A sort of business structure called a sole proprietorship is run and owned by just one person. Due to its simplicity and ease of use, it is the most typical type of business structure in the United States and is well-liked by small business owners. Many sole proprietors aren’t clear, nevertheless, whether they must register with the Minnesota state government. In this post, we’ll look into Minnesota’s requirements for sole proprietorship registration and address any related queries.
The state of Minnesota does not have a law requiring lone proprietors to register their company. However, there can be some conditions that must be met at the county or local level. For instance, the city or county where your business is located may require you to seek a license if your firm deals in the sale of alcohol or tobacco. Additionally, you must register your business with the county where it is located if it uses a fake name (commonly known as a DBA).
A business that conducts business under a name other than the owner’s legal name is referred to as a DBA (Doing Business As). By registering a DBA, sole proprietors can operate their firm under a different name while yet being protected from personal liability. On the other hand, an LLC (Limited Liability Company) is a distinct legal entity that shields its owners from personal liability. An LLC must register with the state of Minnesota and pay a filing fee, unlike a single proprietorship.
In Minnesota, a DBA must be registered with the county where a business is located by a sole proprietor who does business under a name other than their legal name. This is done to ensure that the general public can quickly recognize the business owner and to stop fraud. A form must normally be submitted to the county along with a cost that varies by county in order to register a DBA.
Depending on the type of business entity being formed, Minnesota’s business registration fees vary. A filing fee is not necessary, for instance, to form a partnership or a sole proprietorship. However, there is a filing fee that must be paid in order to register an LLC or a company. In Minnesota, an LLC must pay a filing cost of $155 whereas a corporation must pay a charge of $135. A business registration may involve additional expenses in addition to the filing fee, such as legal fees and the cost of acquiring any required licenses or permissions.
In conclusion, even though it is not legally necessary for sole proprietors to register their company with the state of Minnesota, there can be municipal or county-level regulations that must be met. Additionally, you must register your company with the county where your firm is located if it uses a fictitious name. It is advised that you speak with a lawyer or business counselor if you have questions about the registration requirements for your company.