Minnesota Taxes

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Minnesota LLC
Tax Registration & Requirements

How to form an LLC in Minnesota
This Quick Start Guide is a brief overview of how to form an LLC in Minnesota.

Detailed Lessons:

5. EIN Number
6. Annual Renewal
7. Business License
8. Taxes ← you are here

 

Minnesota LLC costs:
LLC formation cost: $135 by mail or $155 online (one-time fee)
Annual renewal: $0 (but report must be filed every year)

Need help?
Hire a company to form your Minnesota LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)

(check out Northwest vs LegalZoom)

Note: Our tax lesson is not as step-by-step as our LLC formation lessons, due to the uniqueness and variation among businesses. Taxes are usually not as straightforward as forming an LLC in Minnesota, and therefore, the information below is an overview, and not a comprehensive guide.

You will likely need to hire a tax professional to make sure you meet all your Minnesota state and local tax obligations. We recommend using Thumbtack.

Do it yourself in Minnesota

Overview of Minnesota Taxes
https://mn.gov/deed/business/starting-business/taxes/

State Tax ID Guide
https://mn.gov/deed/business/starting-business/taxes/tax-id-numbers.jsp

Online Registration for Business Taxes
https://www.mndor.state.mn.us/tp/webreg/_/#1

Other Taxes
Depending on your industry, where your business is located, how you are taxed by the IRS, and whether or not you have employees, will determine which additional taxes and forms are due.

Some examples of other taxes and forms due are:

  • Sales and use tax
  • Employer’s withholding tax
  • Partnership and LLC tax
  • Transient room tax
  • Motor vehicle tax
  • Consumer’s use tax
  • Telecommunications tax
  • Utility gross receipts license tax
  • Tobacco tax
  • Property tax
  • Alcohol tax
  • Fuel tax
  • Local taxes
  • And more

You can also contact the Minnesota Department of Revenue directly for more information on the different taxes your LLC might have to pay:

Minnesota Department of Revenue
Contact page (there are different phone numbers for different tax departments)

Our Recommendation

Calculating your tax obligations in Minnesota can be complicated and if done improperly can negatively impact your LLC.

We recommend that you get help from a tax professional once your LLC is formed. You can use Thumbtack or Yelp.

Hiring a tax professional will not only help you keep your Minnesota LLC in compliance, but it will also give you an advisor to go to for other business questions.

You’ll want someone who’s a good fit for your company, makes you feel comfortable, and is willing to answer all of your questions. It should be someone you like personally as well as professionally. We recommend talking with at least 2-3 people before making your final decision.

Matt Horwitz
Founder & Educator, LLC University®
Forming an LLC shouldn't be so complicated. Our step-by-step guide will make the process a breeze – and no complex legal jargon! LLC University® teaches people how to form an LLC for free in all 50 states. We hope you find our free guides and resources helpful in your business journey.

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