Start an LLC in Minnesota with these Five Easy Steps
Step 1. Name Your Minnesota LLC
Step 2. Choose a Registered Agent\s
Step 3. File the Articles of Organization\s
Step 4. Create an Operating Agreement
Step 5. Get an EIN
Starting an LLC in Minnesota is Easy
To form a Minnesota LLC you’ll need to submit the Articles of Organization with the Minnesota Secretary of State, which costs $155 online. You may apply online, via mail, or in-person. The Articles of Organization is the legal document that legally forms your Minnesota Limited Liability Company.
STEP 1: Name your Minnesota LLC
Choosing a business name is the first and most crucial stage of creating a Minnesota LLC. Be careful to select a name that conforms with Minnesota naming rules and is readily searchable by prospective customers.
1. Follow the naming guidelines:
Your name must contain the words “limited liability company” or one of its acronyms (LLC or L.L.C.) (LLC or L.L.C.).
Your name cannot contain phrases that might mistake your LLC with a government entity (FBI, Treasury, State Department, etc). (FBI, Treasury, State Department, etc.).
Restricted terms (e.g. Bank, Attorney, University) may need extra documentation and a licensed professional, such as a doctor or lawyer, to be part of your LLC.
Your name must be different from any other Minnesota limited liability company, corporation, partnership, limited liability partnership, or limited partnership.
2. Is the name accessible in Minnesota? Make sure the name you want isn’t already used by completing a Business Filings Search on the Minnesota Secretary of State’s website.
3. Is the URL available? We suggest that you check online to see whether your company name is accessible as a web domain. Even if you don’t intend to construct a company website today, you may want to acquire the URL in order to prevent others from gaining it
STEP 2: Choose a Minnesota LLC Registered Agent
You are needed to designate a Minnesota registered agent for your LLC.
What is a registered agent? A registered agent is a person or corporate organization responsible for receiving vital tax forms, legal papers, notification of litigation, and official government communication on behalf of your firm. Think of your registered agent as your business’s point of contact with the state.
Who may be a registered agent? a Registered Agent must be a resident of Minnesota or an organization, such as a registered agent service, allowed to conduct business in Minnesota. You may elect a person inside the firm including yourself.
STEP 3: File the Minnesota LLC Articles of Organization
To register a Minnesota LLC, you will need to submit the Articles of Organization with the Secretary of State. Apply online, via mail, or in person.
STEP 4: Draft an Operating Agreement for a Minnesota LLC.
An operating agreement is not necessary for a Minnesota LLC, but it is recommended.
What exactly is an operating agreement? An operating agreement is a legal document that outlines an LLC’s ownership and running processes.
Why are operating agreements necessary? A detailed operating agreement guarantees that all firm owners are on the same page and decreases the likelihood of future disagreement.
Step 5: Obtain a Minnesota LLC EIN.
What exactly is an EIN? EIN is an acronym that stands for Employer Identification Number. EINs are nine-digit numbers provided by the Internal Revenue Service (IRS) to companies to assist them be identified for tax reasons. It is basically a business’s Social Security Number.
An EIN is also known as a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN) (FTIN).
Why do I need an EIN? An EIN is necessary in order to:
Establish a business bank account.
Filing and managing federal and state income taxes
Employ people
What if my single proprietorship already has an EIN? When transitioning a sole proprietorship to an LLC, the IRS demands a new EIN.
Where can I get an EIN? The IRS will provide you an EIN for free. Obtaining an EIN is a simple procedure that may be completed online or by mail.
