How To Start An Llc In Minnesota – Disclaimer: We are supported by our readers. We may receive an affiliate commission if you make a purchase through links on our site.
Forming an LLC is a good option for business development in Minnesota. A limited liability company allows you to strengthen the operation of your company and legitimize your business.
How To Start An Llc In Minnesota
The cost of forming an LLC in Minnesota is between $135 and $155, which covers all filing fees. You can start your LLC in about 2-5 business days. An LLC is a good idea for small businesses because it allows you to separate your personal and business assets in case your business runs into legal or financial trouble. This gives you the freedom to continue operations as a sole trader while still having the protection of a corporation.
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You can file your own LLC or through a professional service. While filing on your own isn’t difficult and doesn’t take too much time, you’ll want to make sure your LLC is set up correctly the first time and complete each step as outlined below.
If you don’t want to deal with the legal side of your business, we recommend that you hire experts to fill out all your business documents (the worry-free approach).
To form an LLC in Minnesota, you must meet specific naming requirements established by state law. Your business name must be unique, meaning no other business has a similar name.
Before checking whether you have the business name you want to comply with Minnesota LLC law, make sure your business name contains one of the following:
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Your LLC name can be your business name, such as Plumbing King L.L.C, or the name of one of the members of your LLC, such as Joe Smith LLC.
Once you’ve picked your name, you’ll want to check to make sure it already exists and that there aren’t any other businesses using it in Minnesota. A quick and easy way to do this is to do a quick Google search with your desired name.
If you don’t find any competing businesses, you can proceed to the next step – check your potential business name with a Minnesota business name search.
If you are not yet ready to form an LLC but plan to do so in the future, you can reserve a name for up to 12 months by filling out a name reservation form provided by the Minnesota Secretary of State Business and Lien System. You can submit it online or in person for $55 or $50 by mail.
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If you don’t want to use an LLC in your company name, you can add a fake name after your company is registered. Also known as a DBA (“doing business with, “) or trade name, a fictitious name allows you to conduct your business under a different name than the registered name of a legitimate LLC.
You can also use a fictitious name if you plan to run several different businesses under your LLC.
Your DPA name must be registered by submitting an assumed name certificate to the Minnesota Secretary of State. The form can be submitted online for $50 or by mail for $30. After you are approved, but before you can use the DPA name, you must print a certificate of assumed name in two consecutive issues of local newspapers for the county where your company is located.
Once you’ve decided what your business name is and you’ve made sure it’s still available, the next step is to choose a registered agent to help with the legal side of your business.
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A registered agent is anyone who accepts and sends legal documents on behalf of your company. They are the main point of contact between your company and the Secretary of State.
A Minnesota LLC must have a registered agent who resides in Minnesota and has a valid street address (not a PO Box).
While it may seem like the easy way out is for yourself or one of your LLC members to act as the registered agent, there are some advantages to hiring a professional. A registered agent can help you stay organized and current, and ensure your business is in good standing with the state. It also adds a layer of protection as they help you in case of legal action or fines/fines.
After deciding who is the best person to be your registered agent, the next step is to file an LLC application.
How To Get An Ein For A Minnesota Llc (step By Step)
To form an LLC in Minnesota, you must file articles of incorporation. Be prepared to include the following:
If you (and the other owners of the LLC) are responsible for the day-to-day business operations, the member manages it. In contrast, manager-led is when you decide to hire a non-member to manage the day-to-day operations of your company.
Member-led is common for small businesses, while larger businesses typically use manager-led. If youare a passive investor and do not get much involved in the company, you will usually choose to be managed by a manager.
The Minnesota Secretary of State’s Business and Lien System allows you to complete and submit forms online, or you can print, mail, or submit them in person. However, to access the forms you must first register an account on the website. It costs $155 online or $135 by mail and takes 2-5 business days for approval.
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After receiving the approval, you can proceed to step 4 – drafting the operating agreement of the LLP. If you are managing your LLC yourself, skip to step 5.
If your LLC has two or more members, it must have an operating agreement. Although it is not required in Minnesota, we recommend creating one to describe how the company is structured and how it operates among its members (and/or managers).
Again, this is not a required step as you do not need to file it with the Secretary of State, it is recommended if your LLC has more than 2 members. This will help to clarify the rules of your LLC and ensure that they are legally documented.
After negotiating and executing the LLC operating agreement, the next step is to create a unique employer identification number.
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An EIN is a federal tax identification number that registers you with the Internal Revenue Service (IRS). This number identifies your company when filing taxes.
If you apply online, you will receive instant approval. If you apply by fax, it will take 4 working days, and mail can take up to 4 weeks. Applying for an EIN is completely free!
Ready to get started? Make sure you dot the i’s and cross the t’s with this simple checklist!
Always double check that your LLC information is correct before submitting any documents. You want to avoid common mistakes and make sure your business is set up from the start. If it fits your budget, we recommend using a formation service to help you set up your LLC. They can act as your registered agent and ensure that your business is always in good standing. Make sure you do your homework and choose one of the best LLC services for your business.
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Our first recommendation is ZenBusiness, an LLC formation service that holds your hand from start to finish. Packages start at $49.
Now that you know the exact steps needed to form an LLC, it’s time to begin the application process. There are two ways to do this:
If you’re on a tight budget or you’ve started an LLC before and understand how it works, the DIY route is a good option.
Using an LLC formation service is a good option if you are starting an LLC for the first time and it fits your budget (formation services cost anywhere from $49 – $199). This is usually a good choice if you want to avoid headaches and have the peace of mind knowing that professionals will take care of everything for you.
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ZenBusiness has built its platform to meet the needs of your business for life. When you pay for their services, you get a personalized dashboard for your business to save documents, receive alerts and manage your website.
Their pricing model also depends on the status you fill. You can create a personal quote on their website by entering the necessary information about your company.
LegalZoom is an online legal service provider that helps you create legal documents without paying expensive attorney fees. Some of the services they provide include business creation, copyrights and trademarks.
LegalZoom has many different pricing options. Pricing for their LLC service starts at $79 + applicable tax.
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You’ve been approved – now what? The journey doesn’t end there – there are a few more things you need to do to get your business off the ground. To make sure your LLC gets off on the right foot, we recommend checking the following items.
Even if your business is local, an online presence is important for building trust, professionalism and a way for people to find you. If you haven’t thought about getting a website yet, now is the time. In a tech-saturated world, you need it