Minnesota is known as the “Land of 10,000 Lakes”, but today the state also serves as an economic focal point for the Midwest region.
Minnesota is known for its innovation, healthcare, agriculture, and education industries. This draws both domestic and foreign entrepreneurs.
If you are an American or a foreign non-resident looking to penetrate the U.S. market, then Minnesota is a friendly and welcoming state to incorporate an LLC.
In this article, we provide you with a step-by-step overview to form an LLC in Minnesota, outlining the essential requirements, estimated costs, and important compliance issues that should be addressed.
🌟 What are the advantages of starting an LLC in Minnesota?
1. Business-Friendly Economy
Minnesota has a diverse and growing economy, with strong sectors in healthcare (home to the largest healthcare systems, Mayo Clinic), financial services, manufacturing, and renewable energy.
In addition to the above, Minnesota is also known for its food production. This coupled with the state’s programs that promote innovation and entrepreneurship makes Minnesota a stronghold for startups
2. Protection of Assets and Finances
Forming an LLC provides liability protection, meaning your personal property such as your house, vehicle, and savings accounts are usually protected if the business you operate is sued or incurs debts.
3. Business Structure is Flexibly Arranged
In an LLC, the management and ownership structures are flexible. You can be a solo entrepreneur or a business partner, and the business can be structured to achieve your objectives.
4. Non US Founders Are Welcome
In Minnesota, foreign individuals can buy and operate LLCs without needing US citizenship or a green card. This is a good starting point for international businesspeople.
✅ Step-By-Step Guide to Forming an LLC in Minnesota
There are several steps to starting an LLC in Minnesota. Set out below is the detailed process for the same.
1. Choosing a Name for Your LLC
Your LLC name needs to be distinct and cannot be similar to the business names that are already registered in Minnesota and also abide by the naming rules of the state.
Requirements:
- Must include “Limited Liability Company,” “LLC,” or “L.L.C.”
- Cannot include words that mislead (e.g. “bank” or “insurance” unless the business is licensed to provide those services).
- Should not closely resemble existing Minnesota businesses.
How to Check Name Availability:
Ensure that your name is not already taken as a business name by using the Minnesota Secretary of State Business Name Search.
Optional: Name Reservation
In case you need time to prepare before filing your LLC, you can hold a specific business name for as long as one year.
- Charges: $55 for online reservations, $35 for mail orders.
💡 Pro Tip: Always secure your domain name first before your social media handles to make your business search easily found.
2. Appoint a Registered Agent
A Registered Agent may be an individual or business that can accept legal documents, tax documents, or any official mail on behalf of your LLC.
Eligibility Criteria:
- Must have a physical street address in Minnesota.
- Must be available during standard business hours.
- Either a person or a commercial registered agent can provide the service, so you may be your own agent if you’re a Minnesota resident.
For global business owners, an address in Minnesota is required to operate. Services such as registered agent authorities are a must, as they provide added security for business registered agents in Minnesota, and all states.
3. File Articles of Organization
This is a legal document that establishes your LLC in the state of Minnesota.
Filing Methods:
- Online: Usually takes the least amount of time.
- By Mail: Slower, but an accepted method.
Information Needed:
- The name of the LLC along with its address
- Registered agent name and address
- The name and address of the organizer(s)
- Identify if your LLC will be member-managed or manager-managed
Fees:
- Online Filing: $155
- Mail Filing: $135
Processing Time:
- Online: Same-day for submissions before 3 p.m. CST
- Mail: 5–10 business days
The LLC will be issued a Certificate of Organization after registration. The certificate serves as proof of registration.
4. Prepare the Operating Agreement
The Operating Agreement describes the LLC’s internal structure. Minnesota does not require an Operating Agreement for LLCs, but it is advisable to have one for legal and business clarity, particularly for multi-member LLCs.
What to Include:
- Details about member ownership, including ownership percentages and capital contributions.
- Voting rights along with decision-making procedures.
- Profit and loss distribution.
- Membership and management roles and responsibilities.
- Strategies for exit, dissolution, and disputes.
🛡️ Why it matters: The absence of an Operating Agreement imposes default Minnesota laws. Such laws may not be suitable for your business and will not provide adequate protection in disputes.
Bizstartz offers tailored agreements for your company, specifically Operating Agreements that are professionally drafted.
5. Acquire an EIN (Employer Identification Number)
The EIN is issued by the IRS. Like a Social Security Number, it is essential for your business for tax filings, banking, hiring, and other activities.
You Need an EIN to:
- Obtain a business bank account
- Apply for business licenses
- Hire employees
- File federal and Minnesota taxes
There is a special process for submitting the application manually using Form SS-4 for non-US residents without an SSN. Bizstartz can get you the EIN with no hassle.
6. Register for State Taxes
You may be required to register for state taxes in Minnesota after forming the LLC and obtaining an EIN, depending on your activities.
Common Registrations:
- Sales and Use Tax for sellers and online businesses
- Employer Withholding Tax for employers
- MinnesotaCare Tax for healthcare businesses
You can register using the Minnesota Department of Revenue e-Services.
7. File Your BOI Report (Corporate Transparency Act)
The Corporate Transparency Act mandates most new and existing LLCs to file the Beneficial Ownership Information Report starting January 1, 2024.
Required Information:
- Legal name of the business
- EIN
- Beneficial owners information (name, address, ID details)
Deadlines:
- LLCs formed in 2024 or later: Submit within 90 days of formation
- LLCs formed before 2024: Deadline is January 1, 2025
Heavy penalties may apply for missing the filing deadline. Bizstartz includes BOI filing in our service packages for complete compliance.
8. Open a U.S. Business Bank Account
A U.S. bank account is essential for conducting business in the United States, especially if you wish to receive payments through Stripe, PayPal, or Amazon.
What You’ll Need:
- Articles of Organization
- EIN confirmation letter from IRS
- Operating Agreement
- Passport or government-issued ID
🌍 Bizstartz helps clients from outside the U.S. to open U.S. business bank accounts remotely.
9. Obtain Licenses and Permits
Depending on your business type and location, you may require additional licenses and permits on the local, state, or federal level.
Examples
- Retail seller’s permit
- Health department permit
- Contractor’s license
- Professional licensing (accounting, real estate, legal)
Use Minnesota’s eLicensing portal to find out what permits you need.
10. Submit Your Annual Renewal
An Annual Renewal is mandatory for every LLC in Minnesota for the renewal of the company’s status, especially to ensure that the company remains in good standing.
Deadline:
- December 31st every year
Fee:
- No charge if submitted on time
Filing past the deadline may lead to the company being administratively dissolved.
You may submit the annual renewal on the Minnesota Secretary of States website under business filings.
💰 Cost Breakdown for Forming an LLC in Minnesota
| Service | Fee |
| Name Reservation (Optional) | $55 |
| Articles of Organization | $155 (online) / $135 (mail) |
| Registered Agent Service | $99–$150/year |
| EIN Application | Free (via IRS) / Included via Bizstartz |
| BOI Filing | Free (Included in Bizstartz packages) |
| Annual Renewal | Free if filed on time |
🌍 Creating a Minnesota LLC as an International Entrepreneur
Forming an LLC in Minnesota does not need a person to be a citizen or a resident of the country which surprises a lot of international entrepreneur
Minimum Requirements:
- Registered Agent with Minnesota address
- Articles of Organization
- EIN which is obtained with the help of Bizstartz
- U.S. business bank account which can be remotely opened with our assistance
- Compliance with BOI reporting
Starting an LLC or a business in USA is very easy with our international assistance package. Working with global entrepreneurs is our specialty.
🚀 Start Your Minnesota LLC with Bizstartz
Bizstartz is committed to assist both local and foreign entrepreneurs with the setting up of a business in the USA. Our packages for forming an LLC offer include:
- Minnesota LLC formation
- EIN (Tax ID) Application
- Registered Agent Service
- BOI Report Filing
- U.S. Business Bank Account Assistance
- Custom Operating Agreement
- Ongoing Compliance Support
👉 Your first choice as a partner in forming a company in USA is Bizstartz and kindly, do not hesitate to reach out to further inquire for help.
📌 Final Thoughts
The business-friendly atmosphere, diversified economy, and LLC formation procedures indeed make Minnesota a great place to do business.
Forming an LLC in Minnesota is a great alternative for international entrepreneurs looking to set up a business a few steps away from their current office or planning to move to the country. It offers immense legal protection along with the flexibility to operate from anywhere in the world.
Looking for professional assistance with your LLC in Minnesota?
While you work on establishing your dream business, let Bizstartz manage the paperwork so you can fully focus.
