Simplify and Cheapen the Processes of Creating a Business Through the Designation of LLC, Inc, and Ltd.

 

The purpose of this bill is to encourage entrepreneurship and economic liberty by lowering the price of officially

registering a company.

It is important to note that all benefits of this bill cannot, under any circumstances apply to businesses deemed as

“High risk industries” as defined in the definitions page.

Act 1:

The Minnesota Secretary of State shall reduce the filing fee of an LLC, INC or LTD business from 155 dollars to 20

dollars in-person. Mail in requests shall be lowered from 135 dollars to 25 dollars. However, filing fees for those

Economically Disadvantaged (see definition) will be free for the first business and will expand to the normal rate for

any other businesses afterwards.

Act 2:

The Minnesota Department of Commerce will be expected to lower the annual renewal fee of an LLC, INC, or LTD business to

0 dollars. An annual report on such businesses by mail will be made unnecessary, but in doing so a 3% income tax rebate

will be issued for the end of the fiscal year or if the business is closed. Such rebates will be sent through mail.

Act 3:

Local governments (district counties) may not impose any additional regulations or restrictions on these businesses.

Such regulations can only be imposed by state or federal level.

Act 4:

The Minnesota Department of Commerce is to be expected to lower Minnesota State income tax from 6.8 % to 2.2% for single

filing Small Business owners (see definition). With incomes below 20 grand per year, State income tax on business owners

will be lowered to 0% for 1 year.

 

According to Ramsey finance, almost half (49%) of all Americans are living paycheck to paycheck. Of those half, almost

70% are struggling to put food on the table. This is obviously a big issue in the US.

Instead of proposing inefficient subsidies and passing outdated socialist bills, we should work on providing Minnesotans

the tools they need to create a living instead of giving them meaningless handouts.

A big part of this means encouraging entrepreneurship as much as we can; limiting registration fees, cutting taxes for

small business owners, and removing useless regulations.

On passage, this bill will shrink economic dependence and promote financial freedom.

 

“Small business” is defined upon by the Office of Revisor of Statutes, STATUTES, CONSTRUCTION chapter 645, section 44,

subdivision 2, quote, “Small business. ‘Small business’ means a business entity organized for profit, including but not

limited to any individual, partnership, corporation, joint venture, association or cooperative, which entity:

(1) is not an affiliate or subsidiary of a business dominant in its field of operation; and

(2) has 20 or fewer full-time employees; or

(3) in the preceding fiscal year has not had more than the equivalent of $1,000,000 in annual gross revenues; or

(4) if the business is a technical or professional service, shall not have had more than the equivalent of $2,500,000 in

annual gross revenues in the preceding fiscal year.

“High Risk Industry” Any one of the following industries:

Online Gambling

Banking

Automobiles

Law firms

“Economically disadvantaged” An individual with earnings below 45,000 dollars annually after tax.

 

N/A

 

Dishonesty about income in the attempt to lower taxes is tax evasion and is punishable by 50% added tax on the attempted

refund plus 50% added tax of any understated tax.

 

The Entrepreneurial freedom act will be effective January 1st, 2025 upon passage.