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.
If you are wondering How Much Does It Cost to Maintain an LLC In Minnesota, then you’ve come to the right place. While it may seem like a small amount, the costs to maintain an LLC in Minnesota are not small. In fact, they can get really expensive. In order to avoid these hefty fees, it’s best to make sure you understand exactly what you’ll be paying for your business.
For example, if you’re planning on hiring employees, you will almost certainly have to pay payroll taxes. These taxes include the employer’s share of Social Security and Medicare, as well as state and federal unemployment insurance. You can either pay through a direct deposit or with an annual or quarterly tax return. Some businesses may have to pay Minnesota state taxes on alcohol, fuel, or hazardous waste generation. Depending on the nature of your business, you may be responsible for additional fees.
In order to establish an LLC, you will need to pay a filing fee of $135/$155. You can obtain a filing form online or print a copy and submit it. Depending on the size of your business, you might need to pay a fee as well, though you’ll probably be paying this fee one time only. Once your LLC is up and running, you should start thinking about paying a monthly or annual fee for registered agent services.
Another fee is for the Certificate of Good Standing. An LLC’s operating agreement is a legal document that defines the inner workings of the business. Getting an LLC’s operating agreement is similar to signing a prenuptial agreement, and it protects the interests of all parties involved. If you have any questions about whether or not your business requires an operating agreement, you should contact the Secretary of State of Minnesota.
When forming an LLC in Minnesota, you should secure a name for your new company. This can be done as early as 12 months before its official launch. The Minnesota Secretary of State offers two ways to reserve a name for your business. The online method costs $55 while filing by mail requires a $35 fee. For additional costs, you can hire a registered agent for your business. It’s important to note that the cost of maintaining an LLC in Minnesota is lower than those for other forms of business.
Using an assumed name is a common choice for business owners. It allows them to keep the LLC name, but use a different trade name. In Minnesota, the Secretary of State also requires an LLC to appoint a registered agent. It costs $100 a year to maintain an LLC in Minnesota. These fees are usually covered by the business owner’s insurance. But if you’re worried about the legal fees, you can opt for a registered agent who charges you only $50.
The next step in forming an LLC in Minnesota is to file the Articles of Organization, which are important documents to create your new company. These documents must contain the legal name of your LLC, registered agent, and email address for official notices. Filing these forms online or by mail costs $135, while filing them in person requires a fee of $155. You can also file a Certificate of Authority to Transact Business in Minnesota if you wish. The filing fee for this document is $135 for mail-order filing, while filing an LLC online costs $205.
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.