Minnesota LLC: Everything You Need to Know
A Minnesota LLC is treated the same as a corporation. Whether you intend to operate a single-member LLC or a limited liability partnership, your company will be subject to certain federal income tax requirements and classifications. 3 min read
A Minnesota LLC is treated the same as a corporation. Whether you intend to operate a single-member LLC or a limited liability partnership, your company will be subject to certain federal income tax requirements and classifications. These requirements will mainly depend on the type of taxation you choose for your company. Different options will come with a different set of responsibilities.
Choosing a Name for Your LLC
Choosing a name for your company is an important first step in forming your new business and should be completed as early in the process as possible to avoid any naming issues down the road. Minnesota state law requires you to meet a few specific requirements when naming your LLC company. These requirements include that your name contains one of the following:
- "Limited Liability Company"
Additionally, the state requires that your company's name be easily distinguishable from the names of any other business name currently on file with the office of the Secretary of State in Minnesota. This can easily be done by running a search against the Minnesota Secretary of State's business name database.
There are certain words that may not be used in your company name unless you complete additional paperwork. These words may also require you to be licensed in a particular field before you can do business in the state of Minnesota. Some of these restricted words and vocations include, but are not limited to:
In addition, there are certain words that are completely prohibited from being used in your company name. These are words that might cause somebody to confuse the name of your business with an official government agency, such as:
- Secret Service
Once you find a name that works for your company and is easily distinguishable from other companies in the state, you can reserve it for up to 12 months. This can be done by filing a Name Reservation request with the Minnesota Secretary of State's Business and Lien department. Your Name Reservation request can be filed online or via mail. To file online or in person, there will be a $55 filing fee. The fee for filing via mail, however, is only $35.
You'll also want to make sure that you reserve a domain name after you determine that your intended company name is available. You should do this even if you don't plan on launching a website right away to prevent somebody else from acquiring your intended domain name before you do. Additionally, consider possible email addresses to be associated with your business while you're in the process of choosing a name.
Filing Articles of Organization
Your Minnesota LLC will be officially recognized after you file your Articles of Organization, otherwise known as Articles of Incorporation, with the office of the Secretary of State. There are a few key items that must be included in your Articles of Organization, such as:
- The company's name
- The company's address
- The purpose of your business
- The name and address of your registered agent
- The intended duration of your company
- The name and address of at least one of the company's organizers
Your Articles of Organization can be filed online, in person, or via mail. To file online or in person, there will be a $155 filing fee. Filing by mail, however, requires a $135 filing fee. Once you've filed your Articles of Organization, the normal processing is between two and five business days. Filing online, however, normally gets your paperwork processed within 24 hours, which is why online filing costs $20 more than filing by mail.
Appointing a Registered Agent
In the state of Minnesota, LLCs are required to have a registered agent. This agent can be either an individual or another company that agrees to facilitate legal correspondence on your company's behalf. This correspondence may include, but is not limited to, things like service of process of legal action in the event that your company is sued and required state filings.
Your registered agent is required to be one of the following:
- A Minnesota resident
- Another Minnesota business
- A foreign business authorized to operate in Minnesota
Additionally, your company is not able to act as its own registered agent. Finally, your registered agent is required to maintain a physical street address located within the state.
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