC in Minnesota
It can be difficult and time-consuming to form a Minnesota all by yourself.
That’s why we decided to give you a few of the best options for professional services that can help you start an LLC in no time & with 0 effort!
#1 – Create an LLC in Minnesota Using Northwest Registered Agent
Northwest has vast experience in creating LLCs and Corporations. They by far have the best support and client satisfaction rate. We’ve used and tested them ourselves and can guarantee that they’ll do an exceptional job for you.
You can read our full & extensive Northwest review here.
$39+State Fees
Rating: 4.9/5
Review count: 4850+
Form an LLC today with Nortwest. They have 98% customer satisfaction rating and over 4150+ verified reviews. They will include 1 year of free registered agent service!
#2 – ZenBusiness can help you form an LLC in Minnesota
ZenBusiness is one of our top-rated LLC services as well. They have a super value-to-price ratio. And it’s perfect for those who are looking for the cheapest option to form their LLCs. When we tested their service — they’ve done a great job, so we can honestly recommend them.
To know more about them — read our full ZenBusiness review here.
$0 + State Fees
Rating: 4.8/5
Review count: 4830+
Form an LLC today with ZenBusiness for only $0 + State fees. They Have 98% customer satisfaction rating and over 4830+ verified reviews.
And to get an idea of how to start an LLC in any state – read our guide here.
FAQs
Can I file an LLC in Minnesota by myself?
Minnesota residents have the ability to file their LLCs independently, however, it is usually more prudent to involve a professional. Not only will they be able to better comprehend and navigate any legal complexities, but can also expedite tedious paperwork and other documentation for you.
How long does it take to get an LLC in Minnesota?
If you submit your Minnesota LLC online or through the mail, expect processing to take 7-14 business days. If a professional service is employed and TailorBrands specifically are utilized, this timeline can be vastly reduced. We highly recommend taking advantage of TailorBrands’ swift turnaround time!
How to renew my LLC in Minnesota?
Every twelve months, all LLCs must submit a free Annual Report to the Minnesota Secretary of State and subsequently renew their status as an LLC. It is absolutely crucial to complete this process yearly in order for your business entity to remain active.
What is tax structure for an LLC in Minnesota?
Generally, the LLC is considered to be a default tax structure. When you obtain your EIN number, you will have the chance to select from various other taxation structures as well. Some LLCs may elect S Corp status in order to reduce their federal taxes; more information on this topic can be found by reading up on Minnesota’s tax classification of limited liability companies.
How much does it cost to open an LLC in Minnesota?
To jumpstart your Minnesota LLC, a one-time filing fee of $155 is the only requirement. This cost covers the registration and paperwork for your Articles of Organization.
Should I hire an LLC formation service?
You don’t need to employ an expensive professional service company in order to form your Minnesota business entity. It’s quite possible for a business owner to complete the LLC formation process all on their own, if they choose. Plus, you can finish any online filings necessary without outside assistance!
Do I need to hire an attorney to form an LLC?
There’s no need to hire a lawyer if you want to form an LLC in Minnesota. You’re free to do it on your own, but some people may prefer having legal counsel if their business involves complex ownership or management structures, has investors, or requires industry-specific paperwork. A standard fee for forming an LLC can range from $800 and up to $2,500 depending on the services required.
How do I start an LLC in Minnesota?
Here are the steps to starting an LLC in Minnesota:
- Select a suitable LLC business name and ensure its availability!
- Make an informed decision and select your Minnesota Registered Agent today!
- Complete the filing of Minnesota Articles of Organization to initiate your business.
- Create an LLC Operating Agreement, then finalize and sign it.
- Obtain a Federal Tax Identification Number (EIN) from the Internal Revenue Service and start taking advantage of its various tax benefits.
- After that you have to Open an LLC bank account
- Find out if you require a business or sales tax license in Minnesota to stay compliant and successful.
What’s the cheapest way to start an LLC?
Starting an LLC in Minnesota can be a relatively cheap process. Limited Liability companies pay their taxes and fees to the state for registration, but there are also other costs associated with such a company. To keep costs down, those interested in forming an LLC should consider filing as a foreign Limited Liability Company. This means that although the LLC is based in another jurisdiction, it is registered to do business in the state of Minnesota. This allows owners to avoid high initial registration fees associated with starting new businesses – instead only having to maintain fees related to conducting business within the state limits. Ultimately, filing as a foreign Limited Liability Company can be one of the cheapest and most efficient ways of registering an LLC in Minnesota.
How long does it take to get an LLC in Minnesota?
If you’re wanting to get an LLC in Minnesota, the time it takes depends upon how you submit your Articles of Organization. To receive approval instantly, file online; however if submitting by mail is more your style then expect 4-7 business days before receiving a response (in addition to mailing time).
How much does a Minnesota business bank account cost?
The monthly maintenance fees charged by banks might range from $10 to $20, yet you can bypass these charges if you meet certain conditions. For instance, if your direct deposits reach a specified amount or you maintain a minimum balance, the bank could waive the fee. Additionally, it is possible to find financial institutions that do not impose any kind of tax at all!
Before deciding on opening an LLC business account with any given institution we suggest calling them prior and inquiring about potential ways of avoiding those pesky upkeep expenses.
How much is a Foreign LLC in Minnesota?
If you form an LLC in another state, it is known as a Foreign LLC. In order to do business within the State of Minnesota, this entity must first register (otherwise called “Foreign Qualify”) with the appropriate authorities. The cost for filing by mail totals $185; online or expedited services will total $205. If your company is located within Minnesota itself, it would qualify as a Domestic LLC instead!
Is Minnesota a good state for an LLC?
For entrepreneurs seeking to establish a business, Minnesota stands out as an ideal place for these endeavors. Not only does the state not require any payment for a business license, but the approval times are swifter quick than most other states.
In addition, representatives from the Secretary of State office regarding all your questions and concerns in regards to establishing your company there. Ultimately though, when choosing where you will start off any enterprise, the two essential criteria that always must be taken into consideration is one’s region of residency and location of intended operations .
If you’re a Minnesota resident or doing business in the state, then it makes sense to form your LLC there. Although other sites talk about tax rates and advantages of certain states, none of that applies if these places aren’t where you live or do business. Just because some places have lower LLC fees doesn’t mean they are ideal for setting up your company either!
Conclusion
Whether you’re ready to start your business now or are just researching information, the cost of an LLC in Minnesota is an important factor to pay attention to. The process of setting up an LLC takes time, paperwork, and filing fees in order to be legally registered by Minnesota State.
Knowing what these costs are could help save a considerable amount of time and money when it comes time to actually get started. Ultimately, the cost of a Minnesota LLC in 2023 can depend on numerous factors that may make the price vary from case to case but potential entrepreneurs should keep this information in mind as they plan for their business venture.
To sum up, starting a Massachusetts LLC shouldn’t be as expensive as it seems.
The total cost shouldn’t exceed:
- $0 + state fees if you’re forming a basic LLC with all the basic options with ZenBusiness (only via our link).
- $39 + state fees if you’re forming an ‘all-inclusive’ LLC with Northwest (only via our link).
- ~$185-310+ if you’re forming an LLC yourself.
Having a clear understanding of the startup costs associated with a new LLC lay the foundation necessary for success, so it pays to do research thorough research before beginning this exciting journey.