Minnesota Professional Firms Act
If your business (aka professional firm) provides professional services in Minnesota, you must agree in your legal entity documents, filed with the Minnesota Secretary of State, to be subject to the Minnesota Professional Firms Act (“Act”). Generally, professional services mean the type of services that are provided under a license, registration, or certificate by the state of Minnesota. In addition to this requirement, before your business can provide professional services, your professional firm must first register with the board(s) having jurisdiction over the professional services that you are subject to under the Act. Subsequent to the initial registration, your professional firm must then, on an annual basis, on or before January 1, file an annual report with those same board(s).
The Act also restricts ownership of a professional firm. An owner has to be licensed, be a general partnership (other than a limited liability partnership), or other professional firm authorized to furnish at least one category of the professional firm’s pertinent services. In addition, an owner can be a voting trust or an employee stock ownership plan. Finally, the owner can be a sole ownership surviving spouse, of the deceased sole ownership professional, during the period of time ending one year after the death of the professional.
Now is the time to make certain that your professional firm is in compliance with the Act, has annually renewed your legal entity and assumed name, if any, with the Minnesota Secretary of State’s office, and has submitted its annual report to the professional firm’s governing board(s).
Spangler and de Stefano, PLLP represents professional firms and other business entity types and its owners.
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.