If you are planning to launch a small business in the state of Minnesota, the first thing you want to do is register the business and think of a unique name. However, thinking of the right name is not that easy. In most cases, you might not get the name you want because of availability issues. If that is the case for you, you might want to do a quick business name search in Minnesota before registering.
This article will show you how to do a quick business name search to check if the name you had in mind is available. Plus, we’ll provide useful tips and facts that will help you launch your small business in the North Star State.
Go to:
How to check business name availability in Minnesota
As mentioned above, you need to make sure the business name you choose does not exist in the same state. It should be unique and available, and here is how to check:
1. Go to the Minnesota Secretary of State Website
The Minnesota SOS website has an easy-to-use business entity name search tool that will allow you to check if the name of choice is available.
2. Enter the name and search
To search if a business name already exists in Minnesota, simply type the name of choice and click on search. You can refine the results of your search by clicking a few filters, and see if the business is active or inactive and if the business changed its name.
3. See results if the name is available
If you typed and searched for the exact name you want to name your business and there are no results shown, it indicates that the name is free for you to use.
4. Consider reserving a name
After running a Minnesota business name search, you have two options: You can reserve a name or you can register the name. You should reserve the name if you aren’t planning to set up the business immediately.
Minnesota allows business owners to reserve a name for 1 year for $35 and $55 for expedited service.
To do so, you’ll fill out a quick form and provide the payment.
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of Minnesota, but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
5. Check domain name availability
We created a tool that makes it easy.
How to name your Minnesota business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your Minnesota company?
As you research available business names in Minnesota, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your Minnesota business
Ready to set up your business in MN? Here’s what you do:
1. File your Articles of Organization
Visit the Minnesota Secretary of State website and fill out the Articles of Organization. To fill this out, you’ll need to have an available business name, address, and contact information.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in Minnesota, or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In Minnesota, the cost is $135 and $155 for expedited service.
4. Wait for approval
Minnesota will review your application and typically provide approvals within five business days. Once approved, your business is officially set up.
Our picks of the best registered agent services
Minnesota small business facts
Before we explain how business name availability works in Minnesota, here’s a little bit of insight about opening a business. Here are some important statistics about small businesses in Minnesota from the U.S. Business Administration:
- There are a total of 526,350 small businesses in Minnesota, which is important to know if you are thinking of a unique name for your business.
- Minnesota has generated 22,012 new jobs recently, meaning the small business industry is creating an impact for the locals of Minnesota.
- There are over 30,846 self-employed minorities in Minnesota, showing off its wide diversity of employees and business owners.
- The trade industry has 7,363 small business exporters in Minnesota, meaning that the state is rich when it comes to exporting products that are locally made.
- Despite the growing number of businesses in Minnesota, the unemployment rate grew up to a whopping 8.1% in April 2020 from 3.2% in April 2019. This high unemployment rate in the state contributes to the 14.7% unemployment rate in the entire United States.
- Minnesota small businesses employed 1.3 million people or over 40% of the entire private workforce in the state in 2017, showing us that the small businesses play a significant role in the Minnesota economy.
- However, the private sector employment decreased 14.1% during the 12-month long period from April 2019 to April 2020.
- The health care and social assistance industry leads with the most number of employees at 216,828, followed by the accommodation and food service industry with 151,886.
- As for the number of small businesses, the professional, scientific, and technical services industries lead with a total of 76,313 firms and followed by other services and construction with 64,837 and 55,304 firms respectively.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in Minnesota:
Why is it so important to check on business name availability?
Minnesota will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
What constitutes a small business in Minnesota?
Just like most of the states in the US, any firm with fewer than 500 employees is considered to be a small business whether it is a sole proprietorship, LLC, or corporation. With over 99% of all businesses being considered as small businesses in Minnesota, there are not a lot of large corporations located in the state.
How do you pay taxes as a sole proprietor in the state of Minnesota?
In Minnesota, sole proprietors must report all business income and losses on their personal income tax returns. Even if the business is a separate entity with a fictitious name, all the assets and liabilities of the company are considered personal. This means every personal debt and asset of the business, including your personal debts, are filed as one.
How can you get a small business grant in Minnesota?
Getting a small business grant is possible in the state of Minnesota. However, there are many prerequisites such as in-depth research and creating a full-proof feasibility study that covers financial projections that includes a balance sheet, income, and a cash flow statement.
The key is to identify your funding needs, which is why you need to complete this set of prerequisites and back your claims with sufficient data for investors to fund your small business. Getting money from lenders is quite complicated and you need to do the work. However, you can also incorporate with family, friends, and other investors to get sufficient funding for the small business you are planning to open.
Banks in Minnesota lend money to startups if they are fully satisfied with the business plan, so you might want to cover all corners and leave no stone unturned when creating a feasibility study and robust business plan.
How do I register to become an employer in Minnesota?
Registering for a business name and registering your business is different from registering as an employer. In Minnesota, you can register to become an employer online at the MN Dept of Revenue to receive a Tax ID Number in no time.
There are many third-party firms that can help you speed up the process, but you can do it yourself by completing a checklist. You will need to determine whether the worker is an employee, obtain a federal Employer Identification Number or EIN, get a Tax Identification Number, worker’s compensation insurance, unemployment insurance, and more, depending on the status of the employees.
If your employees are permanent residents of the United States, you will need to file a separate form and verify compliance with immigration law. Although it might sound a little bit complex, getting all the forms in line is not that difficult, especially if your business name and LLC are already registered before operating.
CHK_ YOUR NAME RIGHT NOW
Use our engine to quickly check your content right now!
