How Much Does an LLC Cost in Minnesota? (2024 Filing Fees)

Starting a Limited Liability Company (LLC) in Minnesota is an exciting milestone for your business!

It costs $155 to file the Articles of Organization, and the good news is there’s no annual report fee for most LLCs.

But it doesn’t stop there.

Other costs might include registered agent services, business licenses, and taxes, which can add up over time.

Ready to learn more about forming your LLC in Minnesota?

How Much Does an LLC Cost in Minnesota?

Starting an LLC in Minnesota involves several costs.

Here are the main expenses you need to consider:

• Filing the Articles of Organization: The main cost is the $155 filing fee paid to the Minnesota Secretary of State.
• Annual Report: You are required to file an annual report. It costs $0 to file online, but a late fee applies if it is not submitted on time.
• Registered Agent Services: If you hire a registered agent, expect to pay between $100 and $300 annually.
• LLC Name Reservation: If you want to reserve your LLC name before filing, it costs $55.
• Certificate of Good Standing: If needed, this certificate costs $15.
• Doing Business As (DBA): If you operate under a name different from your LLC, filing a DBA costs around $50.
• Licenses and Permits: Depending on your business type, licenses may be required. The cost varies widely based on your specific needs.
• Taxes: LLCs may be subject to state and local taxes. You should check local taxes that apply to your specific business.

LLC Costs in Minnesota (Formation Fees)

Here are the primary costs associated with forming an LLC in Minnesota:

Minnesota LLC Requirements	Cost
LLC Business Name Search	$0
Articles of Organization	$155 (online)
Operating Agreement (optional)	$0 (with Northwest)
EIN Number	$0 (free from IRS)
Annual Report	$0
LLC Name Reservation Fee (optional)	$55
Certificate of Good Standing (optional)	$15
Foreign LLC Registration (optional)	$205
Fictitious Name (DBA) (optional)	$50
Taxes	Varies by business type
State Business License Fees	Varies by industry
Registered Agent Services (optional)	$0-$125 (Northwest)
LLC Formation Services (optional)	$39
Total LLC Costs in Minnesota	$155 – $644

Total Minnesota LLC costs range from $155 to $644. If you do everything yourself and skip the optional extras, you might only spend around $155. However, if you decide to pay for additional services and requirements, your costs could go up to between $300 and $644.

The first mandatory expense is the $155 fee for filing the Articles of Organization online, which is essential for officially establishing your LLC. Notably, there is no annual report fee in Minnesota.

Now, let’s discuss the optional costs.

Additionally, conducting an LLC business name search is free, and obtaining an Employer Identification Number (EIN) is free from the IRS. An Operating Agreement is recommended but can be obtained at no cost using services like Northwest.

Reserve your LLC name, which typically costs $55. You may also want a Certificate of Good Standing, which costs $15. Registering a foreign LLC in Minnesota incurs a fee of $205. Operating under a different name (DBA) costs $50.

Regarding registered agent services, you can either act as your agent at no cost or hire a professional service, which typically ranges from $100 to $300.

Remember that taxes and state business license fees can vary based on business activities.

Minnesota LLC Business Name Search Cost ($0)

When you decide to form an LLC in Minnesota, one important step is to check if your desired business name is available. This name search is a free service offered by the Minnesota Secretary of State’s office.

You can easily perform this search online. Here’s how it works:

• Visit the Minnesota Secretary of State’s website.
• Use the business name search tool to check for the availability of your chosen name.

You will want to look for names other registered businesses have not already used. This step is crucial because your business name needs to be unique to be registered.

Choose a name that reflects your business purpose. This will help with your identity and marketing in the future.

Minnesota Articles of Organization ($155)

To start an LLC in Minnesota, you must file the Articles of Organization. This is a key document that officially creates your business. The filing fee for this document is $155.

You can file the Articles of Organization online or by mail. The fee for filing by mail is $135. However, the online process is often faster and is recommended for quicker approval.

Once you submit your Articles of Organization, the Minnesota Secretary of State will review it. The Minnesota LLC processing time depends on how you file your paperwork.

If you file by mail, the process typically takes 3-4 weeks, but if you submit your LLC paperwork online, you’ll get instant approval.

After your Articles are approved, your LLC is officially established. No annual fees are required to keep your LLC active in Minnesota, making it a cost-effective option for business owners.

LLC Operating Agreement Cost in Minnesota ($0 with Northwest)

You may want to create an Operating Agreement when forming an LLC in Minnesota. This document outlines how your LLC will be run. It includes details about ownership, management, and sharing profits.

The good news is that using Northwest Registered Agent, you can get this Operating Agreement for $0. This is a significant benefit if you want to save money when setting up your LLC.

Although creating an Operating Agreement is not legally required in Minnesota, it is highly recommended. It helps prevent misunderstandings among members and provides a clear framework for operations.

You can write your Operating Agreement if you decide not to use a service. However, make sure to cover key topics like:

• Owner information: Names and addresses of members.
• Management structure: How the LLC will be managed.
• Voting rights: Each member’s voting power.
• Profit distribution: How profits and losses will be shared.

Minnesota Registered Agent Fee ($0-$300/year)

When starting an LLC in Minnesota, you need a registered agent. This can significantly affect your costs. You have a few options for registering your LLC.

If you choose to be your registered agent, it won’t cost you anything. You just need to provide your name and address.

Hiring a professional registered agent service generally costs between $100 and $300 per year. These services help protect your privacy and ensure you receive important legal documents.

For example, LegalZoom charges about $249 annually, while ZenBusiness offers services for around $199.

A great option is Northwest Registered Agent, which offers competitive pricing. If you use them to form your LLC, they provide free services for the first year. After that, their fee is just $125 a year, making it a budget-friendly choice.

EIN Cost in Minnesota ($0 from the IRS website)

Getting an Employer Identification Number (EIN) in Minnesota is free. The IRS has no fees for applying online, and you can easily complete the application on their website.

Once you complete the application, you will receive your EIN immediately. This number is important for opening a business bank account and filing taxes.

Minnesota Annual Renewal ($0)

In Minnesota, renewing your LLC is easy and requires no filing fee. You must submit an annual renewal to keep your business in good standing.

The deadline for this renewal is December 31. Mark this date on your calendar to ensure you don’t forget.

While there are no late fees, failing to file could lead to losing your LLC’s good standing. Therefore, always make sure to complete your renewal on time.

To renew, you can search for your LLC on the Minnesota Secretary of State’s website. This will allow you to find your business and follow the instructions to complete the renewal. It’s a straightforward process, and you can do it easily online.

LLC Name Reservation Fee in Minnesota ($55)

In Minnesota, reserving a name for your LLC costs $55 when filed online. This fee allows you to hold your business name for up to 12 months. If you prefer to file by mail, the fee is slightly lower at $35.

To reserve your name, complete a Request for Reservation form. This form can be easily accessed through the Minnesota Secretary of State’s website. Once filled out, you submit it along with the appropriate fee.

By reserving your LLC name, you ensure it won’t be used by anyone else during the reservation period. This is important because it lets you plan your business without worrying about losing your preferred name.

Make sure your chosen name meets Minnesota’s guidelines. It must be unique and not the same as or similar to existing registered businesses.

Fictitious Name/DBA Cost in Minnesota ($50)

If you want to operate your business under a name different from yours, you must file a DBA (Doing Business As) or Fictitious Name in Minnesota. This process is straightforward, and the cost is reasonable.

Both options allow you to register your business’s new name legally. Minnesota offers expedited services for an extra $20 if you file in person.

Before filing, make sure the name you want is available. It should not be the same as another registered business name in Minnesota. You can check the availability on the Minnesota Secretary of State’s website.

Once you have chosen your name and paid the fee, you will receive a certificate proving that you can legally use the name for your business activities.

Minnesota Certificate of Good Standing ($15)

A Certificate of Good Standing shows that your LLC is officially recognized and compliant with state laws. In Minnesota, you can obtain this certificate for $15 when you order online.

If you prefer, you can also request it by mail. The cost for mail requests is just $5. This is a popular option if you want to save money and don’t need it immediately.

To order your Certificate of Good Standing online, visit the Minnesota Secretary of State website. You’ll need to provide basic information about your LLC, including its name and registration details.

Minnesota Foreign LLC Registration Fee ($205)

If you have an LLC formed in another state and wish to do business in Minnesota, register it as a Minnesota foreign LLC. This process involves a few steps and a registration fee of $205.

You must file a Certificate of Authority to Transact Business in Minnesota with the Secretary of State. This document formally allows your out-of-state LLC to operate in Minnesota.

You can submit your application online, in person, or by mail. The fee is the same, but the filing method affects how quickly your registration is processed.

If you apply by mail, the fee is $185. For online or in-person submissions, you will pay $205. This slight difference in fees encourages faster processing for those who choose digital or in-person options.

Before filing, you must ensure that your LLC’s name is available in Minnesota. It’s also necessary to appoint a Minnesota registered agent who will handle legal documents and official communication on behalf of your LLC.

Minnesota Business License and Permit Fees (varies)

In Minnesota, there is no single state business license.

You might need a professional license specific to your field or a local permit from your city or county. The fees for these licenses and permits can differ widely based on the type of business and its location.

After establishing your LLC, your next step may involve securing additional licenses. These requirements will depend on your industry.

For example, healthcare, food service, or construction businesses often face stricter regulations and fees.

Here are some key points to remember:

• Professional Licenses: If your field requires a professional license, check with the relevant state board. Fees can range from $50 to several hundred dollars.
• Local Permits: Many cities or counties have their licensing requirements. Always consult your local government for details.
• Industry-Specific Costs: Some industries have unique compliance fees. For example, a restaurant might need health permits, while contractors may require bonding or insurance.

Minnesota LLC Taxes (varies)

In Minnesota, LLCs are treated as pass-through entities. This means that profits and losses pass directly to you, the member, who then reports these on your tax return.

You will need to pay several types of taxes, including:

• Federal Income Tax: LLC members pay tax on their share of the profits.
• State Income Tax: This is based on Minnesota’s graduation rates.
• Self-Employment Tax: A rate of 15.3% applies to your earnings.
• Sales and Use Tax: Minnesota’s state rate is 6.875%, with many areas imposing additional local taxes.

If your LLC has employees, there are additional costs:

• Payroll Taxes: These are required for employee wages.
• Property Tax: This is applicable if your LLC owns the property.

The specific taxes you face will depend on your business activities and industry. Since each business is unique, it is difficult to give a general cost estimate.

Minnesota LLC reinstatement fee ($45)

If your Minnesota LLC has been administratively terminated, you can reinstate it by paying a fee. The standard reinstatement fee is $25 to process it without speeding.

If you need the reinstatement to happen faster, you can choose to expedite the process for a fee of $45. This option is useful if you want your business to run quickly again.

To reinstate your LLC, complete the necessary forms and submit them with your payment. These forms are typically found on the Minnesota Secretary of State’s website.

It is important to file for reinstatement promptly. Waiting too long could have additional consequences, including losing your business name or penalties.

Minnesota LLC dissolution fee ($55)

Dissolving your LLC in Minnesota involves a specific fee. The cost is $55 for the expedited service requested in person.

If you choose to submit your dissolution by mail, you’ll pay $35. This option takes longer but can be more convenient for some.

To dissolve your LLC officially, you must file the Articles of Dissolution. This document confirms that you are ending your business operations. You can file this form online or by mail, depending on what works best for you.

When using the online option, remember that the fee remains $55 for expedited service and $35 if filed by mail.

Minnesota LLC Change of Registered Agent Fee ($55)

A fee is involved if you need to change the registered agent for your LLC in Minnesota. This change costs $55 if you file your request online or in person. If you file by mail, the fee drops to $35.

A registered agent is responsible for receiving important documents for your business. Updating this information is crucial to ensure you don’t miss any legal notices.

When you decide to make the change, you must fill out the appropriate form, available on the Minnesota Secretary of State’s website. Be sure to provide all required information to avoid delays.

Processing time varies after you submit your request. If you file online, expect a quicker turnaround within 1-2 days. Mail filings can take longer, so consider this when planning your change.

What is the Cheapest Way to Start Minnesota LLC?

When starting an LLC in Minnesota, you have a few options.

You can handle the process, use an online service, or hire a lawyer. Each method has its costs.

If you decide to file yourself, you must pay the state filing fee of $155 for the Articles of Organization. This is the simplest and cheapest way. You can submit the documents online or by mail. Just make sure you follow the instructions carefully.

Using an online service can also be affordable.

Companies like Northwest Registered Agent offer packages that include filing the necessary paperwork. Their starter package might save you some time, but it can cost more than doing it yourself. However, remember that these services often charge extra for add-ons, which can increase your total costs.

Hiring a lawyer to start your LLC is usually the most expensive option.

Attorney fees can range widely, often starting around $500. While this method provides expert guidance, the added costs may not be necessary if you understand the process.

The cheapest way to start your Minnesota LLC is to file the Articles of Organization independently. This option only requires the state filing fee, keeping your startup costs low.

Should You Use an LLC Formation Service in Minnesota?

When starting an LLC in Minnesota, you might wonder if you should use a formation service. There are several benefits to consider.

First, using a service like Northwest Registered Agent can save you time. They handle the paperwork for you, so you don’t have to worry about forms getting filled out incorrectly. This means fewer headaches and more time to focus on your business.

Privacy is another key benefit. Formation services often provide a registered agent service. This keeps your address off public records, helping to protect your privacy.

Moreover, these services offer compliance support. They can remind you of important deadlines and help ensure you stay in good standing with state laws. Knowing that experts are watching your back can provide peace of mind.

You also gain access to professional advice. Many services give you free access to experts or attorneys. Having someone to answer your questions can be invaluable, especially if you’re new to forming a business.

Frequently Asked Questions

What are the benefits of an LLC in Minnesota?

Forming an LLC in Minnesota protects limited liability, separating personal assets from business debts. It also offers flexible management options and potential tax benefits, such as pass-through taxation.

How do I start an LLC in Minnesota?

To start an LLC in Minnesota, choose a unique name and file the Articles of Organization with the Minnesota Secretary of State. You’ll need to pay the filing fee and may need to designate a registered agent for your LLC.

Do I need a business license for an LLC in Minnesota?

Whether you need a business license in Minnesota depends on the type of business you plan to operate. Some businesses may require specific licenses or permits, which you can check with local government agencies.

How much does it cost to reinstate an LLC in Minnesota?

If your LLC is administratively dissolved, reinstating it costs $45. You must also file the necessary reinstatement paperwork with the Minnesota Secretary of State.

How much does it cost to dissolve an LLC in Minnesota?

You must file a Statement of Termination to dissolve an LLC in Minnesota. This fee is $55 for expedited filings, whether done in person or online.

Do I need to hire an attorney to form an LLC in Minnesota?

Hiring an attorney to form your LLC is not mandatory. Many people successfully file the required paperwork themselves. However, consulting an attorney may be helpful if you have specific legal questions or complex business needs.

Should I hire an LLC formation service in Minnesota?

An LLC formation service can simplify the process, especially for first-time business owners. They handle the paperwork and help ensure compliance with state requirements, saving you time and hassle.

Are there penalties for paying my fees late in Minnesota?

Yes, failing to pay the required fees on time can result in penalties. Your Minnesota LLC may incur additional fees or face administrative dissolution if annual reports or taxes are not paid promptly.

What happens if I do not file my Minnesota LLC annual report?

If you do not file your annual report in Minnesota, your LLC may be administratively dissolved. This can lead to losing your business’s legal standing and protecting personal liability, so timely filing is important.