Starting a Limited Liability Company (LLC) in Minnesota is an important step for any small business owner. This guide explains the requirements and rules of LLCs in the state, as well as how to register your business with the state government.
Choose an Available Name for Your LLC.
When registering a Minnesota LLC, the first step to take is finding an available name for your company. Your business name must include one of the following words or abbreviations: LLC, L.L.C., Limited Liability Company, or Ltd. Liability Co. The name you choose may not be deceptively similar to any other existing business in the state, nor can it contain certain prohibited terms such as ‘bank’ and ‘insurance’ without the proper licenses and authorization. You can search the state’s database of registered names on its website to ensure your desired name is available.
After selecting an available name, you’ll need to file Articles of Organization with the Minnesota Secretary of State. The articles must include basic details such as the LLC’s name and address as well as the name and address of its registered agent. You’ll also have to pay a filing fee of $155 and provide any additional documents required by the state. Once your Minnesota LLC is officially formed, you’ll be able to move forward with obtaining business licenses and opening a business bank account in your company’s name.
When it comes to choosing an LLC name, you’ll need to make sure that your choice is not similar or identical to a name already in use in Minnesota. You can check the Secretary of State’s website to ensure that the desired name is available for use. The state recommends using a combination of words and numbers rather than simply repeating words in order to avoid any potential confusion. If your desired name is taken, you’ll have to choose another one or select an available LLC ‘assumed’ name.
Your LLC name must end with the term limited liability company, an abbreviation of the same (LLC or L.L.C.) or an approved variation such as Limited Company or Ltd. Co. Additionally, you may not use language suggesting that your LLC is formed for any purpose other than what has been legally listed in your articles of organization. Make sure to avoid words and phrases like bank, attorney, university and insurance needed pre-approval from another state agency. Lastly, you must reserve a name before filing articles of organization if you want to secure it before formally establishing your Minnesota LLC.
Pick a Statutory Agent.
Every LLC must appoint a statutory agent – also known as a registered agent – during registration. A statutory agent is an individual or entity designated to accept legal papers on behalf of the Minnesota LLC. They must have a physical address in Minnesota and will serve as the contact point for official business-related communications and legal proceedings. The statutory agent can be an individual associated with the LLC, such as a member or manager, or it can be an outside service provider.
Depending on the complexity of your LLC, the amount of paperwork you need to file and the tax forms you must submit, it may be wise to consider a professional service provider. An experienced service provider will be able to assist with filing paperwork, help you understand state laws and statutes related to business operations, provide guidance in choosing the best type of LLC for your needs, as well as serve as your statutory agent. In addition, an experienced accountant can help you understand taxation for international business entities and complex LLC operations.
All LLCs doing business in Minnesota must file Articles of Organization with the Secretary of State and appoint a statutory agent. A statutory agent is someone (like an attorney, accountant, or other service provider) who has agreed to accept legal documents on behalf of your LLC. A statutory agent serves as ‘the face’ or point of contact for the LLC and must be able to receive mail at an address located within the state. Depending on the type of service provider you use, they may be able to provide all LLC services while serving as your registered agent.
When you’re trying to decide on a statutory agent, it’s important to make sure that the individual or company is properly registered with the state and able to provide services in Minnesota. You should also consider their level of experience, cost, and customer service. A quality statutory agent will be up-to-date on the laws and regulations that affect your LLC and provide quality service within a reasonable time frame. It is also important to choose an agent who has the capability of forwarding mail from the registered office location if necessary. Doing your research prior to selecting a statutory agent is essential in making sure you pick the right person or company for your business needs.
In Minnesota, all LLCs are required to designate a statutory agent. This is a resident of the state or authorized business entity who has agreed to accept service of process on behalf of the LLC in the event of legal action being taken against the company. The statutory agent also serves as the point of contact for receiving notices and filings from government bodies such as the Secretary of State. It is important that you select someone reliable and living in Minnesota who is available during normal business hours to accept these documents when needed.
When selecting your statutory agent, keep in mind that the individual or business you choose must have a physical street address in Minnesota. Not only does this mean the address is in a domicile of Minnesota, but an actual street address is required – PO Boxes and virtual offices are not allowed. This person or authorized entity also becomes responsible for receiving notices on behalf of the LLC such as delinquency order, taxes due and other legal notices. The statutory agent may be an existing business in Minnesota or an individual resident of the state who has agreed to act as your company’s appointed contact.
File Your Registration Documents With the State.
You’re one step closer to completing the registration process for your Minnesota LLC! Once you have gathered all of your required documents, you can file them with the Minnesota Secretary of State. This can be done online, via mail, or in-person.When submitting the documents and filing fee online, you will receive confirmation once they have been processed and accepted. Afterward, if any changes need to be made to your LLC’s information or structure, you’ll need to file additional documents with the Secretary of State. Additionally, make sure to keep track of filing deadlines and fees for any annual reports that may be due.
All registered LLCs in the state of Minnesota must pay an annual Business Filing Fee. This fee is due each year before the initial anniversary date of your LLC’s formation or registration. The amount of the fee varies depending on how many members your LLC has, with a minimum fee of $55 and a maximum fee of $3,000. Furthermore, you should keep in mind that any business activities conducted in other states may require additional filings to be made. Be sure to look up the laws specific to your state to determine what other requirements you might have for operating an LLC at the federal level.
To make sure your Minnesota LLC is in complete compliance with state law, submit the Articles of Organization to the Secretary of State’s Office. While there is no filing fee associated with this paperwork, it is important to fill out completely and legibly so as to avoid any delays. Once these documents have been submitted, you’ll need to file an annual report every year that includes information about the business and its members. It’s also important to make sure that all necessary registrations are taken care of such as obtaining a federal tax identification number (EIN). Finally, once all required paperwork has been filed upon registration, your LLC will be officially established in the state of Minnesota!
Making sure that your LLC is in compliance with all state regulations is key to its success. Once you have completed the registration process, you can focus on growing your business, such as setting up an online store or developing marketing materials. Keeping track of paperwork and filing deadlines is important to ensure that your LLC remains in good standing with the state. In addition to staying compliant, take advantage of the various programs offered by the Minnesota Secretary of State to learn more about how legal requirements change and maximize the potential for success for your limited liability corporation.
Pay the Filing Fee and Any Additional Taxes and Fees.
Once your LLC’s formation documents are properly completed and signed, you will need to pay the filing fee to the Minnesota Secretary of State. The amount of the fee varies depending on the type of LLC you are forming. In addition, you may be required to pay additional fees or state taxes when registering your Minnesota LLC. Contact your local or state IRS office for more information regarding taxation requirements specific to your business entity.
The filing fees are due when the articles of organization are submitted to the Minnesota Secretary of State. The fee may be paid with cash, check, money order or credit card. Before an LLC formation is officially recognized by the state, the documents must be signed by you as organizer and all initial members of your company.
If necessary, additional taxes and fees may also be required prior to the LLC formation being approved. For example, if your business revenue is expected to exceed $90,000 in the first fiscal year after formation, you will be responsible for payment of any applicable unemployment contribution tax. This must be submitted by mail with a check drawn on an approved Minnesota bank. Additionally, you may also need to state sales/use taxes during registration or at another point in the life of your LLC. Paying applicable taxes on time helps to maintain compliance with legal requirements and protect against any future tax penalties.
After submitting your filing fee, the state will use these funds to process your registration and ensure that all required standard LLC documents are submitted correctly. The turnaround time for approval can usually be expected within approximately 24 hours to two weeks depending on the complexity of the information provided. During this time, you may be contacted by government officials with additional questions about your business as well as reminder notices about any taxes or fees due. It is important to remain in communication with the Department of Revenue throughout this process and watch for their follow-up emails or letters.
Comply With Other Requirements, Including Getting a Business License and Permits.
In addition to the filing requirements outlined above, you’ll need to obtain a business license and permits – and potentially any other necessary registrations – to legally operate your LLC in Minnesota. Depending on the type of business you are operating, you may need to comply with additional licensing or permitting requirements in the city or county where your business is based. Contact your local government for more information about registering for permits, licenses, or other specific registrations.
In addition to registering for permits, licenses, and other registrations with your local government, you may also be required to comply with certain federal regulations. For example, if you are operating certain kinds of businesses’ such as a food or pharmaceutical business’ you will need to register for specific federal licenses. Additionally, most LLCs must obtain an employer identification number from the Internal Revenue Service (IRS). Refer to the IRS website for more information about identifying which regulations apply to your business and how to attain necessary documents.
You may also be required to register your LLC with the Minnesota Secretary of State (SOS), and potentially other state agencies, depending on the nature of your business. However, for most small businesses in Minnesota, registration with the Secretary of State is not necessary. Be sure to research potential requirements from additional state agencies and understand the rules and regulations that apply to your specific business before you can officially form a Minnesota Limited Liability Company. Doing so will ensure you are licensed properly and don’t face penalties or fines down the line.