Partnership Filing Requirements

A partnership that has taxable Minnesota gross income must file Form M3, Partnership Return, if it’s required to file one of the following federal tax forms:

• Form 1065, U.S. Return of Partnership Income
• Form 1065-B, U.S. Return of Income for Electing Large Partnerships

Each individual partner must report their share of the partnership’s income on their income tax return. However, the partnership pays the state minimum fee, if one is required.

Note: S corporations with Minnesota income must use Form M8, S Corporation Return. For single-member LLCs, the form used for Minnesota income tax depends on how the business is registered for federal tax purposes.

How do I know if my business has nexus?

If you are unsure whether your business has nexus–a taxable presence, sales or other activity in the state, see Minnesota Filing Requirements.