1. Minnesota LLC Overview

If you live or operate a business in Minnesota, forming a local LLC is required. Minnesota has slightly higher state income taxes, but offsets this with free ongoing compliance.

  • Free annual renewal — You must file every year, but there is no state fee
  • Reasonable formation fee — $155 online ($135 by mail)
  • No franchise tax — Standard LLCs don't pay a state franchise tax
  • Graduated income tax — 5.35% to 9.85% on personal income

2. Minnesota LLC Requirements

  • Name must contain "Limited Liability Company," "LLC," or "L.L.C."
  • Appoint a registered agent with a Minnesota physical address
  • File Articles of Organization with the Secretary of State ($155 online)
  • File an Annual Renewal by December 31 each year ($0)

3. Minnesota LLC Costs and Fees (2026)

Cost Item Amount Notes
Articles of Organization$155Online fee ($135 by mail)
Annual Renewal$0Mandatory filing by Dec 31
Registered Agent$50–$150/yearRequired MN physical address
EINFreeApply at IRS.gov
Operating Agreement$0–$1,000Recommended, not legally required

4. How to Start a Minnesota LLC (Step by Step)

  1. 1 Choose your LLC name (must include "Limited Liability Company," "LLC," or "L.L.C.")
  2. 2 Appoint a registered agent with a Minnesota physical address
  3. 3 File Articles of Organization online with the MN Secretary of State ($155)
  4. 4 Obtain an EIN from the IRS (free at IRS.gov)
  5. 5 Draft an Operating Agreement (not filed, but highly recommended)
  6. 6 Register with the MN Department of Revenue for applicable taxes
  7. 7 File Annual Renewal by December 31 each year ($0)
  8. 8 Open a business bank account

5. Minnesota Annual Renewal

Minnesota LLCs must file an "Annual Renewal" each year. This is a simple update of your business contact information.

  • Due Date: December 31.
  • Fee: $0.
Don't Skip the Free Renewal

Even though the Annual Renewal is free, it is legally mandatory. If you fail to file by December 31, the Secretary of State will statutorily dissolve your LLC, causing you to lose your limited liability protection.

6. Minnesota LLC Taxes (2026)

  • State income tax — 5.35% to 9.85% graduated rate on pass-through profits
  • Federal income tax — Pass-through to personal return
  • Self-employment tax — 15.3% on net earnings
  • Sales tax — 6.875% state base rate + local additions (typically around 8% combined in the Twin Cities)

7. Best For / Not Best For

Best For

  • Entrepreneurs living and operating in Minnesota
  • Businesses operating in the Twin Cities metro area
  • Founders wanting a free annual reporting process

Not Best For

  • Out-of-state owners without Minnesota nexus
  • Founders seeking a state with low personal income tax rates