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Perhaps you are hoping to form a Minnesota LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Minnesota.
Minnesota LLC Cost of Filing
Here are the costs involved in forming an LLC in Minnesota.
Cost of Filing Formation Certificates
The Minnesota Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Minnesota Secretary of State.
Minnesota Domestic LLC
- Online filing costs $155
- Annual Report filing costs $0
- Name Reservation fee costs $55 (online) and $35 (mail)
- By Mail: Fill out the Application Form PDF and submit it to the following address: Minnesota Secretary of State – Business Services Retirement Systems of Minnesota Building 60 Empire Drive, Suite 100 St Paul, MN 55103, costs $135
Minnesota Foreign LLC
- Online filing costs $205
- Annual Report filing costs $0
- Name Reservation fee costs $55 (online) and $35(mail)
- By Mail: Fill out the Application Form PDF and submit it to the following address: Minnesota Secretary of State – Business Services Retirement Systems of Minnesota Building 60 Empire Drive, Suite 100 St Paul, MN 55103, costs $185
You can visit the Official Secretary of State of Minnesota website to learn more about Business Forms and Fees.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Minnesota LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Minnesota, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
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Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Minnesota Department of Revenue for regulatory boards or agencies requiring licensing.
Minnesota LLC Taxes to be Paid
Though the annual report filing in the State of Minnesota is free of cost, the LLCs in the State are subject to different State Tax filing obligations. Though the taxes vary from county to county.
Minnesota State Income Tax
This is the State Tax levied on any income you pay to yourself. The tax rate varies between 5.35% to 9.85%, depending on the total amount of taxable income.
Minnesota Sales Tax
The standard rate of sales tax applicable is at the rate of 6.875% and after the addition of local taxes, the rate can go as high as 8.375%.
Minnesota Federal Self- Employment tax
Any profit that Minnesota LLC Business members draw out from the business is liable to pay self-employment tax. The standard tax rate is 15.3%.
Employer Payroll Tax Withholding
If you hire employees in Minnesota, you must withhold payroll tax from their salaries. The standard rate of withholding is 7.65% of the taxable salary of the employees.
Cost Comparison among States
Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to Minnesota, read the table below:
| State | Filing Fee | Annual Fee/Biennial Fee | Sales Tax |
| Minnesota LLC | $135 (mail)$155 (online) | $0 | 6.875% |
| Wisconsin LLC | $130 (online)$170 (mail) | $25 | 5.00% |
| North Dakota LLC | $135 | $50 (annual) | 5.00% |
| Iowa LLC | $50 | $45 (online) (biennial)$60 (mail) (biennial) | 6.00% |
| South Dakota LLC | $150 | $50 (annual) | 4.50% |
The State of Minnesota’s economy has flourished in the previous decade with impressive wealth and low poverty rates. The major contributing industries are agriculture, manufacturing, and mining.
Other Costs
- Minnesota Name Reservation: $55 for online fillings or $50 by mail
- Doing Business As (DBA): $50 for online filling or by mail
- Certified Document Copies: $.10 per page
- Certified of Good Standing: $14
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Minnesota LLC: $55 for online fillings or $35 by mail
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
How Much Does It Cost to Maintain an LLC in Minnesota
To maintain an LLC in Minnesota you do not need to pay an annual fee. However, state income tax at 5.35% to 9.85%, sales tax at 6.875% and federal taxes are levied.
One of the main costs associated with maintaining an LLC in Minnesota is the annual renewal fee. All LLCs in the state are required to file an annual renewal with the Minnesota Secretary of State and pay a renewal fee to keep their business in good standing. This fee is typically a few hundred dollars and must be paid each year to avoid falling out of compliance.
In addition to the annual renewal fee, LLCs in Minnesota may also need to pay for a registered agent service. A registered agent is a person or company designated to receive legal documents on behalf of the LLC. Most states, including Minnesota, require LLCs to have a registered agent to ensure that important legal papers are properly received. While business owners can serve as their own registered agent, many choose to hire a service for convenience and peace of mind. This service typically costs a few hundred dollars per year.
Another cost to consider when maintaining an LLC in Minnesota is the fee for filing annual reports. While not all states require annual reports from LLCs, Minnesota does. These reports provide updated information about the business, its owners, and its activities and are used by the Secretary of State to keep accurate records. Failure to file annual reports can result in penalties and, ultimately, the dissolution of the LLC. The fee for filing annual reports in Minnesota is typically a nominal amount.
Furthermore, LLCs in Minnesota may incur additional costs for things like business licenses, permits, and professional services. Depending on the nature of the business, these costs can vary significantly. For example, a tech startup may need industry-specific licenses and permits, while a consulting firm may require professional liability insurance. It’s important for business owners to research and budget for these additional costs to ensure compliance with state regulations and protect against potential liabilities.
Overall, the cost of maintaining an LLC in Minnesota is manageable for most businesses, but it’s important for owners to factor these expenses into their financial planning. By staying on top of annual renewals, filing accurate annual reports, and fulfilling any licensing or permit requirements, business owners can ensure their LLC remains in good standing and continues to operate legally in the state. The benefits of operating as an LLC, such as limited liability protection and tax advantages, often outweigh the costs associated with maintaining the business entity.
In Conclusion
The cost of Minnesota is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.