Minnesota. The birthplace of the phrase "holy cow", masking and Scotch tape, Wheaties cereal, the pop-up toaster, the Snickers and Milky Way bars, Bisquick, HMOs, the bundt pan, Aveda beauty products, Spam and Green Giant vegetables. You house the country's largest regional theatre, dinner theatre, sculpture garden and ear of corn. You've been home to Laura Ingles Wilder, Kevin Kling and Frank C. Mars. Way to go, Minnesota. Especially for a state boasting frigid winters that have Eskimos counting their blessings.
Minnesota is also an extremely creative and welcoming state in which to register your small escort business, and in this article you'll find clear step-by-step advice on how to do just that. For more information on why it's vitally important to register your business,refer to our article Don't get busted for tax evasion: Why registering your escort business is the only option.
For some helpful advice on picking out a business name, visit Business.gov
Step four: Register your business / business name
Sole Proprietorship:
In Minnesota you are not required to register your sole proprietorship escort business as a separate business entity: because the business is you, it is not recognized as a separate business and you'll file your business information along with your own personal taxes.
You are also not required to register your business name if it is your full name and service: "Jane Doe's Escort Service". However, if you take on any other form of a DBA name, including something as simple as "Doe's Escort Service", you must register a Certificate for Assumed Name Registration Form. This is submitted to the Minnesota Secretary of State and requires a $25 filing fee.
For more information on if taking on a DBA is a good choice for your business, refer to our article Do I want to be a sole proprietor?
Partnership:
In Minnesota you are not required to register your general partnership business as a separate business entity. However, it is highly recommended that you draft a partnership agreement. This is not filed with the state but defines and protects your business should you run into legal trouble. And you will have to file an information return come tax time, so having your books in order is very important. More on that below.
You are also not obligated to register your business name in Minnesota if it is the collected names of the partners outlined in your partnership agreement. But if you choose to take on a DBA name you must register a Certificate for Assumed Name Registration Form. This is submitted to the Minnesota Secretary of State and requires a $25 filing fee.
Corporation:
To register your escort corporation in Minnesota you'll need to file your Articles of Incorporation with the Minnesota Secretary of State. You can find instructions and download this form at the Minnesota Secretary of State: Document Central. You'll include information on the amount of shares for the corporation and the incorporating persons, and include a $160 filing fee. Because of the intricate information required when starting a corporation, it is highly recommended that you seek advice from a business lawyer and accountant.
Registering your Articles of Incorporation will register your business name, so you will not have to file any additional paperwork for this.
LLC:
To register your escort LLC in Minnesota, you'll need to file your Articles of Organization with the Minnesota Secretary of State. You can find instructions and download this form at the Minnesota Secretary of State: Document Central. The form includes basic information about the members and managers of the LLC, and requires a $160 filing fee.
Registering your Articles of Organization will register your business name, so you will not have to file any additional paperwork.
For more information on these business structures and their requirements, visit Minnesota Secretary of State: Starting a Business.
Step six: Register for your federal and Minnesota state taxes
There are a few basic types of taxes small businesses in Minnesota may register for.
- Individual Income Tax: If you're a sole proprietor or LLC, you'll file your business profits/losses in a Schedule EZ form that will go along with your personal income tax 1040 form. For more information go to IRS.gov. You can also find more forms and information at the Iowa Department of Revenue—Individual Income Tax Forms.
- Business Taxes: Businesses in Minnesota have to pay corporate taxes. Partnerships must file a Partnership Tax Return and corporations must file a Corporation Tax Return. More information, online filing and downloadable forms can be found at the Minnesota Department of Revenue.
- Unemployment Insurance: All businesses with employees pay unemployment insurance to safeguard the state's unemployed. More information, online filing and downloadable forms can be found at Minnesota Unemployment Insurance.
- Withholding Taxes: Employers must withhold taxes from employees for their personal income taxes. More information, online filing and downloadable forms can be found at the Minnesota Department of Revenue—Withholding Tax.
- Workers Compensation: If you have employees, you'll have to pay Worker's Compensation. More information can be found at the Minnesota Department of Labor and Industry: Workers' Compensation.
- Self-Employment Taxes: If you own and operate your business and are not paid as an employee, you'll need to file your own self-employment taxes for social security and Medicaid. This is particularly true for sole proprietorships, general partnerships and LLCs. You can find this Schedule C / 1040 form and get more information at IRS.gov.
For more information on registration and taxes in Minnesota visit the Minnesota Department of Revenue.
Step seven: Get necessary licenses and permits
There's no specific "escort license" in Minnesota, and chances are you won't need any other permits to conduct your escort business, but it's a good idea to familiarize yourself with the License Department at Minnesota North Star and run your city through the IRS's Permit Me tool to get more information about specific filing from their site.
More information about registering an escort business in Minnesota
The state of Minnesota is extremely generous in clear, useful online resources provided to help you start your own business. While the guidelines above are meant to give you a helpful checklist when considering how you are going to register your escort business, it is highly recommended that you familiarize yourself with the resources below, and download and read the chapters on the business model that you choose. They will give you an even more straightforward approach to registering your small escort business in Minnesota. And most of the forms can be filled out and filed online, or in person at your local office.
Further resources on starting a business in Minnesota
Find out how to register an escort business in each state of the USA.
Related resources:
Please note: Dating.com is not a legal service, nor are we tax advisors or accountants. We do offer you what we consider our best advice, but if at all in doubt, please consult a professional.
