When setting up a business in Minnesota, the first item to consider is determining the type of business you are wanting to set up. Two common types of businesses to set up are corporations and limited liability companies. When considering what type of business is right for you, a couple questions to ask yourself are: 1) Who will own the business? and 2) How much money will the business earn?
Here are a few basic components of a corporation and a limited liability company:
One or more persons can form a corporation in Minnesota and file Articles of Incorporation with the state. A corporation has a set organizational structure and pays corporate taxes. When incorporating a business, it becomes a legal entity that is separate from the individual(s) who founded it.
One or more persons can file Articles of Organization to set up a limited liability company (LLC). An LLC is a less complicated set up than a corporation that still protects its members against creditors. Any income generated by an LLC is taxed as personal income.
Consulting an attorney will help you best determine what type of business is going to work for you. You can call Ken Wasche today to discuss different business options and what will be the best route for you.