Minnesota Limited Liability Company Formation
Creating a Minnesota LLC gives business developers advantages in the areas of taxation, personal asset protection, ease of set up and operation, low annual filing fees, and more.
* Meeting Business Development Goals. A Minnesota LLC will provide business developers and entrepreneurs like you with a corporate form of organization to meet most of the operating needs of early stage to mid-sized companies.
* Unique Corporate Tax Exempt Status. Your Minnesota LLC is considered a tax exempt "pass through" entity in terms of state and federal tax law. Profits and/or losses of your Minnesota LLC are reported on the personal returns of your Minnesota LLC members. In determining your Minnesota LLC year-end "bottom line" position, you can legally deduct qualifying operating costs and expenses, along with your Minnesota LLC taking advantage of the federal rule for depreciating assets as recorded on your Minnesota LLC balance sheet.
* Qualifying For Personal Asset Protection. Once that your Minnesota LLC formation documents have been approved by the state, then your Minnesota LLC immediately qualifies for all the benefits and protections offered under Minnesota state law. Chief amongst these benefits is the shielding of your members' personal assets ( bank deposit, securities, real property, auto, etc.) from your Minnesota LLC corporate liabilities and actions. Bottom line, your Minnesota LLC members' liability is strictly limited to invested capital.
* Benefits - Raising Investor Capital And Bank Finance. A Minnesota LLC offers significant advantages in terms of ownership and capitalization. In contrast with a Subchapter S corporation which is statutorily limited to 75 shareholders, your Minnesota LLC can establish is capitalization needs and then provide ownership interests to an unlimited number of investor-members (which can include persons, trusts, pensions or even other LLC corporation entities) via your Minnesota LLC private placement financing agreement.
Once initial capitalization has occurred, your Minnesota LLC managers can then move into the market and negotiate secondary financing or obtain credits, just like other companies do, in order to manage the growth of your Minnesota LLC.
* Simple, Low Cost Effective Corporate Governance. Your Minnesota LLC create a flexible corporate governance environment for you. Unlike a standard corporation which by law must conduct annual meetings and produce written meeting minutes, your Minnesota LLC operates under no such standard, rather your Minnesota LLC can determine its own meeting and reporting requirements as set forth in your Minnesota LLC operating agreement.
* Flexible Dividend Guidelines. Your Minnesota LLC gains additional flexibility over other corporate forms in the area of dividend policy. Whereas a standard corporate form must declare a dividend on a dollar-per-share rule basis, your Minnesota LLC can set its own dividend policy as set forth in your Minnesota LLC operating agreement between your members.
* Recognition By All 50 States. Furthermore, your Minnesota LLC is a recognized legal corporate form by all fifty US states. In electing your Minnesota LLC, you establish the legal platform for commencing business operations within Minnesota, as well your Minnesota LLC will receive the public sector support from the Minnesota Secretary of State.