A Minnesota LLC must have appointed a registered agent to perform legal services in the state of their behalf. The registered agent can be an individual with residence in Minnesota, a business with an address in the state, or a foreign business with the authority to conduct business in the state.
The Minnesota LLC is created by filing the Articles of Organization to the Minnesota Secretary of State. The articles will include the LLC’s name and address, its business purpose, and registered agent information. The articles can be filed online at the Minnesota Secretary of State Website (https://mblsportal.sos.state.mn.us/).
Naming requirements for Minnesota LLCs include having the words “Limited Liability Company” or the abbreviation “LLC”. The LLC’s name must be distinguishable from the names of other businesses already on file in the state. The Minnesota business name database (https://mblsportal.sos.state.mn.us/Business/Search) can be a resource to check for name availability in the state.
What is an LLC?
LLC refers to a Limited Liability Company, and it is organized by business owners. They have fewer corporate formalities and can be taxed by the IRS as a sole proprietorship, S corporation, or C corporation.
Each state has different requirements and regulations regarding the formation of an LLC. Business owners should check with state laws when considering forming an LLC.
Owners of LLCs are known as members, they can be individuals, corporations, other LLCs, or foreign entities. There is no limit on the number of members an LLC can have. In most states, “single-member” LLCs are allowed, where there is only one owner involved in managing the LLC.
The IRS will treat the LLC as a corporation, partnership, or included in the LLC owners personal tax return. A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless they file Form 8832 and elect to be treated as a corporation.
LLCs carry tax advantages over other forms of business such as limited partnerships. The owners of an LLC do not assume personal liability for business debt, and any losses of the LLC can be used as tax deductions against active income.
An LLC can be formed through the state business formation process or consulting with LegalZoom.