In Minnesota, as in most states, the primary step in creating a limited liability company (LLC) is to file articles of organization with the state.T ...
Cost to Start an LLC in Minnesota
Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on August 6, 2022
Updated on October 2, 2023
If you’re thinking of starting a limited liability company (LLC) in Minnesota, you’ll want to know in advance how much it’s going to cost. LLC formation fees vary by state, so it’s wise to do a bit of research and prepare yourself, and your new business, for the necessary steps.
LLC Costs in Minnesota
|Articles of Organization||$155|
|Certified Copy – Articles of Organization||$18|
|Certificate of Good Standing||$5|
|Registered Agent Service||$50 – $300|
|Operating Agreement||$0 – $2500|
|Franchise Tax||9.8% if LLC is taxed as a corporation|
|Business Licenses and Renewals||varies – check with state and local government|
Minnesota Articles of Organization Cost
In Minnesota, you form an LLC by filing Minnesota articles of organization, which requires a $155 fee. It’s a simple process you can do online at the Minnesota Secretary of State’s website. You’ll need to create an account on the site and log in to file. If you file online, your LLC should be formed immediately.
If you need a certified copy of the articles of organization, there is a $18 fee. If you need a Certificate of Good Standing, there is a $5 fee. If you’d like the state to hold your LLC name before you register, you can apply here for $35 to reserve it for 12 months. You’ll need to mail the form with the fee to:
Minnesota Secretary of State
First National Bank Building
332 Minnesota Street, Suite N201
Saint Paul, MN 55101
Minnesota Registered Agent Cost
In Minnesota, you are required to have a Minnesota registered agent, also known as an agent of service in process. A registered agent is a person or business authorized to accept and respond to legal, tax, and financial documents on behalf of your business.
In Minnesota, you can be your own registered agent, or it can be another member of the LLC. An individual who is not a member or a professional agency can also serve as the registered agent for your LLC.
Minnesota Business Licenses and Permits Cost
Starting an LLC in Minnesota requires obtaining the required licenses and permits from local, state, and federal governments. Fees for these vary, but most costs are minimal.
Federal regulations, licenses, and permits associated with starting your business include doing business as, health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific permits.
You may also need state-level and local county or city-based licenses. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments to learn more.
Business license fees depend on the type of business and the agency issuing the license or permit. On average, business licenses cost between $100 and $300+, plus renewal fees.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package ($149 + state fees). They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
Minnesota Operating Agreement Cost
In Minnesota, your LLC is not required to have an operating agreement in place. But it’s highly recommended, as an effective operating agreement can help avoid disputes and lawsuits that could threaten the stability of your LLC.
An LLC operating agreement is an important legal document that details who owns the business and provides essential information pertaining to member duties. An LLC operating agreement establishes the financial relationship between members and the basics of the working relationships between those members and the managers who oversee daily operations.
The operating agreement is not filed with the state, but instead remains private. It’s advisable to hire an attorney to ensure your operating agreement is thorough and legally binding.
Creating an operating agreement is free if you just draw it up yourself (here you can find free Minnesota LLC Operating Agreement template). Alternatively, you can pay around $100 for guidance from an online business advisory.
This is an extremely important document, so it’s recommended that you use the services of a specialist or legal firm. If you choose to hire an attorney to help you create this document, the price will be around $500 for a single-member LLC and $2,500 for a multi-member LLC.
Minnesota LLC Formation Service Cost (Optional)
Forming an LLC in Minnesota tends to involve a lot of red tape and paperwork, so for many entrepreneurs just starting out it’s a good idea to hire an experienced service provider.
Some of the best services for forming an LLC in Minnesota are ZenBusiness and Northwest Registered Agent. LLC Formation service will take care of all the key steps, keeping you updated while allowing you to focus on launching and growing your business.
The cost of professional services depends on your requirements and LLC formation plan. Most LLC service providers offer different plans/packages and there are many LLC services that offer free LLC formation.
Ongoing Minnesota LLC Costs
Every state has a different fee structure and timelines for LLC documents and licenses. It’s important to stay up-to-date or your business could face significant penalties. The fees and timelines for Minnesota are detailed below.
You’ll need to file a Minnesota LLC annual renewal with your state to keep your LLC in good standing. There is no fee, and you can file online at the Minnesota Secretary of State’s website. You’ll need to log in to renew your LLC.
Franchise Tax Reports
A franchise tax is not a tax on a franchise business. It is a fee that the state imposes on registered business entities for the right to operate. You have to pay this tax if your LLC is taxed as a corporation. Minnesota charges an annual franchise tax rate of 9.8%.
Business License Renewal Fees
Some business licenses and permits must be renewed periodically, which may have a small associated fee. In Minnesota, a sales tax license has no fee and no renewal requirements.
Other business-specific licenses and permits, such as permits for retail food establishments or professional licenses, must be renewed annually. You’ll need to check with the offices that issue your required licenses and permits, at both the state and local levels, for renewal requirements and fees.
It’s best to set calendar reminders for all your license renewals so that you stay in compliance with the law.
Cost to Start an LLC in Minnesota
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