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Minnesota LLC members must pay federal income tax at the 15.3% self-employment rate plus state income tax at a graduated rate. Minnesota collects a state sales tax of 6.875%, and most municipalities also levy a local sales tax.
The state has a thriving economy with venture capitalists and angel investors willing to help fund new businesses. But it's not just about money; Minnesota also has a supportive business climate with a skilled workforce, low taxes, and numerous financial incentives.
Minnesota is a state that provides every start-up and small and medium sized enterprise with several advantages including a bright and sunny business climate. Forbes ranked Minnesota as the 15th best state to establish and operate a business.
An LLC is a hybrid between a corporation and a sole proprietorship, offering easy management, pass-through taxation, and the liability protection of a corporation. Similar to a corporation, it is a separate legal entity, but there is no stock.
Benefits of starting a Minnesota LLC: Separates and limits your personal liability from your business liability and debts. Easily file your taxes and discover potential advantages for tax treatment. Simple filing, management, compliance, regulation and administration.
Filing as an S Corp in Minnesota Choose a Name. ... Choose a Registered Agent. ... Choose Directors or Managers. ... File Articles of Incorporation or Articles of Organization. ... File Form 2553 to Turn Business into an S Corporation.