Minnesota LLC – How to Form an LLC In Minnesota? (7-Step Guide)

Before you do anything, you’ll need to decide on a name for your LLC, however, that may not be as easy as it sounds. To start with, under the law of the state, an LLC name in Minnesota must contain the words ‘Limited Liability Company’, or the abbreviation of this.

It must also be distinguishable from all of the other business entities in the state that have filed with the Minnesota Secretary of State. Once you have come up with a name that you like, and ensuring it contains the term ‘Limited Liability Company’, you can check that the name, or a similar sounding name, is not already in use by searching the Minnesota business name database. If your name is available but you are not quite ready to file it yet, you can reserve the name for up to 12 months. This can be achieved by filing a name registration with the Office of the Minnesota Secretary of State Business and Lien System. You can either chose to do this online, which comes with a $55 filing fee, in person, which also has a $55 filing fee, or by mail, which costs $50.

The next vital step is to appoint yourself with a registered agent. A registered agent is an individual, or business entity, who will accept all legal papers on behalf of the LLC. These legal papers could include important tax forms, legal documents, official government correspondence and notice of lawsuits. Basically, they are your point of contact with the state. Who can be the registered agent of the company is quite flexible, but it must be a resident of Minnesota, a Minnesota business entity or alternatively, it can be a foreign business entity that is authorized to do business in Minnesota. They must also have a physical street address in the state. You could even be your own registered agent, or you could choose to elect someone else who is in your company.

This is arguably the most important step when it comes to filing an LLC. You must file your Articles of Organization with the Minnesota Secretary of State. What is on your Articles of Organization depends on your business, but contains all the vital information about your business and registered agent.

You can either file your Articles of Organization by mail or you can file it online. Filing by mail costs a little bit less at $135 and online and in person filings are charged at $155.

Not all states require you to have an operating agreement in order to successfully file an LLC, and Minnesota is one of these. Despite the fact that is it not completely necessary, it is good practice to have one, and is very much advised. The operating agreement is the legal document that outlines the operating procedures and the ownership of the LLC.

It can be a very helpful document, especially in the long run, as it ensures that all owners of the business are completely on the same page about how the business is run. This will reduce the risk of future complications as if there is a disagreement in the future, then the members are able to just look back at the operating agreement which was agreed together.

An EIN stands for Employer Identification Number, although it is also sometimes referred to as a Federal Employer Identification Number or a Federal Tax Identification Number. The EINs are made up of nine digits and are assigned by the Internal Revenue Service.

Your EIN will be used to help identify businesses for tax purposes, much like how a Social Security Number works. An EIN is very important for an LLC as you’ll have to use it to open a business bank account, to hire any employees, and to file and manage Federal and State Taxes, so you should get it as soon as possible to make things easier for yourself in the future.

Depending on where your business is located and the type of business it is, there may be some other business requirements that you’ll have to consider. For example, the LLC may need to obtain local and state business licenses. To check if you need a business license, you can check with the clerk for city where the company’s primary place of business is. If you want to find more about state licenses, the place to look is the State of Minnesota Elicensing portal, as this will tell you all you need to know about business licenses in the state.

Once your business is all set up and running, the hard work is far from done. You will have to remember to meet the annual requirements that come with running a business in Minnesota. An annual renewal must be filed once every calendar year with the Secretary of State, as long as it is before December 31.

It is your choice if you want to file your renewal online or by mail. The cheapest option is by mail at $25, although this might take a little longer. Online or in-person filings are charged at $45.