One of the most crucial phases in the planning and preparation involved in starting a business is registering your business name. Depending on the kind of business entity you select, Minnesota’s business name registration fees change.
It is not necessary to register your business name with the state of Minnesota for a sole proprietorship or partnership. The county where your business is located must receive a “Certificate of Assumed Name” if you wish to conduct business under a name other than your own. Depending on the county, this filing can cost anywhere between $10 and $50.
You must register your business name with the Minnesota Secretary of State if you decide to create a limited liability company (LLC). An LLC must pay $135 to file its articles of organization. If you intend to conduct business under a name other than your LLC name, you must also submit a “Assumed Name Certificate”. The cost to file this document varies by county but normally costs between $10 and $50. The cost of registering your business name is included in the expenses for submitting your articles of incorporation if you wish to create a corporation in Minnesota. If you want to conduct business under a name other than your corporate name, there is an additional $5 filing charge for a “Assumed Name Certificate” in addition to the $155 filing price for articles of incorporation.
Now let’s move on to the pertinent questions: What steps should I take to launch my own business? Although starting your own business can seem overwhelming, it can be a fulfilling and successful endeavor with careful preparation and study. The basic steps to starting a business are as follows:
2. Decide on your legal structure (sole proprietorship, partnership, LLC, or corporation)
4. Obtain financing
6. Hire staff (if required)
8. Maintain accurate financial records and file taxes correctly
Pass-through entities, such as LLCs and S corporations, pass profits and losses on to the owners for reporting on their individual tax returns. However, additional taxes like the built-in gains tax and the passive activity tax may apply to S businesses. It’s crucial to speak with a tax expert because the tax ramifications of an LLC vs. a S company can change depending on your unique situation. In an LLC, who is the real estate owner?
The property in an LLC belongs to the LLC as a whole, not to the individual members. Members may, however, give the LLC property in exchange for ownership rights. A single-member LLC is allowed to hold a S corporation, right? A single-member LLC is eligible to hold a S corporation. However, the single-member LLC would require at least one extra shareholder because the S corporation requires a minimum of two shareholders. It’s crucial to seek legal and tax advice to confirm that this structure is suitable for your particular situation.
The cost of obtaining an EIN in Minnesota is not mentioned in the article. Only the cost of registering a company name with the state is covered.