Minnesota LLC vs New Mexico LLC (2026)
Written for owners based in Minnesota.
Verdict: for most owners, form where the business is based
No annual or biennial report is required of a New Mexico LLC, so $50 is the entire lifetime state cost for a default-classified company, and members are not named publicly. Minnesota charges $155 plus a free renewal that still has to be filed each December 31. The absence of a report cuts both ways: nothing prompts you annually, and an LLC that quietly loses its registered agent can be revoked with no missed filing to warn you. For an owner based in Minnesota, $185 of foreign registration reverses the $105 saving.
Based in New Mexico? Read New Mexico LLC vs Minnesota LLC →
Compare Minnesota LLC vs New Mexico LLC on filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
By Edmond Hui · Last updated: October 1, 2026
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| Factor | Minnesota | New Mexico |
|---|---|---|
| Filing Fee | $135 by mail, $155 online or in person | $50 |
| Processing Time | Not published by the state | Not published by the state |
| Annual Report Fee | $0 | None |
| Annual Report Due | December 31 | None required |
| State Income Tax | Yes | Yes |
| Anonymous LLC | No | Yes |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A, you're in your home state | $185 + registered agent ~$150/yr |
Full fee breakdown for either state: Minnesota LLC cost and New Mexico LLC cost. Owner privacy options for either state: Minnesota anonymous LLC guide and New Mexico anonymous LLC guide.
Business Climate: Minnesota vs New Mexico
| Factor | Minnesota | New Mexico |
|---|---|---|
| 5-year business survival rate | 54.9% (#6 of 51) | 46.3% (#46 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | +6.5% YoY (#29 of 51 by volume) | +12.6% YoY (#37 of 51 by volume) |
Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)
Compare LLC Costs: Minnesota vs New Mexico
Minnesota
New Mexico
A figure shown as "from" is the least the state can charge, not a price. Tennessee's report is $300 for up to six members and $50 for each member above six, its franchise tax is the greater of $100 or 0.25% of Tennessee net worth, Wyoming's report is the greater of $60 or $.0002 per dollar of in-state assets, Kentucky's entity tax is $175 up to $3 million of gross receipts and graduated above it, and New York's annual filing fee is graduated on New York source gross income. A total that contains one of those is shown as "from" for the same reason. Costs include every mandatory state charge: the filing fee, the report fee (annualised where a state files biennially), any state entity-level tax shown in its own row above, a one-time publication cost where the state publishes a rate for it, and any one-time registration charge a state requires before the LLC may trade. Two exclusions follow from that wording. Arizona and Nebraska require publication and publish no rate, so no newspaper cost is carried for either and their totals are not the whole cost. Alaska's $50 annual state business licence is a separate charge from the Secretary of State fees and is not carried here either. Annualising makes the 1, 3 and 5 year rows a cost of ownership rather than a payment schedule: a biennial state charges its whole report fee in the years it falls due and nothing in between. Entity-level taxes that only apply after a corporate election, or above an owner or income threshold, are excluded and flagged on the state's own cost page. New York's publication cost is carried at a $250 floor, roughly $200 of newspaper cost in a low-cost county plus the $50 Certificate of Publication fee. No county-clerk-designated New York City newspaper publishes a rate card, so the four-figure NYC estimates in wide circulation cannot be traced to a primary source and are not asserted here; budget for materially more than the floor if you file in a NYC county. Every fee was verified against the state's own fee schedule, statute, or revenue authority on 29 July 2026. Excludes registered agent and legal fees. For informational purposes only, not legal or tax advice.
Filing Fees & Formation Costs
Minnesota charges $155 to form an LLC, while New Mexico charges $50. New Mexico is $105 cheaper upfront. The cost that usually gets overlooked: if you form in New Mexico but operate in Minnesota, you must also register as a foreign LLC in Minnesota (a $185 filing) and maintain a registered agent in New Mexico (typically around $150 per year). That puts the realistic first-year cost of the New Mexico route at roughly $385, versus $155 for simply forming in Minnesota. Speed isn't a basis for choosing between them: neither Minnesota nor New Mexico publishes a standard processing time, so any figure comparing the two is guesswork.
Taxes: Minnesota vs New Mexico
Both Minnesota and New Mexico levy a personal income tax on pass-through business income, and your LLC's profits will be taxed where you live and operate. Forming in New Mexico doesn't change what a Minnesota-based owner pays. Minnesota levies a graduated individual income tax (four brackets, 5.35% to 9.85%) on wage and pass-through business income, administered by the MN Department of Revenue. No franchise tax, but LLCs taxed as partnerships or S corporations owe Minnesota's 'minimum fee' (tiers starting at $250) if the sum of Minnesota property, payroll, and sales/receipts is at least $1,250,000 (inflation-adjusted); single-member LLCs reporting on the owner's Form M1 are exempt.
Privacy & Asset Protection
New Mexico allows anonymous LLC formation. Member and manager names don't appear on routine public filings. New Mexico's Articles of Organization require only the organizer and registered agent, and LLCs file no annual report, so members and managers stay off public filings. Minnesota doesn't offer that same privacy. Minnesota's Articles of Organization require only organizer names, but under Minnesota law the mandatory annual renewal must include the name and business address of 'the manager of a limited liability company, or chief executive officer,' so at least one governing person appears on a routine public filing. Both states provide charging-order protection for LLC members, and for most small businesses the practical difference in asset protection between the two is minimal. One important caveat: if you register your New Mexico LLC as a foreign LLC in Minnesota, that Minnesota registration is itself a public record, which can undercut much of the privacy benefit for a business that operates in Minnesota.
Annual Maintenance Costs
Minnesota LLCs file a free annual report (due December 31), and New Mexico LLCs file no annual report at all. If you form in New Mexico while operating in Minnesota, you maintain filings in both states, New Mexico asks for no report, but Minnesota still wants its equivalent for your foreign registration, and pay a New Mexico registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the New Mexico route to roughly $150 a year, versus about $0 to keep a domestic Minnesota LLC in good standing. The tax inside those totals: No franchise tax, but LLCs taxed as partnerships or S corporations owe Minnesota's 'minimum fee' (tiers starting at $250) if the sum of Minnesota property, payroll, and sales/receipts is at least $1,250,000 (inflation-adjusted); single-member LLCs reporting on the owner's Form M1 are exempt.
When New Mexico Actually Makes Sense
Forming in New Mexico makes sense in a few specific situations: you need anonymous ownership. Minnesota puts owner or manager information on public filings and New Mexico doesn't (usually via a holding company, since operating in Minnesota still requires a public foreign registration there), your business genuinely operates in New Mexico, with a real office, employees, or property there, or you're relocating to New Mexico in the near future. For a typical small business based in Minnesota, none of these usually apply. Registering a New Mexico LLC to do business back home means $185 in Minnesota foreign-registration fees, on top of New Mexico's $50 formation fee, while Minnesota's own annual report stays free to file and is due December 31. When in doubt, form where you actually do business.
Frequently Asked Questions
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Sources
Each entry below is a document recorded in our verified sources, and each entry says what the document is. Some statutory text is read from an accurate mirror rather than from the state's own host, and those say so. Where we hold the citation but no stable public link, the citation is printed on its own rather than pointed at a guessed address.
- Minnesota statute: Minn. Stat. § 322C.0201 (articles of organization contents)
- Minnesota statute: Minn. Stat. § 5.34(a)(5) (annual renewal contents)
- sos.mn.gov/business-liens/business-forms-fees/minnesota-limited-liability-company-forms/Minnesota Secretary of State: business entity filings
- sos.mn.gov/media/2851/businessentityfees.pdfMinnesota LLC filing fees
- sos.nm.gov/business-services/New Mexico Secretary of State: business entity filings
Edmond Hui · Founder, MyStateLLC
Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.