Minnesota Business Facts
The friendly state of Minnesota is one of America’s best states for entrepreneurship with a pro-business attitude and a consistent ranking among the top ten of CNBC’s “Top States for Business.” Minnesota is a leading state for quality of life, safety, raising a family and most recently was named as the Happiest and Least Stressed state in the nation.
Major Companies Headquartered in Minnesota
Minnesota is the home of many major companies including Target, UnitedHealth Group, General Mills, Best Buy and 3M.
Minnesota has an outstanding business climate with a history of leading the nation for new business 5-year survival rate and Main Street Entrepreneurship. Minnesota entrepreneurs also benefit from low operating costs, competitive tax rates and streamlined regulatory processes. The state’s strong sense of community, high civic engagement and government support of business contribute to the ease of starting a company in Minnesota.
There are 3 basic options: a Corporation, LLC or DBA. Click here to learn more about business entities.
Choosing a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but the less times you have to do that the better). In Step 3 we’ll show you how to search for the name in Minnesota, but we highly recommend you do the following before searching Minnesota state databases:
Restrictions on Minnesota Business Name & Business Purpose
Each state has its own requirements for registering a business. Now that you’ve chosen a business structure and selected your business name, here are the requirements to register your business in Minnesota.
How to form an LLC in Minnesota
How to Incorporate in Minnesota
Considerations when incorporating or forming an LLC in Minnesota
Ready to register a business in Minnesota?
How to Register a DBA in Minnesota
Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLC’s and optional for DBA’s (if you don’t have any employees, it’s required). However, if you are a DBA and don’t obtain an EIN you will be required to use your Social Security Number on many documents so it’s highly recommended that you obtain the EIN to prevent identity theft. You can apply online with the IRS or via IRS Form SS-4.
TIP: We can obtain your EIN for you if you we form your company.
To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork b) your EIN c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).
TIP: Our business formation service includes a free banking resolution for your use.
Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).
TIP: We can help you identify the necessary forms to obtain your business license.
DBA: An annual renewal is required to maintain in good standing. Any Assumed Name certificate that expires as a result of failing to file the annual renewal may be reinstated by filing the annual renewal and paying the applicable fee.
LLC: Minnesota LLCs are required to file an annual renewal every year by December 31.
Corporation: Minnesota corporations must file an annual renewal every calendar year.
Business & Liens (for Corporation, LLC and DBA filings)
Retirement Systems of Minnesota Building
60 Empire Dr., Suite 100
Saint Paul, MN 55103
Metro Area: 651-296-2803
Greater MN: 877-551-6767
Minnesota Taxation Departments
Minnesota Labor and Employment Departments
Minnesota Startup Resources
Small Business Administration (SBA) Minnesota
Minnesota Legal Statutes
Minnesota Chambers of Commerce
MNvest.org – Minnesota investment crowdfunding
Angel.co Minnesota Startups
Minnesota Business News
Minnesota Department of Employment and Economic Development (DEED) – the state’s principal economic development agency. DEED programs promote business recruitment, expansion, and retention; international trade; workforce development and community development.
Minnesota Small Business Development Center
Minnesota Green Business
Wow loved it thankyou! I dreaded making this for a month thinking it would be a hassle. It wasn't thanks to you guys!
Excellent in all aspects. Perfect for new business owners with limited resources but wants to start it off right.