Many questions arise before you form your LLC. Additional questions will arise after you form your LLC. Those questions will include:
- Where do I keep my business’s money?
- What other licenses do I need?
- Do I have to file anything else with the Minnesota Secretary of State?
- What if I don’t want the business anymore?
Business Bank Account and EIN
Once you submit the required papers to the Minnesota Secretary of State to register your business, you will want to open a bank account in your business’ name. If you have an LLC, which is a common type of business formation, and you do not keep your personal finances separate from your business finances, you may be personally liable for the actions of the corporation. Therefore, it is important to keep business finances separate from personal finances by using a business bank account.
You must call the Internal Revenue Service (“IRS”), answer a few questions, and the IRS will give you an Employer Identification Number (“EIN”). Sometimes this is also called your taxpayer identification number. A bank will require this number before opening a business account. The bank may also want the formation documents for your business. You may open a bank account in the business’ name in any state or country you wish. It does not need to be in Minnesota.
Renewing Your Registration with the Minnesota Secretary of State
You will need to renew your business registration annually. There is no cost to you in doing so. The Minnesota Secretary of State’s website contains the necessary form to renew your business. This process can be done in a short amount of time.
Quitting the Business
If you choose to simply quit your business and you are not selling it to someone else or doing some other kind of transfer you may consider doing nothing. If your business does not owe any debts to anyone you may do just that – nothing. Your registration will simply lapse if you do not renew it annually.
If you do owe money and you have maintained the limited liability for which your LLC was intended, you may also consider doing nothing. If you do not renew your registration annually and your business owes money your creditors will take what is left of the business. If you have destroyed your limited liability, however, either by mixing your business and personal funds or another error, and you let your registration lapse, your creditors may come after you personally as well.