There are multiple steps involved in the process of starting a business. While many owners may be well-versed in the concepts of forming a business plan, obtaining a location, and arranging for the production of a product, many people still require help navigating the legal aspects of creating a business.
The truth is that there are multiple forms of businesses, each with their own drawbacks and benefits. Choosing the proper form can affect not just your company’s structure, but also how the company distributes profits and deals with debt.
A Minnesota business formation lawyer could help you take the steps necessary to properly start your company. A well-versed business attorney could handle the legal aspects so you can focus on earning a profit.
Registration Requirements in Minnesota
Every business entity must register with the Secretary of State. This allows the state to track the legal obligation of businesses. It also allows customers and partners to locate a company’s officers.
Registering a company in Minnesota is now an online process. Even so, an owner must be prepared to answer essential questions concerning their company. These include who the legal face of the company will be and a potential name. In addition, many forms of business registrations require other forms of paperwork as well. For example, a traditional corporation structure will require the registering party to submit the articles of incorporation that include information about stock, the board of directors, and business purpose.
A Bloomington business formation lawyer could help to guide individuals through the registration process. This includes taking the preliminary step of choosing a business structure that best fits their goals moving forward.
Possible Business Structures
Businesses have different legal obligations. While the traditional form of a business is the old-fashioned, corporation model, modern business law allows people to form alternative types of entities. Each of these entities comes with their own benefits and obligations.
For smaller companies or those that owners intend to run as sole proprietorships, it may be best to form the business as a limited liability company, or LLC. The most direct advantage is that an LLC is a separate legal entity from the owner. In other words, if the company faces legal trouble, a court generally cannot require the owner to personally pay those debts. All debts are the sole property of the business. Other advantages include:
- No need to hold shareholder meetings
- Tax advantages, such as paying pass-through taxes
- Modifiable profit structures
Of course, an LLC structure may not be best for everyone. Minnesota businesses may also be formed as partnerships, non-profit corporations, or traditional corporate structures. A Bloomington company formation lawyer could help a person choose a business structure that best fits their goals.
A Minnesota Business Formation Attorney Could Be a Guide
One major part of starting a business is choosing a company structure. A Bloomington business formation lawyer could help you to choose the business structure that is best for you. They can also help you gather and create the documentation necessary to register your company with the Secretary of State. Call today today to learn more.