The Essential Checklist for Starting a Business in Minnesota

June 25th, 2026

Starting a business is exciting, but the administrative and legal requirements can feel overwhelming. Minnesota has specific procedures and regulations that new business owners must follow to establish their ventures legally, avoid personal liability, and set themselves up for success. This step-by-step guide walks you through the essential tasks every new Minnesota business owner should complete.

Step One: Choose Your Business Structure

Before you can register your business, you need to decide what type of entity you'll create. Will you operate as a sole proprietorship, form an LLC, incorporate, or create a partnership? This decision affects your liability protection, taxes, and ongoing compliance requirements. For businesses with multiple owners, this decision should be made collaboratively, ideally with input from an attorney and accountant who can explain the implications for your specific situation. Each structure has advantages and disadvantages depending on your circumstances, risk tolerance, and long-term goals.

Step Two: Choose and Register Your Business Name

Your business name is more than just what you call your company—it's a legal identifier that must comply with Minnesota requirements. Check name availability through the Minnesota Secretary of State's website to ensure your desired name isn't already taken or too similar to existing businesses.

Different business structures have different naming requirements. LLCs must include "Limited Liability Company," "LLC," or "L.L.C." in their name. Corporations must include "Incorporated," "Corporation," "Company," or abbreviations like "Inc.," "Corp.," or "Co." Certain words like "bank," "insurance," or "university" are restricted and require special permission.

If you plan to operate under a name different from your legal entity name, you'll need to register a "doing business as" (DBA) name, also called an assumed name, with the Minnesota Secretary of State. Additionally, professionals such as lawyers and accountants must register as professional entities.

Step Three: File Formation Documents

For LLCs and corporations, you must file formation documents with the Minnesota Secretary of State. For LLCs, this means filing Articles of Organization, which typically include your LLC name, registered office address, registered agent information, management structure (member-managed or manager-managed), and organizer information.

Corporations file Articles of Incorporation, which include the corporation name, registered office and agent, number of authorized shares, incorporator information, and any specific provisions about how the corporation will operate.

The filing fee for LLCs and corporations in Minnesota is currently $155. You can file online, by mail, or in person. Online filing is fastest, typically processing within a few business days.

Step Four: Obtain an EIN

An Employer Identification Number (EIN) is essentially a Social Security number for your business. The IRS issues this nine-digit number to identify your business for tax purposes. You need an EIN if you have employees, operate as a corporation or partnership, file certain tax returns, or withhold taxes on income paid to non-resident aliens.

Even if you're a single-member LLC without employees, getting an EIN is advisable. It allows you to open business bank accounts and build business credit without using your personal Social Security number.

You can apply for an EIN free through the IRS website, and you'll receive it immediately upon completion. Never pay a third-party service to obtain an EIN—it's a simple, free process you can complete yourself in minutes.

Step Five: Register for Minnesota Tax Accounts

Most Minnesota businesses need to register with the Minnesota Department of Revenue. You'll likely need a Minnesota Tax ID Number for collecting and remitting sales tax if you sell taxable goods or services, withholding taxes if you have employees, and various other state tax obligations depending on your business type.

Registration is free and can be completed online through the Minnesota e-Services system. The process is straightforward and provides immediate confirmation of your tax accounts.

Step Six: Create Essential Business Documents

Even though Minnesota doesn't require you to file these documents with the state, creating them is crucial for protecting your interests, preventing future disputes, and avoiding personal liability for business debts. LLCs should create an Operating Agreement that outlines ownership percentages, profit and loss distribution, management structure and decision-making authority, procedures for adding or removing members, buy/sell provisiors, and dissolution procedures.

Corporations need corporate bylaws covering board of directors structure and responsibilities, shareholder rights and meeting procedures, officer positions and duties, and stock issuance and transfer procedures. They should also maintain corporate minute books and stock certificates.

Partnerships should create partnership agreements detailing each partner's contributions, profit and loss sharing, management responsibilities, dispute resolution procedures, and exit strategies. Additionally, all businesses should keep annual resolutions signed and dated for all significant business decisions.

These documents prevent misunderstandings, establish clear expectations, provide guidance for handling common business situations, and protect the liability protection your entity structure provides.

Step Seven: Obtain Necessary Licenses and Permits

Depending on your business type and location, you may need various licenses and permits. Most businesses need a general business license from their city or county. Professional services often require state licensing, such as contractors, cosmetologists, accountants, attorneys, healthcare providers, and real estate agents.

Some industries require special permits including food service establishments, liquor sales, childcare facilities, and manufacturing operations. Check with your city or county clerk's office and relevant state licensing boards to identify all required licenses and permits for your specific business.

Step Eight: Open a Business Bank Account

Keeping business and personal finances separate is crucial for liability protection, tax compliance, accurate bookkeeping, and professional credibility. To open a business bank account, you'll typically need your formation documents (Articles of Organization or Incorporation), your EIN, operating agreement or bylaws, and personal identification.

Shop around for business banking options, as fees and services vary significantly between banks. Credit unions often offer competitive rates and lower fees for small businesses.

Step Nine: Obtain Business Insurance

Even with liability protection from your entity structure, insurance provides additional protection and is often required for certain businesses. Consider general liability insurance to cover common business risks, professional liability insurance for service-based businesses, property insurance to protect equipment and inventory, workers' compensation insurance (required if you have employees), and commercial auto insurance if you use vehicles for business.

Work with an insurance agent familiar with businesses in your industry to identify appropriate coverage levels.

Step Ten: Understand Ongoing Compliance Requirements

Starting your business is just the beginning. Minnesota businesses have ongoing compliance obligations including filing annual renewals with the Secretary of State (required for LLCs and corporations), maintaining current registered agent information, filing tax returns and making estimated tax payments, maintaining proper corporate formalities for corporations, and keeping business licenses current.

Mark these deadlines on your calendar and set reminders to avoid penalties and maintain good standing.

Additional Considerations

Beyond these essential steps, consider establishing accounting systems and bookkeeping practices, creating employment policies and procedures if hiring employees, securing appropriate business internet domain names and social media handles, and consulting with an attorney and accountant to ensure you've addressed all legal and tax considerations for your specific business.

Getting Started Right

Starting a business involves numerous administrative and legal tasks, but taking time to complete them properly protects you legally, positions your business for success, and prevents costly problems down the road. While this checklist covers the essentials, every business is unique. Consulting with legal and financial professionals ensures you haven't overlooked anything specific to your situation and industry.

The investment you make in properly establishing your business foundation will pay dividends throughout your business's life.

This blog post is for informational purposes only and does not constitute legal advice. For specific advice, contact us.

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Estate Planning for Blended Families: Avoiding Conflicts and Ensuring Fairness

By Chad Mckenney • June 30, 2026

July 2nd, 2026

Transferring Firearms into a Minnesota Estate Plan

By Chad Mckenney • March 24, 2026

If you own firearms in Minnesota, your estate plan needs to address them—carefully. Firearms are unlike most other personal property. Transfer them incorrectly, and your family could face serious legal consequences, including federal felony exposure. With the right planning, however, you can keep your collection in the family, out of probate, and out of trouble. Here is what every Minnesota gun owner should understand. First: Categorize the Firearms The right strategy depends heavily on what kind of firearms the client owns. Title I (Ordinary Firearms) — standard rifles, shotguns, handguns not regulated by the NFA Title II (NFA Firearms) — suppressors, short-barreled rifles (SBRs), Any Other Weapons (AOWs), destructive devices Minnesota-specific note: Machine guns and short-barreled shotguns are banned at the state level in Minnesota, so those two NFA categories are off the table for Minnesota residents entirely. Option 1: Will / Intestate Transfer (Title I Firearms) For ordinary firearms, a will works fine. Minnesota’s transfer reporting requirements under Minn. Stat. § 624.7132 do not apply to transfers at death—so the 30-day waiting period and background check requirements for pistol/assault weapon transfers are exempted for estate transfers. Practical considerations: • Identify specific firearms and beneficiaries clearly in the will or a personal property memorandum • Confirm beneficiaries are legally eligible to possess firearms (Minn. Stat. § 624.713) • Firearms go through probate, which creates a public record Option 2: Revocable Trust (Title I Firearms) Titling firearms in a revocable living trust avoids probate and keeps the collection private. This works well for clients with significant collections of ordinary firearms. The trustee takes possession at death and distributes per trust terms without court involvement. Option 3: Gun Trust (NFA Firearms — Suppressors, SBRs, AOWs) For clients with NFA-regulated items, a dedicated gun trust is generally the best planning vehicle. Key advantages: • NFA firearms registered to a Minnesota gun trust pass to beneficiaries outside of the probate process according to the trust’s terms • NFA firearms registered to an individual pass through probate, which can be both slow and expensive • Multiple trustees can lawfully use and possess the NFA firearms, whereas NFA firearms registered to an individual can only be used and possessed by that registered individual during their lifetime • If a family member has access to a safe containing an NFA item they aren’t authorized to possess, it is technically a felony—a gun trust eliminates that exposure • If the settlor is later deemed incompetent, a co-trustee can take possession of the NFA firearms and hold them on behalf of the settlor At Death: NFA Transfer Process Through an Estate If a client dies with NFA items owned individually (no gun trust), the executor handles the transfer: • NFA firearms may be transferred on a tax-exempt basis to a lawful heir using ATF Form 5 (Application for Tax Exempt Transfer and Registration of a Firearm). A lawful heir is anyone named in the will, or anyone entitled to inherit under Minnesota intestacy law. • For transfers outside the estate (to a non-heir), ATF Form 4 is used and the $200 transfer tax applies • Unregistered NFA firearms in an estate are contraband and cannot be registered—the executor should contact the local ATF office Practical Checklist for Estate Planning Clients 1. Inventory the collection — identify every firearm, its type, and whether it’s NFA-regulated 2. Confirm beneficiary eligibility — no prohibited persons under state or federal law 3. Consider a gun trust for any NFA items (suppressors, SBRs, AOWs) 4. Use a revocable trust or will with a personal property memorandum for Title I firearms 5. Secure storage instructions — address who has access and when, to avoid inadvertent possession violations 6. Coordinate with a licensed firearms dealer for any post-death transfers that require Form 4 processing Questions? We Can Help. Estate planning for gun owners requires careful attention to both federal and Minnesota-specific law. At Donohue McKenney, Ltd., we help clients build plans that protect their families and their collections. Contact our Maple Grove office to schedule a consultation. 763-201-1450 or info@dmlawltd.com

We're Hiring

By Chad Mckenney • February 6, 2026

WHO WE ARE Donohue McKenney Ltd. is a full-service law firm in Maple Grove, Minnesota, providing comprehensive legal services to business and individual clients throughout the Twin Cities and nationwide since 1994. Our practice areas include business law, construction law, employment law, real estate, estate planning, probate, family law, personal injury, and civil litigation. Visit dmlawltd.com for additional information. POSITION OVERVIEW We are seeking an experienced Legal Assistant or Paralegal to join our team, providing support to our family law and civil litigation attorney. The ideal candidate is a detail-oriented self-starter who thrives in a collaborative, team-oriented environment and can effectively manage multiple priorities while meeting deadlines. KEY RESPONSIBILITIES Case Management & Administration • Assist in all aspects of family law and civil litigation matters • Maintain attorney's calendar and coordinate phone calls, meetings, depositions, mediations, and court appearances • Monitor intake of new matters and schedule consultations with attorneys • Ensure proper docketing and timely filing of all court papers • Track case progress, deadlines, and procedural requirements • Maintain organized case files with all relevant documents, pleadings, and correspondence Document Preparation & Filing • Draft, prepare, proofread, and review legal documents including pleadings, correspondence, deeds, and estate planning documents • File and eFile documents with courts and governmental offices Client Relations • Conduct new client intake calls and gather essential case information • Create and update client and matter records in case management database • Communicate case status updates and upcoming deadlines to clients and respond to client questions • Gather information from clients to respond to discovery requests Research & Support • Research and compile case-related documentation, reports, and billing summaries • Organize discovery materials and evidence • Assist in hearing and trial preparation • Perform various clerical duties including routing mail and screening calls/emails QUALIFICATIONS Required • Minimum 2 years of administrative assistant experience • Knowledge of Minnesota state court procedures and e-filing systems or willingness to learn • Proficiency in Microsoft Office, Adobe Acrobat, case management software, and legal research tools. Willingness to learn unfamiliar software. • Exceptional organizational abilities and attention to detail • Excellent written and verbal communication skills • Ability to manage multiple priorities and meet deadlines • Strong interpersonal skills and team collaboration abilities • Self-motivated with a positive, professional, can-do attitude • Commitment to strict confidentiality Preferred • Legal Assistant or Paralegal experience • Experience with family and domestic law matters COMPENSATION & BENEFITS • Competitive salary based on experience • Medical, Dental, HSA, and 401K options • Flexible/hybrid schedule available after initial training period TO APPLY Please send your resume to Info@dmlawltd.com We are not accepting search firm submissions for this position. Please apply directly.