Registration with the Minnesota Secretary of State
Maintaining your business registration with the Minnesota Secretary of State (and all other states in which you do business in, if required) is essential. Generally all businesses have to file an annual renewal with the Minnesota Secretary of State. If you do not file the annual renewal, your business is “statutorily dissolved” by the Minnesota Secretary of State. If your business is “statutorily dissolved” your business does not exist. More importantly, your business loses its corporate/company veil, which is generally one of the primary reasons why you incorporated or organized your business.
While you can pay the reinstatement fee for your business and become undissolved that option is only available if your business name remains available. A competitor – or anyone – can grab your business name and file it with the Minnesota Secretary of State upon your business being statutorily dissolved. Therefore, the business name that you have spent money and time on and is your brand can be taken from you. More importantly, you do not have a corporate/company veil, which means that your personal assets are available for a judgment against the business.
Spangler and de Stefano, PLLP assists clients with maintaining registrations with the Minnesota Secretary of State. Make registering your business each year a priority. We recommend doing it at the same time that you file your tax returns.
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.