It takes a certain type of individual to thrive in Minnesota. With its cold and rugged conditions, the resolve required to be a Minnesotan can translate well within the business world. Affectionately called the “Land of 10,000 Lakes,” Minnesota is also home to thousands of businesses, including a number of Fortune 500 companies. 3M, General Mills, and Cargill are just a few titans of industry that place their headquarters in Minnesota, and countless smaller businesses also flourish throughout the state. If you are interested in forming an LLC, Minnesota can be an especially hospitable place to do so.
Forming an LLC in Minnesota will call for a fair amount of research on your part as a business owner. You will have to study your market, perhaps putting to use years or decades of experience that you have in your industry. You will also need to create a sound business plan that ensures the financial viability of your enterprise. Hiring an effective and experienced team is also a crucial part of starting your own business. On top of all that, there is a formal process that you will need to complete to register your limited liability company. Read on to learn more.
Why Forming an LLC in Minnesota is Right For Your Business
As a consumer, you have probably noticed the letters “LLC” in the names of businesses you have patronized over the years. The reason for this is that limited liability companies are incredibly common. As a business structure, an LLC offers substantial benefits that can be enjoyed by businesses of all sizes.
The main draw to establishing an LLC is that it affords the prospect of “limited liability.” Let’s face it, not every business will make it, and bankruptcy is an unfortunately common outcome for many organizations. Should you find yourself in this position as an LLC, you can shield your personal assets from potential legal judgments. In other words, members of an LLC are not liable for debts incurred by the business itself.
Another great benefit to establishing a limited liability company is its “pass-through” status that is granted by the Internal Revenue Service (IRS). What this means is that the profits and revenue generated by your business are not taxed until they “pass through” to the members of the LLC. To put it another way, you will only pay income taxes on what you pay yourself.
Choosing a Name for Your Business
If the perks of a limited liability company are appealing to you, your first order of business should be to choose a name. Under Minnesota state law, every registered LLC must have the words “Limited Liability Company,” or a suitable abbreviation within their name. The name of your LLC must also be unique from other businesses within the state’s registry.
To see which names are taken already, you can peruse the Minnesota business name database (this is public information). If you would like, you can also reserve a name for up to 12 months in advance of registering your LLC. This can be done by paying a small fee to the Minnesota Secretary of State’s office.
Deciding on a Registered Agent
The next step in the process of forming your Minnesota LLC is to appoint what is called a “Registered Agent.” The role of this individual is to receive any service of process on behalf of your business. This includes correspondence on legal matters as well as government or tax concerns.
While the state of Minnesota requires an LLC to have a registered agent, it is also a sound business practice. By having one individual tasked with this responsibility, other members of the LLC can put their energies into the day-to-day operations of your business. Oftentimes, the registered agent position is filed by in-house legal counsel, though that is not always the case.
Compile Your Articles of Organization
With the necessary preliminary details in place, it is time to complete your Articles or Organization. This document, submitted to the Minnesota Secretary of State, will register your limited liability company. You can expect to provide some basic information about your business, the members of the LLC, as well as your registered agent. Once this document has been completed, you can mail it to the Secretary of State’s office for processing.
Register Your LLC Today with Us
If you have done the background research and opted to form a limited liability company, the prospect of doing a bunch of paperwork may feel daunting. As a budding entrepreneur, you may not have much free time for locating and printing documents, filling them out by hand, and bringing them down to your local post office. Fortunately, there is a quick and easy way for you to register your LLC.
At the Corporation Center, we offer easy-to-fill web forms for Minnesota business owners. Using our SSL-encrypted web portal, you can safely submit your Articles of Organization in just a matter of minutes. To learn more, contact us today.