An LLC, or limited liability company, is one of the most common types of business entities used today. The initial set-up of an LLC in Minnesota is fairly simple. First, you must select a name for your business. The name must be unique and not currently in use by another business entity in Minnesota. Second, you must complete your Articles of Organization, which list the name and address of the business and the name and address of the individual creating the business. The Articles of Organization also list a registered agent to accept service of process on behalf of the LLC. The Articles of Organization must then be filed with the Secretary of State’s office. The third step is to draft the Operating Agreement of the business, which is a document that dictates how the LLC will be managed and establishes some of the general rights and responsibilities of the members and managers of the LLC. Once you have completed these three steps, your LLC is valid and ready to do business.
Typically, in order to open a bank account and file tax returns, you must obtain a federal and state tax identification number (similar to an individual’s social security number) for the LLC. It is also important to determine whether your type of business requires any licenses or permits before commencing work. Finally, you may wish to draft additional agreements governing the operation of your business such as a Member Control Agreement, employment agreements, buy/sell agreements, etc. It may also become necessary to select a business attorney and accountant to assist with the ongoing management of your LLC.
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