If you are planning on starting an LLC in Minnesota, then you have come to the right place. For those of you who don’t know, starting a limited liability company in this state can be very beneficial for everybody.

LLCs often have different tax rules compared to corporations. This can lead to big savings. Plus, as the name suggests, they offer liability protection. This covers both financial and legal matters.

This means that the company itself is held liable, instead of you, the individual. However, forming an LLC in Minnesota requires quite a few steps that you have to follow, and right now we’re about to provide you with a guide on the matter. Let’s get to it and figure out everything there is to know about how to start an LLC in Minnesota.

1. Choose a Name

You can’t start a company without a name, so the first step in this process is to name your limited liability company. First and foremost, there are a few requirements that your name has to meet, including the following:

  • The name of your LLC cannot be the same as any other existing business in the state of Minnesota. You’ll need to check if your business name is free. Do this by searching online with Minnesota’s Secretary of State. You can follow this link to figure out whether or not your name has already been taken.
  • The name of your LLC also has to include certain words, phrases, or abbreviations, mainly related to it. LLC, L.L.C, or limited liability company have to be included in the name.
  • There are certain words or phrases that are strictly prohibited, such as CIA, FBI, treasury, and state department. There are also certain restricted words that may require additional licensing and documentation. For example, words like lawyer, bank, attorney, credit union, and more. For a full list of the naming rules for LLC in Minnesota, follow this link.

There are also other considerations to keep in mind here. You can already chosen a name, but you aren’t yet ready to form the LLC. There is a form that you can fill out. It comes along with a small fee that you have to pay, so you can reserve a company name.

Something else you should then consider is the availability of the domain name. The simple reality is that today, having a website is very important for the overall success of your business. 

However, the name of your business should also be the same as the domain name. In other words, the address of the website. Therefore, you might also want to do a domain name check to see if that specific URL is available.

If you need unlimited ideas for your name, check our BNGai free business name generator.

2. Establish a Registered Office

You have to have a registered office for your limited liability company in the state of Minnesota. The address of the office has to be in the state of Minnesota.

However, although it is not 100% legally required, an LLC in Minnesota may also want to appoint a registered agent. It is an entity or person that is authorized to receive service of process and other documents on behalf of the LLC.

This registered agent can be either a company or an individual. If it is an individual, it may be yourself or an employee of the company.

Also, if you pick a company as your registered agent, it must be one that’s allowed to offer such services. Plus, the agent needs to be based in Minnesota and available at their office during usual work hours to receive documents.

3. File the Articles of Organization

Next on the list, to form a limited liability company in the state of Minnesota, you must prepare and file the articles of organization. This is not a very long or difficult job at all, because all you really have to do is fill out an online form and pay a small fee. It’s something that should only take a few minutes or hours at the very most.

Once your forms have been filled out and filed, the state of Minnesota will provide you with a certificate which confirms that your limited liability company formally exists.

You’ll need this certificate so your limited liability company can get business licenses, get your employer identification number, open a business bank account, and more. There are a few vital pieces of information that you’ll need to include in your forms.

  • The name of the limited liability company.
  • The location and name of the registered office.
  • The name of the registered agent, if you have one.
  • The name, address, and signature of the organizer.
  • An official e-mail address.
  • A daytime phone number and a contact name.

4. Create a Business Operating Agreements

Although the state of Minnesota does not officially require LLCs to have an operating agreement, it’s still a good idea to have one. The reason for this is because an operating agreement provides you with a method or guidelines to follow in the event that something goes wrong, both in legal and financial terms.

For instance, if you do not have an operating agreement in place, Minnesota State courts will simply refer to their own laws and legislation in regard to how to solve problems, as opposed to doing what might be best for you or the LLC. 

There are some important pieces of information that everybody should include in a good operating agreement, including the following:

  • The name of the limited liability company and the principal address.
  • The estimated duration of the limited liability company.
  • If you have one, the name, and address of the registered agent.
  • Any crucial information regarding the articles of organization.
  • The purpose of the limited liability company.
  • All members, their contributions, and their investments.
  • How finances will be handled.
  • How incoming and outgoing members will be handled.
  • The management structure.
  • Liability and indemnification clauses.

5. Obtain an EIN

The Internal Revenue Service or IRS for short, assigns all companies with a 9 digit EIN or employer identification number. Follow this link to obtain your EIN. Keep in mind that this EIN or employer identification number is something that every business is legally obligated to possess.

Without an EIN, you can’t file and manage your taxes, whether at the federal or the state level. Of course, paying your taxes is an essential part of remaining legal, so essentially, without an EIN, you can’t pay taxes, and you therefore wouldn’t be legal. 

Furthermore, you also need an EIN so you can open up a business bank account, hire employees, and in many cases also to get a line of credit for your LLC.

6. Additional Steps

One of the things that you need to be aware of in terms of your limited liability company is that in the state of Minnesota, you have to file an annual report every year.

Reporting

This annual report has to be filed by December 31st, with the start date being one year after the filing date of the articles of organization. You may also have to make quarterly tax payments for your limited liability company. On that note, you need to register your limited liability company with the tax agency for the state of Minnesota.

Licenses and Permits

Although exactly what you require will depend on the type of limited liability company you are running, you may also require a variety of other licenses and permits to legally operate your business.

This may include a seller’s permit, various zoning permits, health department permits, professional licenses, home occupational licenses, and more. 

Therefore, we strongly recommend doing some research to see what kinds of licenses and permits you’ll need for your specific type of business.

Insurance

Depending on the type of business you are running, you may then also require some type of business insurance. There are many different types of insurance that you may purchase for your limited liability company, and we strongly recommend doing some research on this front as well. Although limited liability companies do provide you with some form of limited liability if something goes wrong, it’s always best to be insured if possible.

Conclusion

The bottom line here is that in the state of Minnesota, forming a limited liability company provides you with many different benefits. Now that we’ve provided you with all of the information you need on this matter, starting your own LLC in Minnesota should be fast and easy.