Minnesota is one of the most successful business states in America. Starting a business or non-profit organization here consists of three basic steps: filing documents with your city, county, and state; obtaining an employer identification number from the IRS online; submitting articles to start up a new corporation or LLC form through the Secretary of State.
Starting a business in Minnesota consists of three basic steps:
1. Write a business plan. (Highly recommended)
2. Choose a business type.
3. Register your business.
Step 1: Write a Business Plan
There are many wonderful guides available on the internet about business plans. While this is not a required step it is highly recommended as it will help with funding, vision, and other foundational aspects related to starting a business.
Step 2: Choose a business type
One of the biggest decisions you will have to make as a business owner is what type of entity your company should be. There are two main types, corporations and partnerships, with other options depending on how many people own it or where they live. A corporation provides more liability protection than an LLC but offers less flexibility in taxation rules for owners while an LLC may provide some tax benefits with its pass-through status; however, this can change year to year based on IRS regulations so consult a professional before making any final determinations about which structure would work best for you!
Businesses form under one or several different structures such as sole proprietorships, limited liability companies (LLCs), S Corporations, C Corporations plus others that vary by state. Here is the list of the main types of business structures in Minnesota:
- ASSUMED NAMES / DBA
- MINNESOTA NONPROFIT CORPORATIONS
- MINNESOTA BUSINESS CORPORATIONS
- FOREIGN CORPORATIONS (BUSINESS, NONPROFIT & COOPERATIVE)
- MINNESOTA & FOREIGN LIMITED LIABILITY COMPANIES
- MINNESOTA & FOREIGN LIMITED LIABILITY PARTNERSHIPS
- MINNESOTA & FOREIGN LIMITED PARTNERSHIPS
- MINNESOTA PUBLIC BENEFIT CORPORATIONS
You can learn more about these types of businesses here: MN Sec of State – Types of businesses
Step 3: Register (file) your business on this site, in person or by mail
Minnesota offers multiple convenient options to register your business.
- Click here to register your business online – scroll down below the search area on the page and choose your business structure type from the titled “File a New Business or Nonprofit”.
If needed, here directions here to create an online account.
- To register in person or by mail, click here for business registration forms, and choose your business type from the options at left.
Contact the Minnesota Department of Revenue to obtain a state tax ID number
Go to the IRS for a Federal Tax ID number.
The business world has so many complex rules, it’s difficult to keep up with them all. Here is a list of some business resources you may need for your company or start-up.