8 Steps to Setting Up an LLC in Minnesota
1. Choose a business name.
The first step in forming your LLC is choosing a name for your business. Your LLC name must include the phrase “Limited Liability Company” or “L.L.C.” It can also not be the same as another business name already registered with the state of Minnesota. Once you’ve chosen your business name, you should check to see if it’s available by doing a business name search on the Minnesota Secretary of State website.
2. File your Articles of Organization
Once you’ve chosen a name for your LLC, you need to file your Articles of Organization with the Minnesota Secretary of State. Your Articles of Organization must include:
- The name and address of your LLC
- The names and addresses of the LLC’s initial directors
- The LLC’s purpose
- The LLC’s duration
- The name and address of your LLC’s registered agent
You can file your Articles of Organization online, by mail, or in person at the Minnesota Secretary of State office. The filing fee is $155.
3. Draft your Operating Agreement
An Operating Agreement is not required in Minnesota, but it’s a good idea to have one. This document outlines the ownership and operating procedures of your LLC. It will cover things like:
- How decisions will be made
- Who will manage the LLC
- How profits and losses will be distributed among members
- What happens if a member leaves the LLC
4. Get an EIN
You will need an Employer Identification Number (EIN) for your LLC even if you don’t have any employees. You can apply for an EIN online, by fax, or by mail through the IRS website. You will need to have your Articles of Organization handy when you apply as they will ask for information from them. There is no filing fee for getting an EIN.
5. Comply with other business regulations
Depending on what kind of business you are running, there may be other licenses or permits that you need to obtain before you can start operating. For example, if you will be selling food products, you will need to get a food license from the Minnesota Department of Health. If you plan on hiring employees, you will need to register with the Minnesota Unemployment Insurance Program. Contact the Small Business Assistance Office at 651-296-2551 or 1-800-657-3858 for more information about which licenses and permits apply to your business.
6. Open a business bank account
Once you have everything else set up, you’ll need to open a business bank account for your LLC so that you can keep track of your finances separately from your personal finances. This will make tax time much easier as well as help establish your LLC as a separate legal entity. Make sure to bring along your EIN when opening up your account as most banks will require it.
7. File annual reports
All LLCs registered in Minnesota must file an Annual Report each year with the Secretary of State’s office. The report must be filed by March 31st and there is a $50 filing fee. The report requires information such as the names and addresses of all current members as well as any changes that have occurred during the year. You can file online, by mail, or in person.
8 . Get insurance
Depending on what kind of business you are running, there may be certain types of insurance that are required by law or that would simply be a good idea to have. For example, most businesses are required to have workers’ compensation insurance if they have employees. You may also want to consider general liability insurance which could protect you in case someone sues your business. Talk to an insurance agent about what coverage makes sense for your business.