Minnesota Business Identity Theft Protections
September 1, 2026 | Carole Clark Isakson
Identity theft is a nationwide problem not just for individuals, but also for businesses. Because of the ease with which an inactive entity can be reactivated at the state level, third parties can take advantage of this for their own benefit and at the expense of the actual entity and its owners. The Minnesota Secretary of State’s Business Services Division has also found that entities have been formed using the name and address of a person without that person’s consent.
The primary goals of those engaging in business identity theft are twofold: the use of the entity to apply for credit applications (affecting the good credit of a business or an individual) and soliciting or entering into contracts with unsuspecting victims. These activities may occur without the knowledge of the dormant company’s owners. Prior to January 1, 2026, the only way an injured party could stop these actions and extricate itself from the situation was a court action, which could take many months and incur significant costs. In some cases, assistance was available from law enforcement.
On May 23, 2025, Governor Tim Walz signed the Business Filing Fraud Prevention Act into law, which law went into effect earlier this year. Senator Matt Klien noted at the time that “This bill protects the integrity of Minnesota’s business records and gives victims of fraud a real remedy”. Modeled after Colorado’s approach, the Business Filing Fraud Prevention Act created a process where business owners are able to report wrongful filings to the Office of the Minnesota Secretary of State, which will investigate and terminate filings if they are found to be fraudulent. The new process allows victims of (Minnesota) business identity theft to file a complaint directly with the Minnesota Secretary of State through their Business Identity Recovery process. Filings may be declared fraudulent by the SOS in as few as 21 days.
Our business practice group here at Barna, Guzy, & Steffen is dedicated to staying informed and serving our clients’ best interests. See our prior blogs on a variety of business matters. If you have questions regarding your Minnesota business entity, including partnerships, limited liability companies, and corporations, our experienced attorneys are ready to assist you. Please contact your attorney directly, email us at: info@bgs.com or call us: (763) 780-8500. We look forward to connecting with you!