Minnesota LLC Tax Calculator
Minnesota has a graduated state income tax with a top rate of 9.85%, and does not charge a required annual LLC fee. Enter your expected Minnesota LLC net profit to see your full 2026 tax and fee breakdown.
Where your net profit goes
Take-home pay
$56,343
Social Security
$8,589
Medicare
$2,009
Federal income tax
$4,898
Minnesota income tax
$3,162
Federal SE tax
Minnesota
Total cost of doing business
Free annual renewal, but still required to keep the LLC in good standing.
Frequently asked questions
Does forming an LLC lower my taxes? +
No, not by default. A single-member LLC is taxed exactly like a sole proprietorship — all profit passes through to your personal return and is subject to the same 15.3% self-employment tax. The only difference is the state LLC fee added on top.
Why form an LLC if it doesn't save on tax? +
Liability protection, not tax savings — an LLC separates your personal assets from business debts and lawsuits. Tax savings only come from a separate choice: electing S-corp taxation on top of the LLC.
Can an LLC elect S-corp taxation? +
Yes. An LLC can file to be taxed as an S-corp, which can reduce self-employment tax on the profit above a reasonable salary. See our S-corp election calculator to check whether that trade-off is worth it for your numbers.
What's the LLC fee based on? +
It varies entirely by state, from $0 to $800 per year, structured either as a flat franchise tax (like California's $800 minimum) or an annual or biennial report fee.
Do I have to pay the LLC fee even with no profit? +
Usually yes — most state LLC fees are flat regardless of income. California's $800 minimum franchise tax is the best-known example of a fee owed even in a loss year.
What does Minnesota charge for an LLC? +
Minnesota does not charge a required annual LLC fee. Free annual renewal, but still required to keep the LLC in good standing.
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