The cost to start an LLC (limited liability company) online in Minnesota is $155. We recommend Northwest ($29 + State Fees) to help form your LLC. This is a one-time filing fee for the LLC Articles of Organization. Some LLCs may need a business license in Minnesota. This depends on your industry and where your LLC is located.
Annual Obligations and Taxes
The Annual Renewal requirement applies to all Minnesota LLCs. Minnesota does not levy any personal income tax on LLCs. The State of Minnesota mandates that you appoint a registered agent when forming an LLC. The price for a registered agent in Minnesota varies between $50 and $100 a year.
Minnesota LLCs must pay a state sales tax rate of 6.785%. Filing annual reports or annual renewals in Minnesota is free for all LLCs.
Additional Costs
To form an LLC in Minnesota, the regular filing fee is $155 (online and $135 by mail or in-person); if you need expedited processing, it will cost an additional fee.
If your company expands and needs to conduct business as a foreign LLC, the registration costs $205 online, and $185 via mail.
LLC Taxation in Minnesota
In Minnesota, if your LLC is taxed as a corporation, the corporate tax is generally a flat 9.8% of taxable income. LLCs also pay sales tax, with rates up to 8.375% once local taxes are added.
Minnesota Franchise Tax is imposed on multi-franchise LLCs with estates, annual earnings, and annual sales totaling more than $970,000. As a C Corporation, you will be required to pay a Corporation Franchise Tax.
Concluding Tips
Minnesota LLCs are relatively inexpensive and offer liability protection for the LLC owners. That’s why forming an LLC is the best choice for most small businesses.
It’s important to note that all Minnesota LLCs are required to pay an annual franchise tax.
For example, if you buy furniture for your MN LLC and need to pay use tax, this will be an additional cost.
In summary, the cost to form an LLC in Minnesota includes the filing fee ($135 by mail, $155 online or in person) and other potential expenses like registered agent fees, taxes, and operational costs.