Minnesota LLC Tax Filing: Forms & Due Dates (2026)

Q: How is a Minnesota LLC taxed?

By default the IRS treats a single-member Minnesota LLC as a disregarded entity (reported on the owner's Schedule C) and a multi-member LLC as a partnership (Form 1065 federally, Form M3 for Minnesota). Profits pass through to the owners and are taxed on their Minnesota individual returns at 5.35% to 9.85%. An LLC can instead elect S corporation or C corporation treatment.

Q: What Minnesota tax forms does an LLC file?

A single-member LLC reports on the owner's Form M1 individual return. A multi-member LLC files Form M3, the Minnesota Partnership Return. An LLC that elected S corporation status files Form M8, and one taxed as a C corporation files Form M4, the Corporation Franchise Tax return. Sales tax is filed separately through the Department of Revenue e-Services system.

Q: Does a single-member LLC pay Minnesota income tax?

Yes, but at the owner level. A single-member LLC is disregarded for income tax, so its net profit flows onto the owner's federal Schedule C and Minnesota Form M1, where it is taxed at Minnesota's individual rates of 5.35% to 9.85%. The LLC itself files no separate Minnesota income tax return unless it elects corporate treatment.

Q: What is the Minnesota minimum fee for an LLC?

Partnerships, S corporations, and C corporations doing business in Minnesota owe a minimum fee when their Minnesota property, payroll, and sales total at least $1,250,000. Single-member LLCs (disregarded entities) are exempt. The fee is tiered, ranging from $260 at the lowest bracket up to $12,540 at the highest, and is reported on the entity return.

Q: Does a Minnesota LLC collect sales tax?

If the LLC sells taxable goods or certain services, it must register for a Minnesota Tax ID and a sales and use tax account and collect the 6.875% state general rate plus any local option taxes. Returns are filed monthly, quarterly, or annually through the Department of Revenue e-Services portal depending on the amount of tax collected.

Q: When are Minnesota LLC tax returns due?

For calendar-year filers, the individual Form M1 and the C corporation Form M4 are generally due April 15, while the partnership Form M3 and S corporation Form M8 are due March 15, matching the federal deadlines. Minnesota grants an automatic filing extension, but tax owed is still due by the original date.

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

A Minnesota LLC is taxed by default as a pass-through entity: a single-member LLC reports on the owner's federal Schedule C and Minnesota Form M1, while a multi-member LLC files Form M3, the Minnesota Partnership Return. Profits are taxed on the owners' Minnesota returns at 5.35% to 9.85%. An LLC can instead elect S-corporation or C-corporation treatment, and a C-corporation LLC pays Minnesota's 9.8% franchise tax.

Quick Answer

Default federal tax: Single-member = disregarded (Schedule C); multi-member = partnership (Form 1065)
Minnesota entity return: Form M3 (partnership), Form M8 (S corp), or Form M4 (C corp)
Owner income tax: 5.35%–9.85% on pass-through profit (Form M1)
Corporate franchise tax: 9.8% flat, if taxed as a C corporation
Sales tax: 6.875% state general rate, plus local option taxes
Agency: Minnesota Department of Revenue (state); IRS (federal)

How a Minnesota LLC Is Taxed

An LLC is not itself a tax classification. The IRS assigns every LLC a default federal tax treatment based on its number of owners, and Minnesota follows that federal classification for its own income tax. A single-member LLC is a disregarded entity - the IRS ignores it and taxes its income directly to the owner. A multi-member LLC is taxed as a partnership by default. Either kind can file an election to be taxed as a corporation. The choice you make (or accept by default) drives which returns you file, when they are due, and how much tax you pay. This guide explains each path for 2026; for the formation basics see how to form an LLC in Minnesota and the primer on what an LLC is.

Two agencies collect tax from a Minnesota LLC. The IRS collects federal income and self-employment tax, and the Minnesota Department of Revenue collects state income tax (through the owners or the entity), the corporation franchise tax, the minimum fee, sales and use tax, and withholding. The Secretary of State - where you filed your Articles of Organization - does not collect income tax; its only recurring requirement is the free annual renewal.

Federal Default Classification (Disregarded or Partnership)

Under Treasury Regulation 26 CFR 301.7701-3, an LLC with one owner is a disregarded entity and an LLC with two or more owners is a partnership, unless it elects otherwise. This default classification is the starting point for every LLC and determines your federal forms:

Single-member LLC. You report business income and expenses on Schedule C of your Form 1040. There is no separate federal business return. The net profit is also subject to self-employment tax (Social Security and Medicare) on Schedule SE.
Multi-member LLC. The LLC files federal Form 1065 (partnership return) and issues each member a Schedule K-1 showing their share of profit or loss, which the member reports on their personal return. See Form 1120 vs 1120-S vs 1065 for how the returns differ.

Because default LLC income is not subject to employer withholding, owners generally pay tax in advance through quarterly estimated taxes to both the IRS and Minnesota. Getting a federal EIN is the first step for a multi-member LLC, since Form 1065 requires one.

Minnesota Income Tax on Pass-Through Owners

For a default (pass-through) LLC, Minnesota does not tax the LLC on its profit; it taxes the owners. Each owner reports their share of LLC income on their Minnesota individual income tax return, Form M1, and pays tax at Minnesota's graduated individual rates. For 2026, those rates run from 5.35% in the lowest bracket to 9.85% in the highest, layered on top of federal tax.

A single-member LLC owner simply carries the Schedule C profit into their Minnesota taxable income. Multi-member LLC owners carry their K-1 share. Nonresident owners of a Minnesota LLC are taxed on the Minnesota-source share of the income, and the LLC may need to file composite tax on their behalf or withhold, discussed below. Because state tax is owed as income is earned, most LLC owners make Minnesota estimated payments alongside their federal ones.

The Minnesota Partnership Return (M3) and S-Corp Return (M8)

Even though a partnership does not pay income tax itself, a multi-member LLC still must file an informational entity return with Minnesota: Form M3, the Minnesota Partnership Return. Form M3 reports the LLC's Minnesota income, apportions it, computes any minimum fee, and reconciles amounts flowing to the members' K-1s. It generally tracks the federal Form 1065 and, for calendar-year filers, is due March 15, the same day as the federal partnership return.

An LLC that has elected S-corporation status files Form M8, the Minnesota S Corporation Return, instead of M3. Form M8 similarly passes income through to shareholders on Minnesota Schedule KS and computes the minimum fee. It is also due March 15 for calendar-year filers. Minnesota grants an automatic extension of time to file these returns, but any tax, minimum fee, or pass-through withholding owed is still due by the original deadline. For how the S election changes the overall picture, see S-corp vs LLC and LLC vs S-corp tax.

Electing S-Corporation or C-Corporation Treatment

An LLC can change its federal (and therefore Minnesota) tax treatment by filing an election with the IRS. To be taxed as an S corporation, the LLC files IRS Form 2553; Minnesota automatically follows the federal S election, so the LLC then files Form M8 in Minnesota. To be taxed as a C corporation, the LLC files IRS Form 8832 (and Form 1120 federally), which makes it subject to Minnesota's corporation franchise tax on Form M4.

Owners often consider the S election to reduce self-employment tax once profits are high enough to justify paying a reasonable salary, because only the wages - not the entire profit - bear payroll tax. The trade-off is added complexity: payroll, a separate return, and reasonable- compensation rules. There is no separate Minnesota election form; the state honors the federal choice. Read LLC or S-corp and the corporate return comparison before electing.

Minnesota Corporation Franchise Tax and the Minimum Fee

An LLC taxed as a C corporation pays the Minnesota corporation franchise tax at a flat 9.8% of Minnesota taxable income, reported on Form M4. For calendar-year corporations, Form M4 is generally due April 15, matching the federal Form 1120 deadline, with an automatic filing extension but tax still due at the original date. C-corporation LLCs face potential double taxation - once at the entity on profit, and again at the owner on dividends - which is why most small LLCs keep pass-through status.

Separately, Minnesota imposes a minimum fee on partnerships, S corporations, and C corporations doing business in the state. The fee applies when the entity's Minnesota property, payroll, and sales total at least $1,250,000, and it is tiered from $260 at the lowest bracket up to $12,540 at the highest. Single-member LLCs are exempt because they are disregarded entities, not partnerships or corporations. Most small multi-member LLCs fall below the $1,250,000 threshold and owe $0. The minimum fee is computed on Form M3, M8, or M4. See the full brackets on the Minnesota LLC cost page and the annual renewal and tax overview.

The Pass-Through Entity (PTE) Tax Election

Minnesota, like many states, offers an elective pass-through entity (PTE) tax as a workaround to the federal $10,000 cap on the state and local tax (SALT) deduction. A qualifying multi-member LLC (taxed as a partnership or S corporation) can elect to pay Minnesota income tax at the entity level on the owners' behalf. The entity deducts that tax federally, and the owners receive a matching Minnesota credit on their Form M1, effectively restoring the deduction the SALT cap would otherwise limit.

The PTE election is made annually on the entity's Form M3 or M8 and is generally irrevocable for that year. A single-member (disregarded) LLC cannot make the election, because it has no separate entity return. Whether the PTE election helps depends on each owner's federal situation, so most LLCs weigh it with a tax professional. Confirm current rules and the election mechanics on the Department of Revenue's pass-through entity tax page cited below.

Minnesota Sales and Use Tax

If your LLC sells taxable goods or certain taxable services, it must register for a Minnesota Tax ID and a sales and use tax account with the Department of Revenue before making sales, then collect and remit tax. The Minnesota state general sales tax rate is 6.875%, and many cities, counties, and special districts add local option taxes on top, so the combined rate at the point of sale is often higher. Use tax applies to taxable items you buy without paying sales tax and use in Minnesota.

Sales and use tax returns are filed electronically through the Department of Revenue's e-Services portal on a monthly, quarterly, or annual schedule, with the frequency set by how much tax you collect. Registration for a Minnesota Tax ID carries no state fee. If you also plan to operate under a different public name, note that a Certificate of Assumed Name (DBA) is a separate Secretary of State filing, not a tax registration. For which activities are licensed or permitted, see business licenses in Minnesota.

Employer Withholding and Owner Payments

If your LLC has employees, it must register for a withholding tax account and withhold Minnesota income tax from wages, in addition to federal employment taxes. An LLC that has elected S-corporation status and pays its owner a salary is an employer for this purpose and must run payroll. Withholding returns and deposits are filed through the Department of Revenue on a schedule tied to the amount withheld.

A multi-member LLC with nonresident owners generally must either pay Minnesota composite income tax for electing nonresident owners or withhold and remit tax on their Minnesota-source income, so that the state collects tax that nonresidents might not otherwise pay. Resident owners of a default LLC are not employees and instead cover their tax through quarterly estimated payments. For the broader filing workflow, see how to file business taxes and the business tax hub.

Minnesota LLC Tax Forms and Due Dates (2026)

The table summarizes the main federal and Minnesota returns by classification. Calendar-year deadlines are shown; fiscal-year filers shift accordingly. Minnesota conforms to the federal due dates and grants an automatic extension to file, but tax owed is due on the original date.

Classification	Federal return	Minnesota return	Due (calendar year)
Single-member LLC (disregarded)	Schedule C with Form 1040	Form M1 (owner)	April 15
Multi-member LLC (partnership)	Form 1065 + K-1	Form M3	March 15
LLC electing S corporation	Form 1120-S + K-1	Form M8	March 15
LLC electing C corporation	Form 1120	Form M4 (9.8%)	April 15
Sales & use tax	-	e-Services return	Monthly / quarterly / annual
Employer withholding	Forms 941/940	Withholding return	Per deposit schedule

Registering for an EIN and, where needed, a Minnesota Tax ID early makes each of these filings smoother. Keep your annual renewal current too - it is separate from tax filing but required to keep the LLC in existence.

Frequently Asked Questions

How is a Minnesota LLC taxed?

By default, a single-member LLC is disregarded and reported on the owner's Schedule C and Minnesota Form M1, and a multi-member LLC is a partnership filing Form M3. Owners pay Minnesota income tax at 5.35% to 9.85%. An LLC can elect S-corp or C-corp treatment; a C-corp LLC pays the 9.8% franchise tax. See S-corp vs LLC.

What Minnesota tax forms does an LLC file?

A single-member LLC reports on the owner's Form M1. A multi-member LLC files Form M3, an S-corporation LLC files Form M8, and a C-corporation LLC files Form M4. Sales tax is filed separately through the Department of Revenue e-Services portal.

Does a single-member LLC pay Minnesota income tax?

Yes, at the owner level. The LLC's profit flows onto the owner's Schedule C and Form M1 and is taxed at Minnesota's individual rates of 5.35% to 9.85%. The LLC files no separate Minnesota income return unless it elects corporate treatment. See single-member LLC.

What is the Minnesota minimum fee for an LLC?

It applies to partnerships, S corporations, and C corporations whose Minnesota property, payroll, and sales total at least $1,250,000, ranging from $260 to $12,540. Single-member (disregarded) LLCs are exempt. See Minnesota LLC cost.

Does a Minnesota LLC collect sales tax?

If it sells taxable goods or services, yes. It registers for a Minnesota Tax ID and collects the 6.875% state general rate plus local taxes, filing monthly, quarterly, or annually through e-Services. See business licenses in Minnesota.

When are Minnesota LLC tax returns due?

For calendar-year filers, Form M1 and Form M4 are generally due April 15, and Form M3 and Form M8 are due March 15, matching the federal deadlines. Minnesota grants an automatic filing extension, but tax owed is due at the original date.

Sources

Minnesota Department of Revenue - Partnership Tax (Form M3; multi-member LLC filing).
Minnesota Department of Revenue - S Corporation Tax (Form M8; Schedule KS).
Minnesota Department of Revenue - Corporation Franchise Tax (Form M4; 9.8% flat rate).
Minnesota Department of Revenue - Minimum Fee ($1,250,000 threshold; $260–$12,540 brackets; single-member LLC exempt).
Minnesota Department of Revenue - Income Tax Rates and Brackets (5.35%–9.85%).
Minnesota Department of Revenue - Individual Income Tax (Form M1; owner pass-through reporting).
Minnesota Department of Revenue - Sales and Use Tax (6.875% state general rate; e-Services filing).
Minnesota Department of Revenue - Pass-Through Entity (PTE) Tax (elective entity-level tax and credit).
Minnesota Department of Revenue - Withholding Tax (employer withholding registration).
Minnesota Statutes - § 290.06, Rates of Tax (individual and corporate franchise rates).
Legal Information Institute (Cornell) - 26 CFR 301.7701-3, Classification of Certain Business Entities.
IRS - Limited Liability Company (LLC) (default federal classification).
IRS - About Form 1065, U.S. Return of Partnership Income.
IRS - About Form 2553, Election by a Small Business Corporation (S election).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. This is general information, not legal or tax advice. Tax laws, rates, forms, and thresholds change; verify current requirements with the Minnesota Department of Revenue and the IRS before acting.