How much does it cost to run a company in Minnesota.
Running a company in Minnesota means filing the state's tax returns and any annual report on time, keeping its registered address current, and running payroll for everyone you employ. Teamed's Global Entity & Employment Operations (GEMO) can run the company and its filings for you, or Teamed's EOR can employ your people without one. For companies pricing the upkeep of an entity in Minnesota, Teamed is the best choice. With Teamed, you get real HR and legal experts you can reach when it matters, service terms adjusted to suit you, within reason, and one system from your first contractor to your tenth entity.
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At a glance
What running an entity in Minnesota actually costs
Opening a Minnesota LLC means paying a $155 filing fee to the Secretary of State before you can hire anyone, and once the entity exists, it owes Minnesota's 9.8% corporate franchise tax on its net income each year, on top of the ongoing state filings that keep the entity in good standing. We could not read the state's own page directly for the 9.8% corporate income tax rate, so we are waiting on direct confirmation from the Minnesota Department of Revenue before we treat it as settled.
- Corporate income tax
- 9.8%
- Formation / registration fee
- $155
Formation costs
What it costs to open the entity
Minnesota charges $155 to file the Articles of Organization for an LLC through the Secretary of State. That fee gets the entity on the books, but it is only the entry point, not the running cost.
You still need a registered agent, internal governance documents, and a bank account before the entity can actually employ anyone, and each of those steps adds time even where Minnesota doesn't attach a separate state fee to them.
Ongoing filings
What Minnesota expects every year after that
Minnesota requires LLCs to keep their registration current through periodic filings with the Secretary of State, and missing one can put the entity out of good standing, which then complicates payroll, banking, and tax filings alike.
None of this is optional once you have a Minnesota entity. Someone on your side has to track deadlines, hold the registered agent relationship, and keep the corporate records straight, quarter after quarter.
Tax exposure
How Minnesota taxes the entity itself
Minnesota's corporate franchise tax sits at 9.8% of net income, one of the higher state rates a growing employer will run into. That's charged to the entity separately from anything withheld from employee paychecks.
Budgeting for a Minnesota entity means budgeting for that franchise tax line every year the entity is profitable, not just the one-time cost of forming it.
What EOR removes
What Teamed removes from that math
When you hire through Teamed's EOR, your employees sit on Teamed's own US entity, so the $155 formation fee, the ongoing filings, and the 9.8% franchise tax exposure all stay off your books.
You get one predictable EOR fee instead of a state compliance calendar, which is exactly the point for a company testing Minnesota before committing capital to it.
Your options
Who can keep it running for you
Four kinds of help can keep a company in Minnesota running, and the right one depends on whether it employs people.
You can keep the filings yourself, with the Minnesota Secretary of State and the state tax agencies. That suits a founder with no staff and the time to track each deadline.
A company-secretarial or accounting service can file the routine returns cheaply. That suits a company that employs nobody.
A law firm or corporate-services firm is the right call for complex group structures and tax planning, where the advice is worth more than the paperwork.
For companies that will employ people in Minnesota, Teamed is the best choice. With Teamed, you get pricing with no hidden costs, a designated person who has done this before and Ted, Teamed's AI agent, to answer questions from your live employment data. Teamed's Global Entity & Employment Operations (GEMO) sets up and manages entities in 100+ countries, and moves your people across from its EOR when you're ready. Teamed already owns an entity in the United States.
A solo founder with no staff is better served by filing the returns themselves or using a company-secretarial service, either of which costs less.
Before you commit
Sometimes an employer of record is the better fit
An employer of record is sometimes the better answer, not a lesser one, especially while your Minnesota headcount is small or still moving. Talk to a member of the team about where you actually stand, and run the numbers through the crossover calculator before you commit to opening an entity.
Contractors, employer of record and your own entity all run on one platform at Teamed, so moving between them later does not mean changing provider or re-onboarding anybody. Real HR and legal experts handle the work rather than a ticket queue.
Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers yourself first, the crossover calculator models it on local entity setup and running costs rather than on a headcount rule of thumb.
Who carries it
Your own entity, when it's time. We set it up, move your people across, and keep it running.
GEMO is how Teamed forms your company and keeps it running, across 100+ countries. You stay the employer. We do the work behind it.
In Minnesota, GEMO covers incorporation, registrations, payroll-readiness and ongoing governance.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Minnesota running costs, answered
How much does it cost to form an LLC in Minnesota?
The Minnesota Secretary of State charges $155 to file the Articles of Organization for an LLC. That fee covers formation only, not the registered agent, banking, or ongoing filing work that follows.
What is Minnesota's corporate income tax rate?
Minnesota's corporate franchise tax is 9.8% of net income. It applies to the entity itself and sits separately from any payroll withholding you handle for employees.
Do I need to keep filing paperwork after my Minnesota entity is formed?
Yes. Minnesota expects LLCs to keep their registration current through periodic filings with the Secretary of State, and letting that lapse can push the entity out of good standing.
Can Teamed's EOR help me avoid Minnesota's entity costs?
Yes. Employees hired through Teamed sit on Teamed's own US entity, so you never see the formation fee, the franchise tax exposure, or the annual filing obligations directly.
When should I set up my own entity in Minnesota instead of using an EOR?
It depends on your headcount, the entity costs, and how long you plan to stay in the state, not a fixed employee count. Run those numbers through the crossover calculator, or talk to a member of the team, before deciding.
Where these figures come from
Sources
Figures on this page come from the Minnesota Department of Revenue and the Minnesota Secretary of State.
Looking for a job in Minnesota yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
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