For Minnesota Corporation prices and State fees, please visit the costs page for forming a Corporation in Minnesota.
Minnesota corporation has a couple options for taxation. Standard "C" corporations have one major disadvantage, "double taxation". This situation is when the corporation pays corporate income tax and the shareholders pay income tax on the distribution of the profits, or dividends. In order to have the corporation to be taxed as a partnership or sole proprietorship, the corporation can elect "S corporation" tax status. This requires one additional document to be filed. The "S" election means that the corporation’s profits "pass through" to the shareholders who pay taxes individually, this way there is only one level of taxation.
Minnesota corporation must observe some operating formalities and maintain its separate legal status. Holding shareholder meetings, at least annually, is one of these formalities. At these meetings the corporation shareholders discuss and decide on critical business matters and approve actions taken by the corporation for the operating period. These meetings should be recorded in the form of meeting minutes, this is a legal record that shows the shareholders are approving actions and the officers are indemnified by the stockholder approval of the business actions.
A corporation’s Articles of Incorporation are the documents filed with the state office that brings the company into legal existence. Once the documents are filed the corporation is a legal entity. However, there are additional elements required so that the legal entity that has been created provides the protection and tax savings offered by corporate law. Depending on the nature of your corporation, the documentation requirements could be relatively simple or very complicated. Each state has its own requirements regarding the contents of the articles of incorporation. Please contact one of Companies, Inc.’s helpful associates to determine what the filing requirements are for your potential corporation in your chosen state of incorporation.