Whether a business owner opts to incorporate their company right away or after years of operation, creating a separate legal entity for the business offers many benefits. For those looking to incorporate in the North Star State, there are several essential steps:
Choosing the right name
Minnesota requires corporate names to:
- Be in English
- Contain the words “corporation,” “limited,” “incorporated,” “company,” “professional association,” “chartered,” or an abbreviation of one of these
- Avoid any suggestion that the corporation conducts an illegal business
- Be distinguishable from other corporate names already in use within the state
The Secretary of State’s office maintains a database of business names to help you ensure the name you want is not already in use.
Setting up a local office
Minnesota corporations must have a registered office located somewhere within the state. A post office box is not enough to satisfy this requirement.
Deciding on the number of shares
A company’s articles of incorporation must include the number of authorized shares of stock and how they are classified. No minimum quantity is required, nor is there an imposed maximum. The registration documents only require an indication of the total amount.
Filing and maintaining registration
In addition to filing articles of incorporation with the Minnesota Secretary of State, to get started, companies must file an annual registration to maintain their corporate status. Otherwise, the State can initiate an administrative dissolution of the company.
Submitting business activities reports
Minnesota corporations must also file annual business activities reports. Unless a business is exempt, failing to submit these reports to the Department of Revenue can have serious consequences.
To learn more about how your unique business venture could benefit from incorporating in Minnesota, consult an attorney experienced in business formation and incorporation.