C corporations
You are a C corporation if you are incorporated with the Minnesota Secretary of State.
Cooperatives
Cooperatives may be organized as corporations or as unincorporated associations.
Estates/Trusts
You are an estate or trust (fiduciary) for Minnesota tax purposes if you are required to file federal Form 1041, U.S. Income Tax Return for Estates and Trusts.
Limited liability companies (LLCs)
LLCs are authorized organizations registered with the Minnesota Secretary of State.
An LLC with one member only may be taxed as a corporation or sole proprietorship. If the LLC chooses to be taxed as a sole proprietorship, there is no need to register the LLC unless a Minnesota ID number is required for another purpose.
An LLC with two or more members (e.g., partnerships and limited partnerships) may choose to be taxed as a partnership or corporation. Both federal and state ID numbers are required, even if the LLC has no employees.
Nonprofit organizations
You are a nonprofit organization if you are exempt as defined in
M.S. 290.05.
Nonprofit corporations
A nonprofit corporation is the same as a corporation except that it cannot pay out dividends of its profits.
Partnerships
A partnership is two or more persons or entities (e.g., two corporations).
S corporations
You are an S corporation if you elected to be taxed under Subchapter S of the Internal Revenue Code (IRC).
Sole proprietorships
You are a sole proprietor if you are an individual who owns an unincorporated business and are not in partnership with others.
For a brief overview of the different types of entity choices available when starting a new business, see Business Entities: An overview.
