--- title: "Setting Up an Entity in Minnesota" description: "How to form an LLC or corporation in Minnesota, what it costs, what it's taxed, and when Teamed's EOR gets you hiring faster." canonical: https://www.teamed.global/country-hiring-guides/united-states/minnesota/entity-setup --- ![Minnesota business district.](/cluster-assets/country-hiring-guides/united-states/minnesota/entity-setup/images/hero.webp) # How do you set upa company in Minnesota. Teamed forms your Minnesota LLC or corporation, files with the Secretary of State, and manages payroll and tax setup so you can hire fast. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Minnesota guide At a glance ## Minnesota entity setup at a glance Forming an LLC in Minnesota means filing Articles of Organization with the Secretary of State for a $155 fee, then registering for state payroll and unemployment taxes. Any entity earning income in the state also faces Minnesota's 9.8% corporate franchise tax, one of the factors worth weighing before you commit to a standalone entity. Corporate income tax9.8% Formation / registration fee$155 Entity types ## Choosing a structure in Minnesota Most companies hiring in Minnesota form either a limited liability company or a corporation. An LLC gives you flexible management and pass-through taxation at the owner level, while a corporation suits businesses planning to raise outside investment or issue stock. Either way, you file formation documents with the Minnesota Secretary of State and appoint a registered agent with a physical address in the state. The agent receives legal and tax correspondence on your behalf, so you need someone reliably reachable there even if your team works remotely. Formation costs ## What it costs to form an entity The Minnesota Secretary of State charges $155 to file Articles of Organization for an LLC. That covers the initial filing only, not the registered agent, accounting, or legal support you'll likely need around it. Beyond the state filing, budget for a registered agent service, an operating agreement, and setup of your state tax and unemployment insurance accounts. None of these carry a single fixed government fee, so treat them as ongoing line items rather than a one-time cost. Tax obligations ## Minnesota's corporate tax rate A Minnesota corporation pays a 9.8% corporate franchise tax on income earned in the state, per the Minnesota Department of Revenue. That rate applies whether you're a local startup or a foreign entity registering to do business there. If you form an LLC and elect pass-through treatment, the entity itself may avoid this corporate-level tax, with income instead taxed at the owner level. Which structure fits depends on your ownership setup and where your investors sit, so it's worth a conversation with a tax adviser before you file. Ongoing compliance ## Staying compliant once you're formed Forming the entity is the easy part. You then need to keep it current with the Secretary of State, maintain your registered agent, and register for state payroll withholding and unemployment insurance before your first Minnesota hire starts. Add workers' compensation coverage, correct wage statement practices, and any local employment notices, and the compliance list grows quickly. None of this is unusual for a US state, but it does mean a Minnesota entity is a standing commitment, not a one-time task. The honest take ## When an EOR is the smarter Minnesota move Not every hire justifies a Minnesota entity. If you're testing the market, hiring one or two people, or not sure you'll stay long enough to make the filing fee and ongoing compliance worthwhile, an employer of record lets you hire compliantly without any of it. An employer of record is sometimes the better answer, a fair alternative and never a lesser one, especially for a small or still-changing team or when you're testing a market. Talk to a member of the team about your specific plan, or run the numbers yourself with the crossover calculator, since the right call depends on salaries and how long you intend to stay. Building toward your own entity ## Your own entity, when it's time. We set it up, migrate you in, and hand it back intact. When a Minnesota team grows past the point an EOR makes sense, Teamed handles Global Entity and Employment Operations, which we call GEMO, across 100+ countries. We form the entity, transfer your employees onto it, and hand you a fully operational company, not a shell you have to figure out alone. In Minnesota, that means we manage the Secretary of State filing, the registered agent setup, and the payroll and tax registrations, then migrate your existing hires across without a gap in their pay or benefits. You end up with a clean, compliant Minnesota entity, built by people who've already done it. Before you commit ## Sometimes an employer of record is the better fit An employer of record is sometimes the better answer, a fair alternative and never a lesser one, especially for a small or still-changing team or when you're testing a market. Talk to a member of the team about your specific plan, or run the numbers yourself with the crossover calculator, since the right call depends on salaries and how long you intend to stay. 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 manage the Secretary of State filing, the registered agent setup, and the payroll and tax registrations, then migrate your existing hires across without a gap in their pay or benefits. You end up with a clean, compliant Minnesota entity, built by people who've already done it. 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 entity setup questions How much does it cost to form an LLC in Minnesota? The Minnesota Secretary of State charges $155 to file Articles of Organization for an LLC. That covers only the state filing, so you should still budget separately for a registered agent and any legal or accounting help. What tax rate will my Minnesota entity pay? A corporation doing business in Minnesota pays a 9.8% corporate franchise tax on state income, according to the Minnesota Department of Revenue. LLCs electing pass-through treatment may avoid this tax at the entity level, with owners taxed individually instead. Do I need a registered agent to form an entity in Minnesota? Yes, Minnesota requires every LLC and corporation to maintain a registered agent with a physical address in the state. The agent receives official and legal correspondence on the company's behalf, which matters if your team is fully remote. Should I form a Minnesota entity or hire through an employer of record? It depends on your headcount, how long you plan to stay, and whether you want the ongoing compliance work of running your own entity. An employer of record is a fair way to hire in Minnesota without filing anything yourself, and it's worth talking to a member of the team or using the crossover calculator to compare the two paths. Can Teamed help me convert an EOR hire into my own Minnesota entity later? Yes, Teamed's GEMO service forms the Minnesota entity, handles the Secretary of State filing and registrations, and migrates your existing hires onto it without disrupting their pay. You end up owning a fully set-up entity rather than starting from scratch. 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 running costs](/country-hiring-guides/united-states/minnesota/entity-running-costs-and-filings)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-setup)CTA