If you are establishing a Minnesota enterprise in any field, the first step on your journey involves choosing the most appropriate business structure. There are several structures to consider, including:
- Sole proprietorships This is an unincorporated business. Consequently, an owner is held personally liable for any debts incurred by the company.
- General partnerships Partnerships involve two or more people working together, usually bound by a formal partnership agreement and sharing the business debts and obligations.
- Limited partnerships and limited liability partnerships These are similar to general partnerships, with additional protective mechanisms limiting the financial liabilities of the partners by curbing the amount of personal assets they can use to meet their obligations or by shielding their personal liability entirely.
- A business corporation By establishing a corporation with a separate legal entity and a business purpose, owners shelter themselves completely from exposure to personal financial risks
- Limited Liability Company (LLC) An LLC is an entity that benefits from partnership taxation and corporate limitations on liability.
Making decisions about how to set up your business can be a complex process. It is crucial to consider taxation. Consult an experienced and efficient business lawyer at Hess & Jendro Law Office, P.A. for invaluable guidance about the most appropriate structure for your purposes and assistance with paperwork and other formalities.