Minnesota Incorporation: Everything You Need to Know
Minnesota incorporation is the process of forming either a corporation or a limited liability company (LLC).3 min read
Minnesota incorporation is the process of forming either a corporation or a limited liability company (LLC). Whichever business structure you choose, you'll need to file certain documents with the state, pay fees, and obtain business licenses and permits.
Naming Your Company
If you want to form a corporation in Minnesota, you will need to select a suitable name for your business. There are two basic naming requirements you must meet. First, your name should be unique and distinguishable from other registered Minnesota business names. Second, your name should include an indicator of your business's status:
- Corporation or Corp.
- Incorporated or Inc.
- Company or Co.
- Limited or Ltd.
Once you've found an available name for your corporation, you can reserve the name for 12 months with the Minnesota Secretary of State.
Filing Corporation Formation Documents
Filing Articles of Incorporation is the next step of Minnesota incorporation. Once it has been properly drafted, you should file this document with the Secretary of State.
To make sure that your Articles will be approved and your company formed, include the following information:
- The corporation's name
- The address/name of the Minnesota registered agent
- The number of authorized shares
- Contact information for all incorporators
- An email address where the state can send official notices
- A phone number and name for a contact person
A filing fee of $135 is due when filing your formation documents. Every Minnesota incorporator needs at least one incorporator. Incorporators do not need to be state residents. Corporations in this state also need at least one director.
Minnesota corporations that want the ability to offset more losses can classify their company stock as Section 1244 stock. With this classification, a $100,000 ordinary loss deduction is possible. With normal stock, the maximum deduction is $3,000.