How to Start an LLC in Minnesota

Last updated on 04 Apr 2025

How to Form an LLC in Minnesota | Complete Guide

A Step-by-Step Guide

How to Form an LLC in Minnesota

Forming an LLC in Minnesota is a wonderful way to safeguard your personal assets without having to go through the hassles of a traditional business setup. If you are just starting out in business formation or need guidance, this step-by-step guide will guide you through the process of forming your LLC in Minnesota.

Key Benefits

Personal Asset Protection

An LLC or 'limited liability company' is an American business form that gives the owners some legal protection by not holding them personally responsible for the legal obligations or debts of the company.

Tax Flexibility

LLCs offer pass-through taxation by default, meaning business income passes through to your personal tax return, avoiding double taxation while providing options for how you're taxed.

Management Freedom

Minnesota LLCs provide flexibility in management structure, allowing you to choose between member-managed or manager-managed operations to suit your business needs.

Formation Process

Pick a Creative Name for Your Minnesota LLC

Picking the perfect name for your LLC is of prime importance. Your name should be unique and different from other business names in Minnesota.

Required Words: The name should contain "Limited Liability Company" or an acronym such as "LLC," "L.L.C.," or "Ltd."
Prohibited Words: The name should not use words such as "Agency," "Board," "Bureau," "Department," "Municipal," or any other word that may be construed as a government agency.
Name Availability: Ensure your name is not taken by verifying through the Minnesota Business Entity Search tool to see if someone else is already using it.
Domain Name: It is also advisable to check the availability of domain names if you anticipate that you might need a website in the future.

Choose a Minnesota Registered Agent

All Minnesota LLCs are required to have a Registered Agent. This is someone or an entity that receives official legal notices, tax notices, and other formal correspondence on behalf of your LLC.

Agent Requirements

Your choices are a person (including you) with a Minnesota street address, or a professional Registered Agent service. Using a professional service will assist you in ensuring that all legal documents receive treatment in a timely fashion. They also make certain that you are compliant and avoid fines.

Professional Services

We highly recommend that you hire a professional Registered Agent service. Utilizing a professional service is convenient and guarantees compliance with state regulations. Many business owners prefer this option for the privacy and reliability it offers.

Recommended Registered Agent Services

ZenBusiness

ZenBusiness is a reliable service that assists you in creating your LLC in an easy process. Their Registered Agent service is $199 per year and keeps your business compliant. They also offer a virtual dashboard in which you can easily view necessary documents.

Simple LLC creation
Compliance service without worries
Great customer reviews

Cons: Does not provide nonprofit services.

Northwest Registered Agent

Known for excellent customer service, Northwest Registered Agent offers premium services to keep your LLC in good standing. Their registered agent fee is $125 annually, and they provide secure online access to all of your LLC's documents.

Strong privacy and data security features
Experienced service in all 50 states
A+ rating from the Better Business Bureau

Cons: Slightly higher initial formation cost.

File Your LLC Formation Documents

In order to formally create your LLC in Minnesota, you will need to file your Articles of Organization with the Minnesota Secretary of State. This can be done online, by mail, or in person.

Filing Fee

Online Filing Fee: $155
Mail Filing Fee: $135

Processing Times

Filing Online: The quickest option with processing times of 3-5 business days.
Filing by Mail: Processing time of around 7-10 business days.
Filing In-Person: Instant processing if filing in person.

Filing Options

Online Filing: The quickest option with processing times of 3-5 business days.
Mail Filing: You can send your Articles of Organization to:
Minnesota Secretary of State – Business Services
First National Bank Building
332 Minnesota Street, Suite N201
Saint Paul, MN 55101
In-Person Filing: Instant processing if filing in person.

After you file your Articles of Organization, you'll get a confirmation, and your LLC will be formed.

After Forming Your LLC: What's Next?

After your LLC is registered, there are a few more things to assist you in running your business efficiently and enjoying legal protections:

Create an Operating Agreement: Although not necessary in Minnesota, having an Operating Agreement is advisable. This agreement explains how your LLC will function, how decisions are made, and other important business information.
Keep Personal and Business Money Separate: Create a separate business bank account. Maintaining separate business and personal accounts will safeguard your personal assets in the event of legal problems.
Get Business Insurance: Even small businesses will find insurance beneficial to cover them against possible lawsuits, damage to property, or other hazards. Workers' compensation insurance is also a requirement if you have staff.
Employ an Accountant: A business accountant can assist in making sure that you are compliant with tax requirements, avoid costly mistakes, and save money by using tax tactics.

After Formation

Once your LLC is established, take these important steps to maintain good standing and protect your business:

Create an Operating Agreement

Although not necessary in Minnesota, having an Operating Agreement is advisable. This agreement explains how your LLC will function, how decisions are made, and other important business information. It will help define the structure and operating procedures of your LLC.

Keep Personal and Business Money Separate

Create a separate business bank account. Maintaining separate business and personal accounts will safeguard your personal assets in the event of legal problems. This separation is crucial for maintaining the liability protection that your LLC provides.

Get Business Insurance

Even small businesses will find insurance beneficial to cover them against possible lawsuits, damage to property, or other hazards. Workers' compensation insurance is also a requirement if you have staff. This provides an additional layer of protection beyond the LLC structure itself.

Employ an Accountant

A business accountant can assist in making sure that you are compliant with tax requirements, avoid costly mistakes, and save money by using tax tactics. Having one also takes the burden of bookkeeping and payroll off your shoulders so you can concentrate on growing your business.

FAQs

How much is it to create an LLC in Minnesota?

The cost to create an LLC in Minnesota is $135 if filed by mail. It costs $155 if you use expedited processing in person or through the website.

Do I require a Trade Name (DBA) for my LLC?

Most LLCs in Minnesota do not require a "Doing Business As" (DBA) name. If you wish to do business under a name other than your LLC's legal name, you'll have to file a DBA with the Secretary of State.

How long does it take to process the Articles of Organization?

Online filings take approximately 3-5 business days. Mail filings are approximately 7-10 business days. Filings in person are processed the same day while you wait.

Can I act as my own Registered Agent in Minnesota?

Yes, you can be your own Registered Agent in Minnesota provided that you have a physical address in the state and are present during business hours to accept legal documents.

Is an Operating Agreement required in Minnesota?

No, Minnesota does not require an Operating Agreement, but it's highly advisable to have one to define the structure and operating procedures of your LLC.

Do I need to file an annual report for my LLC?

Yes, Minnesota requires LLCs to file an annual renewal report, which costs $0 if done online. This report is due every year by December 31st, and failure to file it can result in your LLC being administratively dissolved.

Can I get an EIN for my Minnesota LLC?

Yes, an Employer Identification Number (EIN) is necessary if your LLC has employees or you are going to have a business bank account. You can get an EIN from the IRS for free.

Ready to Start Your Minnesota LLC?

Take the first step toward establishing your business with the protection and benefits of an LLC structure. By taking these steps and keeping tabs on all filings and fees required, you can keep your LLC in Minnesota in good standing for the long haul.

Get Started Today