How to start an LLC in Minnesota
Starting an LLC in Minnesota involves careful planning, from choosing a unique business name and registering with the Minnesota Secretary of State to filing necessary documents and meeting ongoing compliance requirements.
This guide will help you navigate the process step-by-step, ensuring your new business is set up for success in the North Star State.
Ready to start your business? Plans starting at $297 + state fees.
Benefits of starting your business in Minnesota
Starting a Limited Liability Company (LLC) in Minnesota offers numerous benefits that make it an attractive option for entrepreneurs and small business owners.
One of the primary advantages is the limited liability protection, which ensures that personal assets are generally protected from business debts and liabilities.
Minnesota also has a fairly straightforward and efficient process for forming an LLC, which includes flexible management structures that can accommodate various business needs.
Additionally, the state provides favorable tax treatment, allowing LLCs to benefit from pass-through taxation, where profits are taxed only at the individual level, thus avoiding double taxation.
The business-friendly environment in Minnesota, coupled with a variety of resources and support systems for startups, further enhances the appeal of establishing an LLC in the state. This combination of legal protection, ease of formation, tax advantages, and supportive infrastructure makes Minnesota a favorable location for starting an LLC.
Pros
- Limited liability for owners
- Flexible management structure
- Tax advantages and incentives
Cons
- Time-consuming registration process.
- Requires registered agent in state.
- High ongoing state compliance fees.
How to start your business in Minnesota
Starting an LLC in Minnesota involves several key steps. First, choose a unique name for your LLC that complies with Minnesota’s naming requirements, ensuring it’s distinguishable from other registered entities.
Next, file the Articles of Organization with the Minnesota Secretary of State either online or via mail, along with the required filing fee.
It’s also advisable to create an Operating Agreement, which, while not mandatory, outlines the ownership and operational procedures of your LLC.
Obtain an EIN from the IRS for tax purposes, especially if your LLC has multiple members or employees.
Additionally, depending on the nature of your business, you may need to apply for local and state business licenses or permits. Lastly, ensure you meet Minnesota’s ongoing compliance requirements, such as filing an annual renewal with the Secretary of State to keep your LLC in good standing.
Choose and reserve a name
It's wise to check your LLC name against similar businesses in your area. We include a name check with our formation services and can reserve names for you.
Pick a Registered Agent (RA)
An RA physically receives your LLC's legal notices during normal business hours. Most states require this, including Minnesota—but the good news is, we can do it for you.
File a Certificate of Formation
This document contains basic details about your LLC, including its name and address. When we file this for you, it's typically sent to the Minnesota Secretary of State.
Preparing an Operating Agreement
This outlines your LLC's rules for everything from decision-making to distributing profits. Though it isn't required in your state, our templates make it easy to prepare one and define your rights.
Get an Employer ID Number (EIN)
An EIN is like a Social Security number for your LLC, and is needed for banking, taxes, and hiring. Minnesota LLCs may also have additional post-formation tax and regulatory requirements.
Determine licenses needed
You'll also need to apply for any specific permits or licenses that may be required for compliance, although it's wise to wait until your LLC's formation documents are approved.
How doola Can Assist
doola simplifies the incorporation and setup process for your company, ensuring you’re ready to charge customers, hire your team, and raise funds as quickly as possible.
Fill out your company details in the doola form in less than 10 minutes. Then, we’ll incorporate your company in any of the 50 US states, get your IRS tax ID (EIN) for you, and file your 83(b) tax election if needed.
doola can also help you open a bank account and start accepting payments even before the IRS assigns your tax ID.
doola founders also gain access to exclusive discounts at leading software partners, one-click onboarding with select partners, and free CPA consultations.
The doola Application
It takes less than 10 minutes to fill out the details of your new company. You’ll choose your company structure (C corporation, limited liability company) and pick a company name.
Our instant company name checker will let you know if it’s available before you submit your application. You’ll add an address and phone number and review and sign your EIN SS4 letter in one click.
Forming the Company
doola will review your application and file your formation documents in the state within one business day. doola charges $297 for our Starter Plan and your first year of registered agent services (a state compliance requirement), and $297 each year thereafter to maintain your registered agent.
You can also opt for our Total Compliance plan.
Getting Your IRS Tax ID (EIN)
After your formation in the state is complete, doola will file for your company’s IRS tax ID. Founders who provide a US Social Security number, US address, and US phone are eligible for expedited processing. All other users will receive standard processing.
For standard orders, doola will fax your form SS4 to the IRS and then call the IRS to retrieve the EIN for you to expedite the process if we can, using real-time IRS data to determine when your filing is likely to be available.
Filing Your 83(b) Tax Election
Many startup founders choose to file an 83(b) tax election to potentially save on future personal taxes. doola can file and mail your 83(b) tax election in one click for both US and non-US founders — no trip to the post office required.
We’ll file it using USPS Certified Mail with tracking, and you’ll get a copy of your signed 83(b) election and proof of filing in your Dashboard.
Partner Perks and Discounts
doola partners with a range of third-party tools to offer special pricing or access to founders. We offer discounts on engineering, tax and finance, compliance, and operations tools, including Amazon Web Services.
doola also partners with Mercury to provide faster, automatic onboarding using your doola company information so you can get ready to bank and fundraise even faster.
Founders may also access discounts on other doola products, including up to one year of free credits toward payment processing.
Read our guides for startup founders, or learn more about doola and how we can help you set up your new business quickly and easily.
Turn your entrepreneurship dream into reality today!
We do our best to provide accurate and up to date information, however the information provided here are just guidelines. Please speak with a tax and compliance professional in your state.
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Starter
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Formation & EIN filings, RA service, Operating Agreement, and regular compliance reminders.
State fee not included.
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Total Compliance
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Formation with Expedited processing, Annual State filings, IRS Tax filings, a dedicated Account Manager and a free CPA consultation.
State fee not included.
Each state charges a one-time formation fee. Your state fee will vary depending on the state you form in. Not sure which state to choose? Take our quiz →
Getting started with doola is easy
See what people say about doola on
Y Combinator
YC S20's @doolaHQ is the one-stop-shop for US and non-US residents to launch a US LLC, DAO LLC, and C Corp — and today they're sharing their company formation API with the world, to enable businesses big and small to create a company from the command line.
Ankur Nagpal
You can programmatically create a company or DAO using their API Programmatically create a business, get an EIN, get a US bank account, process payments, file taxes & more Perfect for any “business in a box” startup
Jose Rosado
Thanks to the @StartPackHQ for helping me with this process. Check them out 👇 https://rosa.do/startpack
Mary Ann Azevedo
.@doolaHQ, which describes itself as a "Business in a box" for SMBs, has raised $3M in a seed round of funding. doola provides company formation, an EIN, a U.S. address and bank account, access to U.S. payments and a tax consultation, among other things.
Ankur Nagpal
The good news: You don't have to be a US resident to start a company in America If you want to start a tech startup, incorporate a C-Corp If you want to freelance or consult with your own business, incorporate a LLC This should be straightforward - use @doolaHQ & you're good
Alex Lieberman
I haven't started a business in 8 years. I had to rediscover the mission critical tools for starting & running a new venture. Here's the stack:LLC registration: @doolaHQ, Trademark filing: @JoshGerben, Domain registration: @GoDaddy, Website: @Shopify, Banking: @mercury, Payments: @stripe, Files: @googledrive, Internal email: @gmail, Extern email: @Mailchimp, Go-to Market: @Kickstarter, Task Management: @asana
Syndicate
8/ We've also teamed with @doolaHQ to enable DAOs on Syndicate to get legal entities and EINs, open fiat bank accounts, submit compliance filings, and issue K-1 tax forms easily and affordably. This is just the beginning of new capabilities we’ll be bringing to DAOs, together.
Elizabeth Yin
Congrats to @HustleFundVC portfolio company Doola (formerly StartPack) on their new round! Thank you for letting us invest
Will Papper
We use @doolahq at @SyndicateDAO
Y Combinator
YC S20's @doolaHQ is the one-stop-shop for US and non-US residents to launch a US LLC, DAO LLC, and C Corp — and today they're sharing their company formation API with the world, to enable businesses big and small to create a company from the command line.
Ankur Nagpal
You can programmatically create a company or DAO using their API Programmatically create a business, get an EIN, get a US bank account, process payments, file taxes & more Perfect for any “business in a box” startup
Jose Rosado
Thanks to the @StartPackHQ for helping me with this process. Check them out 👇https://rosa.do/startpack
Mary Ann Azevedo
.@doolaHQ, which describes itself as a "Business in a box" for SMBs, has raised $3M in a seed round of funding. doola provides company formation, an EIN, a U.S. address and bank account, access to U.S. payments and a tax consultation, among other things.
Ankur Nagpal
The good news: You don't have to be a US resident to start a company in America. If you want to start a tech startup, incorporate a C-Corp If you want to freelance or consult with your own business, incorporate a LLC This should be straightforward - use @doolaHQ & you're good
Alex Lieberman
I haven't started a business in 8 years. I had to rediscover the mission critical tools for starting & running a new venture. Here's the stack:LLC registration: @doolaHQ, Trademark filing: @JoshGerben, Domain registration: @GoDaddy, Website: @Shopify, Banking: @mercury, Payments: @stripe, Files: @googledrive, Internal email: @gmail, Extern email: @Mailchimp, Go-to Market: @Kickstarter, Task Management: @asana
Syndicate
8/ We've also teamed with @doolaHQ to enable DAOs on Syndicate to get legal entities and EINs, open fiat bank accounts, submit compliance filings, and issue K-1 tax forms easily and affordably. This is just the beginning of new capabilities we’ll be bringing to DAOs, together.
Elizabeth Yin
Congrats to @HustleFundVC portfolio company Doola (formerly StartPack) on their new round! Thank you for letting us invest
Will Papper
We use @doolahq at @SyndicateDAO
Hustle Fund
Congrats team @doolaHQ! Ya'll ship so well and are continue to make company formation a snap. Appreciate being on this journey with you!
dharmesh
Love the work that @DoolaHQ is doing. Aligns with my philosophy of addressing the "talent is evenly distributed, opportunity is not" issue. More startups everywhere = good for everyone.
Aditya Mohanty
Was blown away seeing how easy @doolaHQ makes it to start an entity in the US, completely online. If you're planning to build from India for the world, definitely watch out for this team 🔥
Y Combinator
YC S20’s @doolaHQ is the one-stop-shop for U.S. and non-U.S. residents to launch a U.S. LLC and C Corp — and today they're launching full support for DAO LLCs, bridging web3 and web2:
Sahil Bloom
💥Investment Announcement💥 Excited to invest in @doolaHQ! A business-in-a-box platform enabling founders from anywhere in the world to start their dream US business. Proud to be an investing alongside @NexusVP @ycombinator @dharmesh @ankurnagpal @anothercohen, and more!
Alex Lieberman
I love businesses that go long growth of entrepreneurship. @tryramp for startup spending, @doola for business formation, @carta for equity management and @Rippling for HR & IT
Eric Bahn
I recommend bookmarking this if you start to get serious about angel investing. LLC structures have some great benefits, thank you @arjunmahadevan for the awesome explainer here!
Rohun
you should be able to "start a business" without having to worry about LLCs, bank accounts, taxes, and bookkeeping. my friend, @arjunmahadevan is building this with @doolaHQ here's why it's a great biz and you should use them for the next LLC you form.
Hustle Fund
Congrats team @doolaHQ! Ya'll ship so well and are continue to make company formation a snap. Appreciate being on this journey with you!
dharmesh
Love the work that @DoolaHQ is doing. Aligns with my philosophy of addressing the "talent is evenly distributed, opportunity is not" issue. More startups everywhere = good for everyone.
Aditya Mohanty
Was blown away seeing how easy @doolaHQ makes it to start an entity in the US, completely online. If you're planning to build from India for the world, definitely watch out for this team 🔥
Y Combinator
YC S20’s @doolaHQ is the one-stop-shop for U.S. and non-U.S. residents to launch a U.S. LLC and C Corp — and today they're launching full support for DAO LLCs, bridging web3 and web2:
Sahil Bloom
💥Investment Announcement💥 Excited to invest in @doolaHQ! A business-in-a-box platform enabling founders from anywhere in the world to start their dream US business. Proud to be an investing alongside @NexusVP @ycombinator @dharmesh @ankurnagpal @anothercohen, and more!
Alex Lieberman
I love businesses that go long growth of entrepreneurship. @tryramp for startup spending, @doola for business formation, @carta for equity management and @Rippling for HR & IT
Eric Bahn
I recommend bookmarking this if you start to get serious about angel investing. LLC structures have some great benefits, thank you @arjunmahadevan for the awesome explainer here!
Rohun
you should be able to "start a business" without having to worry about LLCs, bank accounts, taxes, and bookkeeping. my friend, @arjunmahadevan is building this with @doolaHQ here's why it's a great biz and you should use them for the next LLC you form.
Y Combinator
YC S20's @doolaHQ is the one-stop-shop for US and non-US residents to launch a US LLC, DAO LLC, and C Corp — and today they're sharing their company formation API with the world, to enable businesses big and small to create a company from the command line.
Hustle Fund
Congrats team @doolaHQ! Ya'll ship so well and are continue to make company formation a snap. Appreciate being on this journey with you!
Ankur Nagpal
You can programmatically create a company or DAO using their API Programmatically create a business, get an EIN, get a US bank account, process payments, file taxes & more Perfect for any “business in a box” startup
dharmesh
Love the work that @DoolaHQ is doing. Aligns with my philosophy of addressing the "talent is evenly distributed, opportunity is not" issue. More startups everywhere = good for everyone.
Jose Rosado
Thanks to the @StartPackHQ for helping me with this process.Check them out 👇 https://rosa.do/startpack
Aditya Mohanty
Was blown away seeing how easy @doolaHQ makes it to start an entity in the US, completely online. If you're planning to build from India for the world, definitely watch out for this team 🔥
Mary Ann Azevedo
.@doolaHQ, which describes itself as a "Business in a box" for SMBs, has raised $3M in a seed round of funding. doola provides company formation, an EIN, a U.S. address and bank account, access to U.S. payments and a tax consultation, among other things.
Y Combinator
YC S20’s @doolaHQ is the one-stop-shop for U.S. and non-U.S. residents to launch a U.S. LLC and C Corp — and today they're launching full support for DAO LLCs, bridging web3 and web2:
Ankur Nagpal
The good news: You don't have to be a US resident to start a company in America If you want to start a tech startup, incorporate a C-Corp If you want to freelance or consult with your own business, incorporate a LLC This should be straightforward - use @doolaHQ & you're good
Sahil Bloom
💥Investment Announcement💥 Excited to invest in @doolaHQ! A business-in-a-box platform enabling founders from anywhere in the world to start their dream US business. Proud to be an investing alongside @NexusVP @ycombinator @dharmesh @ankurnagpal @anothercohen, and more!
Alex Lieberman
I haven't started a business in 8 years. I had to rediscover the mission critical tools for starting & running a new venture. Here's the stack:LLC registration: @doolaHQ, Trademark filing: @JoshGerben, Domain registration: @GoDaddy, Website: @Shopify, Banking: @mercury, Payments: @stripe, Files: @googledrive, Internal email: @gmail, Extern email: @Mailchimp, Go-to Market: @Kickstarter, Task Management: @asana
Alex Lieberman
I love businesses that go long growth of entrepreneurship. @tryramp for startup spending, @doola for business formation, @carta for equity management and @Rippling for HR & IT
Syndicate
8/ We've also teamed with @doolaHQ to enable DAOs on Syndicate to get legal entities and EINs, open fiat bank accounts, submit compliance filings, and issue K-1 tax forms easily and affordably.This is just the beginning of new capabilities we’ll be bringing to DAOs, together.
Eric Bahn
I recommend bookmarking this if you start to get serious about angel investing. LLC structures have some great benefits, thank you @arjunmahadevan for the awesome explainer here!
Elizabeth Yin
Congrats to @HustleFundVC portfolio company Doola (formerly StartPack) on their new round! Thank you for letting us invest
Rohun
you should be able to "start a business" without having to worry about LLCs, bank accounts, taxes, and bookkeeping. my friend, @arjunmahadevan is building this with @doolaHQ here's why it's a great biz and you should use them for the next LLC you form.
Will Papper
We use @doolahq at @SyndicateDAO
Learn how to start an LLC
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Why should I get an LLC and a business bank account?
Forming an LLC and opening a business bank account are essential steps to protect your personal assets and streamline your finances. An LLC limits your personal liability in case of legal or financial issues, while a business bank account helps you separate personal and business finances, making tax preparation easier and ensuring a more professional image for your business.
Do I need to be a US citizen to work with doola?
No, you don’t! We work with entrepreneurs from around the world to get their businesses incorporated. Don’t take our word for it, though; check out our TrustPilot Page to hear what people globally have to say about doola.
What is an LLC (Limited Liability Company)?
A limited liability company is a formal business structure (created as per state law) where the business is legally distinct from the owner(s). It may have a single owner in the case of a Single-Member LLC or multiple owners in the case of a Multi-Member LLC.
An LLC combines the perks of a corporation (protection against personal liability) and a partnership (pass-through taxation). Since the business has a separate legal existence, the members are not personally liable for the debts and obligations of the Company.
State laws stipulate how LLCs should be incorporated. Some states require specific documents, such as the articles of organization, membership agreement, etc., to be filed with the authorities.
Learn more about LLCs and how they work in FREE ebook.
What information do you need from me to get started?
We don't need any documents to get started. We just need a few pieces of info from you:
- Your Company Name
- Your Personal Address
- Phone Number and Email (For contact purposes)
Later in the process, you'll need a passport to set up your bank account.
What is an EIN?
An Employer Identification Number is the tax identification number for your organization and a requirement of many banks or institutions (such as the IRS) to carry out business in the US. Once your EIN is acquired, you can apply for business bank accounts and payment gateways. Learn more about the full process.
What is an ITIN?
An Individual Tax Identification Number (ITIN) can be used as an alternative for a Social Security Number (SSN) in some cases and is not a requirement in most cases. However, you will be required to have one if you wish to apply for a PayPal account or certain bank accounts. We walk you through how this process looks like in our guide!
Still have a question?
Schedule a free consultation with an expert from doola, today.
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