--- title: "Minnesota Entity Running Costs and Filings" description: "Understand Minnesota's LLC formation fee, corporate income tax, and ongoing filing duties, and see how Teamed's EOR sidesteps them entirely." canonical: https://www.teamed.global/country-hiring-guides/united-states/minnesota/entity-running-costs-and-filings --- ![Minnesota business district.](/cluster-assets/country-hiring-guides/united-states/minnesota/entity-running-costs-and-filings/images/hero.webp) # How much does it costto run a company in Minnesota. Teamed absorbs Minnesota's entity costs and filings under one EOR agreement, so you never file, pay, or track state paperwork yourself. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Minnesota guide 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. Corporate income tax9.8% 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 Minnesota 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. 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 salaries and employer costs rather than on a headcount rule of thumb. Talk to a member of the team Model the crossover for the United States Who carries it ## Your own entity, when it's time. We set it up, migrate you in, and hand it back intact. Global Entity and Employment Operations, which we call GEMO, is how Teamed forms your company, registers it for tax and payroll, runs it month to month and keeps its filings current, across 100+ countries. You stay the employer. We do the work behind it. In Minnesota, that means we handle the $155 Articles of Organization filing, the annual registered agent obligations, and the entity's exposure to the state's 9.8% franchise tax while you're still on our platform, then transfer a fully formed, compliant entity to you the moment it makes sense to own it directly. Entity Management (GEMO) The Graduation Model Employer cost calculator > They set up our EU entity and moved hires across without missing a payroll. *Helene Dubois, COO* Talk to an expert about Minnesota 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 Minnesota 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, salary levels, 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. ## More on entities in Minnesota - [Hiring in Minnesota, overview](/country-hiring-guides/united-states/minnesota)parent - [Minnesota setting up](/country-hiring-guides/united-states/minnesota/entity-setup)sibling - [Minnesota tax presence](/country-hiring-guides/united-states/minnesota/permanent-establishment-risk)sibling - [Minnesota entity or eor](/country-hiring-guides/united-states/minnesota/eor-vs-entity)sibling - [Minnesota moving from an eor](/country-hiring-guides/united-states/minnesota/moving-from-eor-to-your-own-entity)sibling - [Set up an entity, by country](/entity-setup-by-country)hub - [Entity Management (GEMO)](/entity-management)core - [Talk to an expert about Minnesota](https://www.teamed.global/contact?from=entity-running-costs-and-filings)CTA