Hennepin County Business Formation Lawyer
Strong Foundations for New and Growing Businesses
One of the most common mistakes many small businesses make is failing to consult a skilled lawyer before launching a new enterprise. Even so, in today’s economy and with the seemingly never-ending changes to business laws, the most practical way to protect your interests is to hire a Minneapolis small business attorney who can offer the legal protection you need to manage your company successfully.
Contact Barbosa Law Group PLLC today to schedule a free consultation and discuss how we can protect your interests.
Should I Form an LLC or an S Corp?
A common question among new small business owners is whether to form an LLC or an S Corp. Choosing between these two business structures can be challenging, but most new entrepreneurs start with an LLC. As their business grows and becomes more profitable, business owners elect S Corp tax status for their LLC. LLCs offer greater flexibility, while S corporations are subject to strict ownership requirements.
Can an LLC be a Non-Profit?
Minnesota state law allows an LLC to be a nonprofit, but doing so requires very strict state requirements. The nonprofit corporation model is ideal as it is considered the gold standard for tax exemption and charitable fundraising.
These business entities, which operate as non-profits, differ from standard non-profits and any deviation from the rules that govern them. For example, many individuals with good intentions make critical errors that could jeopardize their non-profit status, such as paying dividends to members who are not also members of other non-profits or government entities.
Structuring an LLC as a non-profit requires the help of a skilled attorney to ensure that your LLC does not draw unnecessary and time-consuming state and federal scrutiny.
What Happens if My Partner Dies or Wants to Retire?
Imagine you have started a business and your partner suddenly dies or decides to retire. If you do not have a partnership agreement in place, you could face the business being dissolved automatically under state law or a mandatory buyout.
Minneapolis small-business attorneys recommend that anyone starting a business with someone else seek legal guidance to draft a comprehensive partnership agreement. A comprehensive agreement can lay out all the rules before a “triggering event” occurs, reducing the risk of unnecessary litigation.
Contact Barbosa Law Group PLLC; The Right Choice for Your Legal Needs
No matter what type of business you may be planning to start, your first step should be to consult a business formation attorney who can inform you of your legal options. Understanding your legal options and responsibilities is critical to your success amid the ongoing changes in business law and the economy.
Barbosa Law Group PLLC is a Minneapolis law firm dedicated to helping clients start their businesses and rest assured that they comply with all state and federal regulations. If you have questions about how we can help you build your new business, contact our law firm today at 612-887-9286 to schedule a consultation.