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Corporate Formation Tips for Business Owners

Tip 1:

Are you aware that prior to forming a corporation, you should seek the advice of a business accountant to make certain that you are choosing the best type of structure for your business from a tax standpoint? Best practice is working with your business accountant and business attorney to make certain that your business structure provides the best protection.

Tip II:

Are you aware that the designation of a corporation to what is referred to commonly as a S-Corp is that the S-Corp status is a tax designation that you must separately apply to obtain from the Internal Revenue Service?  Make certain that you know who is going to request the S-Corp designation as there are strict timelines as to how long you have to file for the S-Corp designation after your entity is formed.

Tip III:

Are you aware that certain professions in their Articles of Incorporation or Articles of Organization have to agree to be governed by the Minnesota Professional Firms Act? Make certain that your business was properly formed, including under the Minnesota Professional Firms Act, if applicable.

Tip IV:

Are you aware that simply filing your Articles of Incorporation or Articles of Organization with the Minnesota Secretary of State is only the first of many steps to properly forming your legal entity (i.e., LLC, Corp., etc.)? Make certain that your business is properly formed so that your personal assets are protected in the event of a judgment against your business.

Tip V:

Are you aware of the impact to your LLC that was formed under the “old LLC Act” when the “new LLC Act” automatically applies to your LLC as of January 1, 2018? Make certain that you will not have any surprises regarding your LLC as your LLC is automatically now subject to the new LLC Act.

Tip VI:

Are you aware that the benefits of having a corporation may be for naught if your business is not following corporate formalities? Make certain that you are following corporate formalities so that you retain all the benefits of having a corporation.

Tip VII:

Are you aware that properly forming your business is important so that you have all of the protections of your corporate entity? Make certain that you are consulting with an experienced business attorney and business accountant in forming your business.

Spangler and de Stefano, PLLP represents businesses (for-profit and non-profit) regarding formation of a legal entity, including corporations (C-Corps and S-Corps), Limited Liability Companies (LLC), partnerships, joint ventures, cooperatives, etc.

The material contained herein is for informational purposes only, and is not intended to create or constitute an attorney-client relationship between Spangler and de Stefano, PLLP and the reader. The information contained herein is not offered as legal advice and should not be construed as legal advice.