Starting an LLC in Minnesota is not for the faint of heart. Maintaining one isn’t, either. There’s a bunch of annual requirements: annual taxes, business licenses to renew, and of course, annual reports. A lot of the annual requirements can be pretty complicated, too.
Annual reports can be pretty complicated…but only if you don’t know what to expect. That’s what we’re here for. In this guide, we’ll cover all the essentials to annual reports in Minnesota: LLC filing fees, where to file, due dates, and if you want, where to go to get help filing. By the end, the annual report won’t feel so daunting anymore.
Quick Tip
What is an annual report?
An annual report is a lot like an annual newsletter for your LLC—except you only send it to one place: the state government. Each year, the state needs updated information about your business. And this isn’t a requirement that’s unique to Minnesota. In fact, nearly every state requires some form of annual (or similar timeline) update.
That said, the newsletter analogy falls short because you don’t need to tell the state what you did each month. You don’t even have to tell them the highs and lows of your year. And thankfully, you don’t have to write it out as a letter. All you’ll have to do is fill out the requested information.
Here’s a quick glance at the information Minnesota will require from you:
- File number of the business
- Home jurisdiction
- Legal name of the business
- Alternate name (foreign LLCs only)
- Name and address of the registered agent
- Principal office address for the business
- Name and address of manager for the business (or similar individual)
- Email address for official notices (you can have the address excluded from bulk data requests)
- Name and phone number of individual to contact if questions arise about the form
- If you have any financial interest in agricultural land
Sound overwhelming? Don’t panic. It’s actually a lot easier than you might think! In the rest of this guide, we’ll cover all the essentials to annual reporting—including a DIY approach and how to get help if you’d rather not file on your own.
Where do I start?
When the time comes to file your annual report, your gut might tell you to head to the Secretary of State’s website. And that’s a good instinct. More specifically, you’ll want to head to the Business & Liens section of their website. (Note: you must have an account for this step). There, you can search your business, pull up your form, and get started filing online. If you’d rather file by mail, you can do so by downloading the LLC Annual Renewal form.
One quick note: as you navigate the Secretary of State’s website, you’ll frequently encounter the term “Annual Renewal.” Don’t let that confuse you; it’s the same as an annual report. Minnesota simply uses a slightly different title for the same filing. The terms are interchangeable.
The annual renewal isn’t extremely difficult to fill out, honestly. But if you’re extremely busy (and who isn’t these days?), the report can seem overwhelming—it’s yet another thing you have to do. That said, you can hire a Minnesota LLC Service to handle the work for you. Not only will these services actually form your business for you (if you need it), but they’ll also help you handle annual requirements like the annual report.
How much does Minnesota’s Annual Renewal cost?
Some states have a pretty hefty price tag of several hundred dollars for their annual report. Other states charge more reasonable fees of less than $100. Minnesota, however, is unique; they don’t even charge a filing fee for the annual renewal. As long as you file on time each year, you won’t have any fees.
When is the Annual Renewal due?
In most states, the annual report is due, well, annually. In other states, entrepreneurs often refer to it as an annual report even though it’s due every other year. But in Minnesota, the annual renewal fits its name; you’ll file every year.
More specifically, you’ll need to file your annual renewal every year by December 31st. That said, you won’t file one your first year of business. So if you filed in June of 2022, you wouldn’t submit an annual renewal in December 2022; instead, you’ll start filing a renewal in December 2023.
What happens if you don’t file your annual report?
Sometimes annual check-ins are a pain, right? And we get it: with some things, like annual physicals, dental cleanings, and eye appointments are tempting to skip. Usually, there isn’t a big penalty if you skip them for a year or two (aside from a minor scolding from your doctor).
However, that isn’t the case with annual reports. You should never skip filing your annual report, and you should always do it on time. For one thing, filing on time ensures that you don’t spend any more than you have to.
More importantly, though, failing to file your annual report can cost you your good standing in the state. If your report is delinquent for too long, the state can dissolve your state administratively. Long story short, they’ll shut down your business by force.
If that happens, don’t panic; you can get reinstated. It will just cost you both time and money. Specifically, you’ll have to pay a $25 fee ($45 for online filings). You’ll also need to file an Annual Reinstatement form. It’s far, far easier to simply file your report on time and avoid this hassle entirely.
Conclusion
Quick Tip
Maintaining a Minnesota LLC is no laughing matter, and the annual report is without a doubt one of the most important annual filings. Thankfully, it doesn’t have to be too complicated. Hopefully this guide has helped take out some of the guesswork. And don’t forget: an LLC Service can make things even easier.