Perhaps you are hoping to form a Minnesota LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Minnesota.
On this page, you’ll learn about the following:
Minnesota LLC Cost of Filing
Here are the costs involved in forming an LLC in Minnesota.
Cost of Filing Formation Certificates
The Minnesota Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Minnesota Secretary of State.
Minnesota Domestic LLC
- Online filing costs $155
- Annual Report filing costs $0
- Name Reservation fee costs $55 (online) and $35 (mail)
- By Mail: Fill out the Application Form PDF and submit it to the following address: Minnesota Secretary of State – Business Services Retirement Systems of Minnesota Building 60 Empire Drive, Suite 100 St Paul, MN 55103, costs $135
Minnesota Foreign LLC
- Online filing costs $205
- Annual Report filing costs $0
- Name Reservation fee costs $55 (online) and $35(mail)
- By Mail: Fill out the Application Form PDF and submit it to the following address: Minnesota Secretary of State – Business Services Retirement Systems of Minnesota Building 60 Empire Drive, Suite 100 St Paul, MN 55103, costs $185
You can visit the Official Secretary of State of Minnesota website to learn more about Business Forms and Fees.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Minnesota LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Minnesota, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Minnesota Department of Revenue for regulatory boards or agencies requiring licensing.
Minnesota LLC Taxes to be Paid
Though the annual report filing in the State of Minnesota is free of cost, the LLCs in the State are subject to different State Tax filing obligations. Though the taxes vary from county to county.
Minnesota State Income Tax
This is the State Tax levied on any income you pay to yourself. The tax rate varies between 5.35% to 9.85%, depending on the total amount of taxable income.
Minnesota Sales Tax
The standard rate of sales tax applicable is at the rate of 6.875% and after the addition of local taxes, the rate can go as high as 8.375%.
Minnesota Federal Self- Employment tax
Any profit that Minnesota LLC Business members draw out from the business is liable to pay self-employment tax. The standard tax rate is 15.3%.
Employer Payroll Tax Withholding
If you hire employees in Minnesota, you must withhold payroll tax from their salaries. The standard rate of withholding is 7.65% of the taxable salary of the employees.
Cost Comparison among States
Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to Minnesota, read the table below:
|State||Filing Fee||Annual Fee/Biennial Fee||Sales Tax|
|Minnesota LLC||$135 (mail)$155 (online)||$0||6.875%|
|Wisconsin LLC||$130 (online)$170 (mail)||$25||5.00%|
|North Dakota LLC||$135||$50 (annual)||5.00%|
|Iowa LLC||$50||$45 (online) (biennial)$60 (mail) (biennial)||6.00%|
|South Dakota LLC||$150||$50 (annual)||4.50%|
The State of Minnesota’s economy has flourished in the previous decade with impressive wealth and low poverty rates. The major contributing industries are agriculture, manufacturing, and mining.
- Minnesota Name Reservation: $55 for online fillings or $50 by mail
- Doing Business As (DBA): $50 for online filling or by mail
- Certified Document Copies: $.10 per page
- Certified of Good Standing: $14
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Minnesota LLC: $55 for online fillings or $35 by mail
How Much Does It Cost to Maintain an LLC in Minnesota
To maintain an LLC in Minnesota you do not need to pay an annual fee. However, state income tax at 5.35% to 9.85%, sales tax at 6.875% and federal taxes are levied.
How much does it cost to maintain an LLC in Minnesota? The state requires that all businesses renew their licenses, whether they are registered or not, at least once a year. For an LLC in good standing, there is no annual fee. However, if you fail to file your annual report on time, the state can levy a late fee of $25 per month by mail, and $50 per year by expedited service. In Minnesota, most of the LLC’s tax liabilities will be with the IRS at the federal level.
In Minnesota, an LLC can be registered by mail, online, or in person. An LLC must appoint a registered agent, which is a person or company that will receive important documents and communicate with state officials. Listed below are some of the other costs of maintaining an LLC in Minnesota. To learn more about Minnesota’s standards, consult the MN Secretary of State’s website. This state requires a minimum of one business owner to pay a fee of $35 per business.
An LLC in Minnesota must file an annual renewal and annual report with the state. These forms must be submitted by December 31 in order to remain in good standing. To avoid ownership feuds, LLCs should sign operating agreements to define and agree upon business practices. In addition to filing annual reports, LLCs must register with the Minnesotavenue department for any relevant taxes. In some cases, it may be necessary to apply for permits from more than one government agency. Avoid operating in the shadows; dissolution of an LLC may have serious consequences.
Choosing a name for an LLC is an essential step in starting a business. Make sure to check the availability of a business name before committing to a business name. The cost of hiring a registered agent can vary from $50 to $500 a year, depending on the service you need. Additionally, business licenses and permits are usually another cost. It is important to understand how much a business license and annual fee will cost before you make a final decision.
When establishing an LLC in Minnesota, you must file an Articles of Organization (AoO) with the Minnesota Secretary of State. An operating agreement is a document that spells out the rules for running the LLC, such as who owns the company and who can manage it. It is also an excellent idea to have a comprehensive operating agreement for your LLC so that there are no issues in the future.
As a business owner, you must file Annual Renewals with the Minnesota Secretary of State each year. While filing annual reports is free, it requires time and resources. To make it easier on yourself, you can hire an annual report service to file your Annual Report for you. Likewise, LLCs that are multi-member must pay Minnesota Franchise Tax, or Minnesota Partnership Tax. While these fees are not as large as those for an S-Corp, they are essential for the continued success of your business.
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
The cost of Minnesota is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.