Side-by-side comparison of Limited Liability Company and S Corporation for Minnesota businesses. See costs, tax treatment, and which structure fits your situation.
| Feature | LLC | S-Corp |
|---|---|---|
| Filing fee (Minnesota) | $155 | $155 |
| Annual fee | $0/yr | $0/yr |
| Liability protection | Yes | Yes |
| Self-employment tax | On all profit | Salary only |
| Formation complexity | low | medium |
| Ongoing complexity | low | medium |
| Can raise funding | Limited | Limited |
Pros
Cons
Pros
Cons
⚠High top marginal income tax rate of 9.85%
Our free quiz calculates your actual tax burden under each entity type based on your income and Minnesota tax rates.
Take the QuizLimited Liability Company: Liability protection with pass-through taxation. The most popular choice for small businesses. S Corporation: An LLC or Corp with an S-Corp tax election. Splits income into salary + distributions to reduce self-employment tax. In Minnesota, LLC filing costs $155 and S-Corp costs $155.
S-Corp is generally better for taxes at higher incomes because you only pay self-employment tax on your salary, not distributions. LLC pays self-employment tax (15.3%) on all profit. Use our free quiz for exact numbers.
LLC filing fee: $155, annual fee: $0/year. S-Corp filing fee: $155, annual fee: $0/year.
Disclaimer
This comparison is for educational purposes only and does not constitute tax, legal, or financial advice. Filing fees, tax rates, and regulations may have changed since this data was compiled. Verify all information with the Minnesota Secretary of State and consult a qualified CPA or tax attorney before making entity selection or tax election decisions.
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