Get your business started with a good foundation. Make sure you know the best corporate form and operating structure for your business.Eric A. Rice
The first step to starting your business is typically to incorporate. Incorporation involves establishing a company, such as an LLC or corporation, that will act as the entity for your business venture. Just as a house is only as strong as its foundation, it is important that a business be incorporated properly to ensure minimal issues in the future. Eric Rice can help guide you through the incorporation process to get your business started.
Here are some common questions about incorporation:
What is the difference between an LLC and a corporation?
Both an LLC and a corporation offer limited-liability protection, which is an essential element for a company. However, an LLC is typically less formal and can offer simpler and more efficient tax options. A corporation typically has more complexity but can offer greater structure for management and governance and can allow for a greater variety of investors. The form that you choose typically depends on the ownership and management structure and potential investors.
What is a C-Corporation and what is an S-Corporation?
Both structures are governed by the laws applying to corporations. However, if a corporation meets certain requirements, it can elect to be taxed as a disregarded entity, which is an S-Corporation. Otherwise, the corporation will be taxed as a corporate entity, and there may be additional taxes when money is distributed to owners. The standard taxation is applies to a C-Corporation.
Should I incorporate in Delaware or Minnesota?
Historically, Delaware has been the default state for incorporation. Some of the reasons for this include the fact that Delaware has robust caselaw and business-friendly laws. However, many other states, including Minnesota now offer very similar corporate environments, so the difference between incorporating in Minnesota or Delaware is typically minimal. However, an attorney could give you specific advice about the differences between the states and ensure that you make the best decision for your business.
Eric Rice handles incorporation regarding the following issues:
- LLC formation
- Corporation formation (S-Corporation and C-Corporation)
- Assumed Names
- Articles of Organization and Articles of Incorporation
- Buy-Sell Agreements
Incorporation is an important first step to starting a business. Ensure that you start things with a good foundation by contacting St. Paul business lawyer Eric Rice for a free consultation. Call Eric today at (651) 998-9660.