How Much Does an LLC Cost in Minnesota (Pricing Breakdown)
Starting an LLC in Minnesota means filing legal paperwork with the state and paying the required fees upfront. It's not complicated, but getting the details wrong can slow everything down.
As a Mergers and Acquisitions specialist with a Master's degree in tax law, I helped 20+ businesses and individuals form LLCs and build joint organizations in Minnesota last year alone.
Working alongside other business experts in the state, we've put together a full breakdown of what it costs to start a Minnesota LLC — including the upfront fees and the ongoing expenses you'll run into once you're up and running.
One thing I've seen trip up a lot of first-time founders: skipping a professional LLC company in Minnesota to save money, only to hit errors that delay the start of your Minnesota LLC by weeks. It's rarely worth it.
Quick Summary
- An LLC in Minnesota costs $135 to file the Articles of Organization by mail and $155 if done online or in person.
- Once your LLC has been approved, additional expenses you may have to shoulder include a registered agent service, licenses and permits, taxes, and other legal documentations.
- LLC owners opting for corporate tax status face a 9.8% state and 21% federal corporate tax rate, according to the IRS and Minnesota Department of Revenue.
- A Minnesota LLC offers pass-through taxation and liability protection, making it the most popular business structure for small business owners in the state.
Cost to Start an LLC in Minnesota
Before your LLC can operate in Minnesota, there are mandatory fees you'll need to pay — plus a handful of optional costs worth knowing about.
1. LLC Filing Fee ($135/Mail - $155/Online - Mandatory)
The state filing fee for a domestic Minnesota LLC is $135 by mail and $155 if you file in person or online [1]. That covers submitting your Articles of Organization and getting your business officially registered with the state.
Standard processing runs 1 to 4 weeks. I've used the expedited option myself — it cuts that down to 1–5 business days for a $20 fee. In-person expedited filings are processed same-day; online expedited submissions take 3–5 business days.
Learn more about how long does it take to process an LLC in Minnesota.
2. Registered Agent Fee ($80-$300 – Optional)
Minnesota requires every LLC to have a registered agent — someone available during regular business hours with a physical address in the state to receive legal and official documents.
You can act as your own registered agent in Minnesota, or hire a registered agent service for between $80 and $300 per year. If you're running the business from home and don't want your address on public record, a paid service is worth considering.
3. Name Reservation Fee ($35/Mail - $55/Online - Optional)
If you're not ready to file yet but want to lock in your business name, a Name Reservation form costs $35 by mail or $55 online and in person. The state holds the name for up to 12 months, and you can renew for another 12 months at the same price.
Before I file a name reservation for any client, I always confirm the name is available and that it meets Minnesota's naming rules. It saves headaches later.
Learn how to rename an LLC in Minnesota.
Expenses Following the Approval of Your LLC
Once your LLC is approved, here are the additional costs you'll likely run into:
1. Business License (Depending on the Line of Business - Mandatory)
Minnesota doesn't require a general business license at the state level. But depending on your industry and location, you may need specific licenses or permits to operate legally.
You can search for what applies to your business through the Minnesota Department of Employment and Economic Development's License Minnesota portal.
One client of mine ran a boat rental operation — they needed a Lake Service Provider Permit and Certification, which came out to $50. I always recommend confirming your license requirements before you open for business. The compliance penalties aren't worth it.
2. LLC Taxes (Depending on Income Bracket - Mandatory)
By default, single and multi-member LLCs are taxed as pass-through entities in Minnesota. That means business income flows through to your personal return and gets taxed at the state individual income tax rate — anywhere from 5.35% to 9.85% depending on your bracket.
On top of that, you'll owe a federal self-employment tax of 15.3% (12.4% for Social Security, 2.9% for Medicare).
If you elect corporate taxation instead, you're looking at Minnesota's 9.8% corporate tax rate plus the 21% federal corporate rate, according to the Minnesota Department of Revenue and the IRS. Most single-member LLCs stick with pass-through status — it's simpler and usually cheaper.
3. Annual Renewal ($0 - Mandatory)
Every Minnesota LLC must file an Annual Renewal with the Secretary of State to stay active. The good news: there's no filing fee as long as you submit it by December 31st each year, starting the year after you form your LLC.
Miss that deadline, and the state can dissolve your company. Reinstating it costs $25 by mail or $45 online and in person. Set a calendar reminder — it's a free filing that's very easy to forget.
4. Operating Agreement ($100 - $200 - Optional, but Recommended)
When creating a Minnesota LLC, an operating agreement is a valuable document, since it
- Set expectations for how members will govern the company
- Provide guidelines and standards for resolving disputes
- Modify the distribution of gains and losses
Without one, your LLC defaults to Minnesota's state LLC statutes — which may not reflect how you actually want to run things.
For clients watching their budget, I point them toward operating agreement templates from reputable LLC formation services. You're typically looking at $100–$200, which beats paying an attorney by a wide margin.
5. Employer Identification Number ($0 - Optional but Recommended)
Every Minnesota business needs an EIN to file federal taxes. You can get one directly from the IRS for free — just submit the relevant documents online. Or, if you'd rather hand it off, most LLC formation services will handle EIN registration for a fee of $50–$100.
Honestly, the IRS application takes about 10 minutes online. I'd do it yourself.
"An Employer Identification Number (EIN), also known as a Federal Employer Identification Number (FEIN), is required for filing income taxes, opening an LLC bank account, and hiring employees, if necessary."
- Jon Morgan, CEO, Co-Founder & Editor-in-Chief of Venture Smarter
6. Certificate Of Assumed Name ($30/Mail - $50/Online or In Person - Optional)
An assumed name — also called a DBA — lets your Minnesota LLC operate under a name other than its legal registered name. Registering one costs $30 by mail or $50 online and in person.
I filed a DBA for a client last year, and once the Secretary of State approved it, they received a Certificate of Assumed Name allowing them to legally do business in Minnesota under that name. If you're branding under anything other than your LLC's official name, you'll need this.
7. Certified Document Copies ($8/Mail - $18/Online - Optional)
The Minnesota Secretary of State charges $8 for certified document copies ordered by mail, or $18 for online orders. These are official duplicates of your business documents, verified and sealed by the state.
You'll need certified copies for things like opening a business bank account, securing a line of credit, or registering your company in another state. They're also worth keeping on file for internal records.
8. Certificate Of Good Standing ($5/Mail - $15/Online - Optional)
A Certificate of Good Standing costs $5 by mail or $15 online. It's a state-issued document that confirms your LLC is legally registered and in compliance in Minnesota.
When clients ask why they'd need one, the short answer is: investors want it, banks often require it for loans, and you'll need it if you plan to expand into other states. It's a cheap document that carries real weight.
9. Business Insurance Premiums ($1-$100 - Optional but Recommended)
If your LLC has employees, Minnesota law requires you to carry workers' compensation insurance through a private insurer. Skip it, and you're looking at fines up to $1,000 per uninsured worker, per week. That adds up fast.
The cost depends on your insurer and the risk level of your employees' roles. Low-risk workers typically run about $1 per $100 of payroll; high-risk roles can run $25 per $100 or more on average.
FAQs
Does a Minnesota LLC Pay Sales Taxes?
A Minnesota LLC pays sales taxes depending on income. The state sales tax rate is 6.875%. Although this is the standard tax rate, the amount may be more because certain municipal taxes are levied at the district levels.
Is There A Penalty For Paying My Taxes Late In Minnesota?
There is a penalty for paying your taxes late in Minnesota. Late payments and filings are penalized with a fine of 6% and 5% of the taxes due.
Can You Pay Minnesota State Taxes with a Credit Card?
You can pay Minnesota state taxes with a credit card. The state accepts Visa, American Express, Discover, and MasterCard.
References:
- https://www.sos.state.mn.us/business-liens/business-forms-fees/business-filing-certification-fee-schedule/
