Limited Liability Companies (LLCs)

A limited liability company (LLC) is a business structure that blends some of the characteristics of corporations and partnerships.

LLCs that are based in Minnesota or do business in Minnesota but based in another state must file its Articles of Organization with the Minnesota Secretary of State. For details, see Minnesota and Foreign Limited Liability Companies on the secretary of state website.

Apply for ID Numbers

For tax purposes, LLCs must apply for a federal Employer ID Number from the Internal Revenue Service (IRS), and a Minnesota Tax ID Number from the Minnesota Department of Revenue.

Filing Status for LLCs

LLCs usually file the same type of tax return with Minnesota as they file with the IRS.

We follow the IRS "check-the-box" elections made by a foreign LLC that is owned by a corporation. (See Revenue Notice 13-08 and Treasury Regulations 301.7701-1 through 301.7701-3.)

LLCs may file an election with the IRS to be treated as a corporation for tax purposes. Otherwise, an LLC’s default filing status determines how it reports and pays income taxes, as outlined:

• A multiple-member LLC that does not elect for corporate filing status will be treated as a partnership.
• If a single-member LLC does not elect for corporate filing status, the LLC and its owner will be treated as one individual for income tax purposes. The member (owner) reports the LLC’s income tax information on their individual return.

For More Information

See Limited Liability Company on the IRS website or see IRS Publication 3402, Taxation of Limited Liability Companies.