Starting a business in Minnesota comes with real opportunity. The state’s diverse economy spans thriving tech startups in Minneapolis, healthcare innovators in Rochester, manufacturing in Duluth, and small businesses that power communities across St. Paul and beyond. If you’re ready to turn your idea into something official, forming an LLC in Minnesota is a practical first step.
Let’s walk through how to start an LLC in Minnesota, including naming requirements, filing details, registered agent rules, and ongoing compliance steps. With the right preparation, you can build a strong legal foundation for your business and focus on growing your brand anywhere in the Land of 10,000 Lakes.
Related: Corporation versus LLC
LLC Registration
Our trusted experts who know LLC formation inside out will give you step-by-step guidance through the process.
How to start an LLC in Minnesota in 5 steps
To open an LLC in Minnesota, you need to choose a name, appoint a registered agent, file Articles of Organization with the Minnesota Secretary of State, create an operating agreement, and get an EIN from the IRS. Don’t let this task list scare you off! The process can usually be completed online in just a few days.
If you’re new to entrepreneurship, you may want to review this guide on how to start a business. When you’re ready to take the leap, set up your LLC for free with GoDaddy Airo®.
1. Choose a name for your LLC
Before diving into paperwork, start by naming your LLC. Your name shapes first impressions and helps define your brand, so it should be memorable, professional, and aligned with your goals. At the same time, it must meet Minnesota’s legal requirements, meaning it must:
- Include “Limited Liability Company” or an abbreviation such as “LLC” or “L.L.C.”
- Be distinguishable from other business names already on file in Minnesota
- Not imply that your business is a government agency
- Avoid restricted words, such as “bank” or “insurance,” unless you have proper approval
Before you move forward, search the Minnesota Secretary of State’s business filings database to confirm your desired name is available. If you’re not ready to file your Articles of Organization yet, you can reserve a business name for 12 months by submitting a name reservation application and paying the $55 fee.
Get your business domain name
Once you’ve chosen a name for your Minnesota LLC, buy the matching domain name to protect your online presence. A professional web address builds credibility and makes it easier for customers across Minnesota to find your business. Claiming your domain early helps ensure your brand stays consistent online.
Get a DBA
What is a DBA, and how does it support your business strategy? A DBA (“Doing Business As”), commonly called an Assumed Name in Minnesota, enables your LLC to operate under a different name than its registered legal name. For example, “Twin Cities Custom Woodwork LLC” might file an Assumed Name to do business as “TC Wood Co.”
You can register an Assumed Name online with the Minnesota Secretary of State for $50. It must be renewed every year by filing an Annual Renewal for no fee.
2. Appoint a registered agent
Every Minnesota LLC must designate a registered agent (often called a registered office). This person or business is responsible for receiving legal documents, service of process, and official notices on behalf of your LLC. Having a reliable registered agent helps ensure you never miss important communication from the Minnesota Secretary of State or the courts.
Your registered agent must:
- Have a physical street address in Minnesota, not a P.O. box
- Be available during normal business hours
You can appoint yourself, another member or manager, or a qualified third party. Many business owners choose a professional registered agent service for added privacy and peace of mind.
3. File Articles of Organization
To officially form your Minnesota LLC, you must file Articles of Organization with the Minnesota Secretary of State. You can submit your filing online or by mail. Be prepared to provide:
- Your LLC’s legal name
- The address of your registered office
- The name and address of your LLC organizer
- An email address for official notices
Minnesota’s filing fee is typically $155 for online or in-person filings and $135 for mail filings. Online submissions are often processed quickly, sometimes within a few business days.
4. Create an operating agreement
An LLC operating agreement is an internal document that outlines how your business will operate and helps protect your limited liability status. It can also prevent misunderstandings among members. Minnesota does not require LLCs to file an operating agreement with the state, but creating one is strongly recommended. Even if you’re forming a single-member LLC, an operating agreement adds credibility and reinforces the separation between you and your business.
Your operating agreement should clearly define:
- The roles and responsibilities of members or managers
- Ownership percentages
- How profits and losses will be distributed
- Voting rights and decision-making procedures
- The process for adding or removing members
- Recordkeeping practices
- What happens if the LLC dissolves
5. Get an EIN
An Employer Identification Number, or EIN, is a federal tax ID issued by the IRS. Your Minnesota LLC will need an EIN to handle key business tasks, including:
- Filing federal and, if applicable, state taxes
- Hiring employees
- Opening a business bank account
- Applying for certain licenses or permits
Businesses can apply for an EIN through the IRS website. For more guidance on business tax IDs, read this guide to TIN vs. EIN.
How long does it take to get an EIN?
If you apply online through the IRS, you’ll receive your EIN immediately after completing the application. If you submit your request by mail or fax, processing typically takes several weeks.
How much does an EIN cost?
There is no cost to apply for or maintain an EIN. The IRS does not charge application, renewal, or processing fees.
Types of LLCs available in Minnesota
There are several types of LLCs to choose from in Minnesota. Each structure matches different ownership and expansion goals. The right choice depends on how many owners you have and where you plan to do business.
- Single-member LLC: Owned and operated by one person. Offers liability protection with simplified management and tax reporting.
- Multi-member LLC: Owned by two or more members. Allows shared ownership, defined profit distribution, and collaborative decision-making.
- Foreign LLC: An LLC formed in another state that registers to do business in Minnesota. Required if you expand operations into the state.
How much does it cost to start and run an LLC in Minnesota
Minnesota is one of the higher-cost states to form an LLC. Be sure to account for the expenses below when budgeting to keep costs in check.
- Articles of Organization: $155 if filed online or in person, $135 if filed by mail
- Name reservation (optional): $55 online or $35 by mail for 12 months
- Assumed Name/DBA (optional): $50 online or in person, $30 by mail
- Registered agent service (optional): Typically $50–$150 per year
- Annual renewal: No fee, but you must file an annual renewal with the Minnesota Secretary of State
- Annual reinstatement (if applicable): $25 by mail, $45 online or in-person
- Business licenses and permits: Costs vary by industry and city
- Taxes: No separate state LLC tax, but federal income tax and applicable state employer or sales taxes may apply
In most cases, you can expect to spend between $135 and $450 to start your Minnesota LLC.
What happens after your LLC is up and running
Your Minnesota LLC is officially formed—congratulations! Take a moment to celebrate, then complete the tasks below before opening your doors to stay compliant.
Open a business bank account
Opening a business bank account for your Minnesota limited liability company keeps personal and business finances distinct. This supports liability protection, simplifies tax preparation, and builds trust with customers and lenders. Most banks require:
- Your business address
- Filed Articles of Organization
- Your EIN from the IRS
- Your operating agreement
- Valid photo ID for all account holders
- An initial deposit
File for permits and required business licenses
License requirements depend on your industry and location. Minnesota does not issue a general statewide business license, but certain professions and cities do. If you’re unsure what applies to your LLC:
- Check with the Minnesota Department of Employment and Economic Development
- Visit the Minnesota eLicensing website
- Contact your local city or county office
- Confirm whether your industry requires federal licensure or permits
File Minnesota annual renewal
Minnesota LLCs must file an annual renewal with the Minnesota Secretary of State every year by December 31. There is no filing fee, but you must confirm or update your registered office address and other business details through the Secretary of State’s online portal.
Failure to file an annual renewal can result in the administrative dissolution of your LLC. This requirement is separate from federal and state tax filings and continues as long as your LLC remains active.
Other things to consider for your Minnesota LLC
You’re not done just yet! Below are a few more things you should know about running an LLC in Minnesota.
Get a Certificate of Good Standing
A Certificate of Good Standing is an official document from the Minnesota Secretary of State confirming your LLC is active and compliant. You may need it when applying for loans, opening certain bank accounts, registering as a foreign LLC in another state, or entering into major contracts or real estate transactions.
LLCs can request a Certificate of Good Standing through the Minnesota Secretary of State. It costs $15 online or $5 by mail. Most online orders are processed within 10-15 minutes.
Minnesota Tax ID Number
In addition to your federal EIN, your LLC may need a Minnesota Tax ID from the Minnesota Department of Revenue. Registration is required if you:
- Collect sales tax
- Hire employees and withhold state income tax
- Owe Minnesota business taxes.
It may not be required for a single-member LLC with no employees and no sales tax collection. Learn more about filing taxes for your LLC here.
When it's a good idea to start an LLC in Minnesota
Forming an LLC in Minnesota can be the right move if:
- You want personal liability protection: An LLC separates your personal assets from your business obligations, which is valuable in Minnesota’s active small business environment.
- You’re launching in a growing market: Industries like healthcare in Rochester, tech in Minneapolis, and manufacturing across the state offer strong opportunities.
- You want flexible taxation: Minnesota LLCs benefit from pass-through taxation while avoiding a separate state LLC tax.
- You plan to hire employees or sign contracts: An LLC structure builds credibility with customers, vendors, and lenders.
- You want a simple annual requirement: Minnesota requires a no-fee annual renewal, making compliance manageable.
Ready to take the leap? Make your dream venture a reality with less hassle. GoDaddy Airo helps entrepreneurs set up LLCs for free!
LLC Registration
Our trusted experts who know LLC formation inside out will give you step-by-step guidance through the process.
FAQ
Do I have to renew my LLC every year in Minnesota?
Yes. Minnesota requires LLCs to file an annual renewal with the Minnesota Secretary of State every year by December 31. If you fail to file, your LLC can be administratively dissolved. Note that this requirement is separate from filing federal or state taxes.
Can a non-US citizen start an LLC in Minnesota?
Yes, a non-US citizen can form a Minnesota LLC. There is no citizenship or residency requirement to own an LLC in the state. However, you must appoint a registered agent with a physical address in Minnesota and comply with federal tax and reporting requirements.
Can I convert my sole proprietorship to a Minnesota LLC?
Yes. To convert a sole proprietorship into a Minnesota LLC, you’ll need to form a new LLC by filing Articles of Organization with the Minnesota Secretary of State. After approval, you can transfer business assets, update contracts, and notify customers and vendors of the new structure.
