To secure and register your brand name it must be unique, not too similar to another registered name, and shouldn’t contain any restricted wording. To check, conduct a Business Entity Search through the Sec. of State, and if there are potential trademark issues conduct another quick search using the TESS System through the U.S. Patent Office.
Keep in mind your LLC name should contain the words ‘Limited Liability Company’ or ‘Limited Company’. Abbreviations for these words like ‘L.C.’ or ‘L.L.C’ are also acceptable. If needed, you can file a Request for Reservation of Name form to reserve for 1 year
Filing Fee: $55 expedited/in-person & $35 mail.
A Registered Agent performs “service of process”, or in other words they’re responsible for receiving and helping process important documents like state filings, legal notices, tax forms, etc. on behalf of your LLC. The agent can be an individual resident or a domestic/foreign business entity registered with the state. A physical street address is also required.
You can hire an outside professional service and expect to pay up to $160/year, or get a Registered Agent free of charge when starting an LLC with IncFile or Incorporate.com. They handle this along with so much more depending on your startup package.
To register an LLC in Minnesota, download, print, fill out and then file Articles of Organization with the Secretary of State. Don’t do this hastily. Are you ready to file this form and make your brand official? Be sure you read the form carefully and understand what’s required.
Filing Fee: $155 Online, $135 for mail/in-person.
An EIN, or Employer Identification Number, is a federal identifier similar to a social security number for individuals. You’ll need it to handle a good portion of your taxes, to set up your business bank accounts, legally hire employees, etc. Thankfully it’s very easy to get one and set up in “the system.”
Okay, this is an incredibly important step because you’re choosing where to begin building your brand’s financial foundation. Don’t assume where you bank personally is the best option for no other reason than convenience. Yes it takes time to research local, state, and national banks as well as credit unions to see who has the most to offer. But it’s worth it!
Once you make your choice a) sync your business accounting software right away and b) keep all other accounts and financial-streams separate so you don’t muddy the waters. If you want to start getting an idea, check into this quick breakdown of Small Business Checking Accounts.
An LLC Operating Agreement is a document that outlines the managerial and financial responsibilities of each of the members of the LLC. It also sets down on paper the percentages of ownership, each member’s share of profits or losses, and how the business will be handled should a member leave. So while this isn’t mandatory or required by the state, we highly advise you to draft one even if you’re a solopreneur.
To get started, consider checking out this savvy list of LLC Operating Agreement templates which you can customize yourself online.
The last chunk of official “red tape” has to do with acquiring proper licensing/permits which will depend on where you’re operating and what kind of business you’re starting. After that, you’ll need to make sure your business adheres to Minnesota taxes.
To get started bookmark the Minneapolis district office of the Small Business Administration and the Sec. of State’s Start a Business page because they’re likely going to be go-to sources. If you need help, consider professional Business License Research packages that get the legwork done for you.
If you’d like help forming an LLC, here are two great options:
IncFile ($49 + state fees) is ideal if you’re on a budget but refuse to sacrifice quality. However if you’d like to have access to an attorney past LLC formation, Rocket Lawyer ($99 + state fees) is the best option.Visit IncFile Or Visit Rocket Lawyer
Note that this article on how to form an LLC in Minnesota isn’t a legal document or legal advice. It’s for informational purposes and the information above is subject to change. For specific legal questions regarding how to form an LLC in Minnesota or business in general, please consult with a lawyer or other accredited professional.