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Roulet Law Firm, P.A.

Minnesota Businesses and Tax Filing Requirements

When choosing a business entity in Minnesota (Link to Business Services PRACTICE AREA Page) for your new commercial venture, you must consider a variety of factors. One important detail to think about is taxes and how they need to be filed. Here is how tax filing requirements are broken down for various Minnesota business entities:

Sole Proprietorship

  • Required to file with Secretary of State if the business name is different from the owner's name
  • FEIN and Minnesota ID not required unless you will be making taxable sales or will have employees
  • Annual registration is not required
  • Forms that need to be filed are Federal Form 1040 and Minnesota Form M1
  • Schedule C of owner's federal Form 1040 used to report income or losses

Partnership

  • Required to file with Secretary of State if the business name is different from the owner's name
  • FEIN and Minnesota ID are required
  • Annual registration is not required
  • Forms that need to be filed are Federal Form 1065 and Minnesota Form M3
  • Schedule E of partners' federal income tax returns used to report income or losses


C Corporation

  • Required to file with Secretary of State
  • FEIN and Minnesota ID are required
  • Annual registration is required
  • Forms that need to be filed are Federal Form 1120 and Minnesota Form M4
  • Those same forms are used to report income or losses


S Corporation

  • Required to file with Secretary of State
  • FEIN and Minnesota ID are required
  • Annual registration is required
  • Forms that need to be filed are Federal Form 2553, Federal Form 1120S, and Minnesota Form M8
  • Schedule E of shareholders' Federal Form 1040 used to report income or losses


Limited Liability Partnership (LLP)

  • Required to file with Secretary of State
  • FEIN and Minnesota ID are required
  • Annual registration is not required
  • File same forms as partnerships


Limited Liability Company (LLC)

  • Required to file with Secretary of State
  • FEIN and Minnesota ID are required. If you are a one-member LLC, follow rules for sole proprietor.
  • Biennial registration is required
  • Forms that need to be filed vary

If you own a business, or are thinking of starting a business in Minnesota, contact Maple Grove financial services attorney Chuck Roulet to be your counsel for any business law questions or issues. Call Chuck at 888-719-5589 and feel free to order a complimentary copy of his book Be Your Own Boss: A Fast and Friendly Legal Guide to Starting Your Own Business.