Income and Franchise Taxes | Minnesota Business Registration

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Due dates to file annual Minnesota tax returns

  • Form M1, Individual Income Tax
    • Due April 15, or the 15th day of the fourth month after the end of tax year
    • Sole proprietors report income on their individual income tax return
  • Form M8, S Corporation Return
    • Due the 15th day of the third month after the end of the tax year
  • Form M3, Partnership Return
    • Due the 15th day of the fourth month after the end of the tax year
  • Form M2, Income Tax Return for Estates and Trusts (Fiduciary)
    • Due the 15th day of the fourth month after the end of tax year
  • Form M4, Franchise Tax (Corporation)
    • Due dates vary
  • Corporations, other than S corporations, that do business or own/ lease property in Minnesota.
    • Due the 15th day of the third month after the end of the tax year
  • Cooperative associationsother than IRC section 521 organizations
    • Due the 15th day of the ninth month after the end of the tax year
  • Limited liability companies (LLCs)that are taxed as corporations for federal purposes
    • Due the 15th day of the third month after the end of the tax year.
  • Form M4NP, Franchise Tax for Non- profit Organizations
    • Due dates vary.
  • Exempt organizationswith unrelated business income filing federal Form 990-T
    • Due the 15th day of the fifth month after the end of the tax year.
  • Farmers’ cooperatives, as defined in IRC section 521, filing federal Form 990-C
    • Due the 15th day of the ninth month after the end of the tax year.
  • Homeowners’ associationsfiling federal Form 1120-H
    • Due the 15th day of the third month after the end of the tax year.
  • Political organizationsfiling federal Form 1120-POL
    • Due the 15th day of the third month after the end of the tax year.

Who must register for income tax?

If you are a sole proprietor, there is no need to preregister to file an annual Minnesota Individual Income Tax Return. However, when required, returns must be filed using your Social Security number.

S corporation

If you have elected to be taxed under Subchapter S of the Internal Revenue Code (IRC) section 1362 and you’re doing busi- ness or own property in Minnesota, you must register to file Form M8, S Corporation Return.

The entire share of your income is passed through to the shareholders, regardless of whether the income is actually distributed. The shareholders must then include their share of income on their tax returns.

The S corporation taxes and minimum fee are paid by the S corporation. The mini- mum fee is determined on Form M8.

Partnership

If you are a partnership required to file federal Form 1065 or 1065-B and you have Minnesota gross income, you must register to file Form M3, Partnership Return.

The entire share of your income is passed through to the partners, regardless of whether the income is actually distributed. The partners must then include their share of income on their tax returns.

A minimum fee is paid by the partnership and is determined on Form M3.

Estate or trust (fiduciary)

If you are a trustee of a trust or a personal representative of an estate that has $600 or more of Minnesota gross income and you’re required to file federal Form 1041, you must register to file Form M2, Income Tax Return for Estates and Trusts (Fiduciary). A fiduciary can also be a guardian, receiver, conservator or any other person acting in a fiduciary capacity for a person.

Who must register for franchise tax?

Corporate franchise

If you are taxed as a corporation by the IRS and you transact business or own property in Minnesota, you’re required to register to file M4, Corporation Franchise Tax.

The franchise tax on corporations includes a minimum fee, the regular tax and the alternative minimum tax.

Franchise tax for nonprofit organizations

If you are an organization with activities in Minnesota and you’re required to file fed- eral Form 990-T, 990-C, 1120-H or 1120- POL, you must register to file Form M4NP, Franchise Tax for Nonprofit Organizations.

Tax is based on your federal taxable income assignable to Minnesota.

After you register

Once you are registered for the applicable income or franchise tax, the department will send you a confirmation letter indicating your Minnesota tax ID number.

This post is part of a series of posts on the Minnesota business registration process. For more information on how to register a business in Minnesota, contact an experienced business attorney.

CREDIT: The content of this post has been copied or adopted from the Minnesota Department of Revenue’s Minnesota Application for Business Registration Instruction Booklet.