LLC Cost in Minnesota – How Much to Pay for an LLC

minnesota_state_seal

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.

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.

LLC Service

Our Rating & Pricing

Top Features

Learn More

#1 TOP PICK

Free LLC Setup

  • 1 year free agent service

  • Digital storage

  • Different types of plans

FAST SERVICE

$49 + State Fees

  • Lifetime business support

  • 100% accuracy guarantee

  • Expert customer support

$299 + State Fees

  • Fast service

  • Resource center

  • Flat Rate for all services

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:

StateFiling FeeAnnual Fee/Biennial FeeSales Tax 
Minnesota LLC $135 (mail)$155 (online)$06.875%
Wisconsin LLC $130 (online)$170 (mail)$255.00%
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.

Other Costs

How Much Does It Cost to Maintain an LLC in Minnesota

In Minnesota, an LLC must file articles of organization. These documents must be submitted to the secretary of state’s office, and they are not free. The fee to file an LLC in Minnesota is $135, which you can pay in person or online. Afterward, the Secretary of State will record the document in the office of the secretary of state and return the original to you. In addition, a free software called Records Manager provides a secure and efficient way to manage sensitive company records. It also includes customizable meeting notification and member tracking.

In addition to the costs listed above, there are other costs associated with maintaining an LLC in Minnesota. Filing an annual report and renewal is necessary to keep an LLC active. You can file an annual report online or through the Minnesota Secretary of State’s office. However, if you’re looking for a cheaper way to form an LLC, file online. If you want to save time, you can file your LLC documents online, which usually takes four to seven business days.

To avoid being shut down, you must renew your LLC in Minnesota every year. You can do this online or in person, depending on your location and business activities. In addition to the filing fee, your Minnesota LLC will also need a registered agent. While many of these services charge a fee for this service, they’re usually worth it because you’ll never have to pay that fee again. In Minnesota, you must pay for an annual report to the state and a $55 amendment fee to keep your LLC active.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

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.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

Leave a Comment