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Incorporate in Mississippi

Date: 10/02/2018 | Category: | Author: Jakub Vele

Incorporate in Mississippi

Why should you set up company in Mississippi? The state has one of the best business climates as the government has kept taxes low, strengthened existing infrastructure, brought innovation and advancement to workforce training programs. Today, the top industries in the state where businesses have experienced high levels of growth include Agriculture, Manufacturing, Services(hotels, private health care, repair shops, law firms, casino gaming), and Fishing.

Why Choose Mississippi for Incorporation?

Although Mississippi is home to a variety of industries, one of the largest is the tourism industry with food services and drinking establishments, casino and non-casino hotel, and motels being the key drivers of the $395.1 million revenue in 2016. Higher business incorporation in Mississippi travel and tourism industry has also bolstered employment in the state.

Now let’s take a look at some of the salient reasons that are responsible for fuelling growth of small businesses:

  • Rural Opportunity Zones (ROZ): One of the programs that businesses can benefit from post incorporation in Mississippi is the “Opportunity Zones Program”. If your business qualifies for this program then you can earn tax relief on the capital gains. You can check the designated Mississippi opportunity zones map here.
  • Business Incentive Tax Credits: There are a variety of tax incentives that are available to small and medium sized enterprises after they set up company in Mississippi. These tax incentives can be categorized under the following:
    – Income tax incentives
    – Franchise tax incentives
    – Sales or Use tax incentives
    – Property tax incentives

How do you incorporate in Mississippi?

What is the process of incorporation in Mississippi? What type of documentation is required? These are some of the common questions that you will be confronted with if you are planning to start a new business in the state. The following steps will enable understanding of the entire process:

Business Type

The first step towards incorporation in Mississippi is choosing the type of business you want to form. You can form different types of businesses in the state including Limited Liability Companies, C and S Corporations, General Partnership (GP), Limited Partnership (LP), and Limited Liability Partnership (LLP). If you choose to form an LLC or a Corporation then you need to identify if it will be a domestic or foreign entity. The forms and fee will be different for each type of entity.

Business Entity Name

One of the most important steps towards incorporation in Mississippi is naming your business entity. You have to start by identifying, searching, reserving, or registering the business entity name. There are 3 steps towards business name formation and they are:

  • Naming Requirements: According to MS Code § 79-29-109 (2013) for LLC and MS Code § 79-4-4.01 (2013) for a business corporation, the name should contain the words “limited liability company”, “corporation”, “incorporated” or abbreviation like “LLC. “, “corp.”, and “inc.” The names should be distinguishable from existing names.
  • Business name search: You need to search for a business name that is not in use currently. You can conduct name search here.
  • Name Reservation: Once you have identified a business entity name, you have to reserve the name pursuant to MS Code § 79-4-4.02 (2013) for corporations and MS Code § 79-29-111 (2013) for a limited liability company. The name can be reserved for a period of 180 days.

Choose a Registered Agent

Whether you form a corporation or an LLC business entity, in order to transact business in the state of Mississippi, you will have to maintain a registered agent pursuant to MS Code § 79-4-5.01 (2013) and MS Code § 79-29-113 (2013). We are one of the respected registered agents in Mississippi and will be responsible for initiating incorporation in Mississippi through processing of your “Articles of Incorporation” for domestic entities and “Certificate of Authority” for foreign business entities.

Articles of Incorporation and Certificate of Authority

You will be required to submit “Articles of Incorporation” if your business is a domestic corporation and a “Certificate of Authority” if it is a foreign business entity. In order to streamline the process of incorporation in Mississippi, we can file documents on your behalf through the online process or through an expedited process.

Date Stamped Copies

As a part of the process of company incorporation in Mississippi, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.

Costs and Fees associated with Mississippi Incorporation

What would it cost to set up a company in Mississippi? Check Fees here!

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What is a Joint Venture?

Date: 10/01/2018 | Category: | Author: Jakub Vele

What is a Joint Venture?

The entrepreneur always looks for an opportunity for the expansion of their revenue channels which helps them to generate more market shares, profits, and growth of their company. They look forward to an efficient business strategy so that they can achieve the quick success in business growth. And, the joint venture is that business strategy or arrangement.

When two or more parties create a business entity and generally characterized by shared governance, shared returns, and ownership and risks for a specific task is known as a joint venture.

Key Elements of a Joint Venture

A joint venture is another business entity which is formed by the association of two or more stabilized businesses, agree to combine their respective talents and resources to achieve a specific goal. It usually takes a limited period to accomplish a particular task.

There is no federal filing or a formal state required for a joint venture. One has to sign a contract to create a joint venture with another party. As per the agreement each party has to give a contribution to the business venture in the form of cash, resources, properties, and assets. The parties divide the control and management, profits and losses of the joint venture as per the contract signed.

Though a joint venture is similar to some of the characteristics of the partnership, there is a crucial difference between the two. The partners of the business have to be involved in a long-term relationship whereas a joint venture is for a limited period and based on the single business transaction.

Types of the joint venture

To set up a joint venture one needs to decide the specific goal a business tends to achieve. We have mentioned below the different types of joint ventures.

1. Limited co-operation

When a company or business entity wants to collaborate with other business entity for a specific reason and in a limited way, then it is said to be a Limited co-operation joint venture. Both the companies should agree on the terms and conditions of the agreement before the joint venture.

As an example, let’s say that you are a small business entity and have launched a new product, but you want to sell the product through a more extensive network. So, you will approach the desired business entity with such a distribution network and collaborates as per the terms and conditions agreement for both the parties.

2. The separate joint venture business

The separate joint venture business is possibly a new entity which is formed to handle a specific contract. This kind of business venture is a very flexible option. Each partner owns some shares in the company and agrees to the terms and conditions of the agreement.

3. Business partnerships

Sometimes, a limited company may not be a right option. Hence, one could form a limited liability partnership(LLP) or a business partnership. You could even merge the two businesses.

Benefits of a joint venture

A joint venture can help your business to generate higher profits, increased productivity and to grow faster. The benefits include:

  • access to greater resources like technology and finance, specialized staff.
  • access to distribution networks and new markets
  • sharing of liabilities with a partner
  • increased capacity

Joint ventures even don’t require outside investors. You may be able to:

  • Partner’s services and products can be offered to your existing customers.
  • Forces in research and development and purchasing.
  • To market your product you can use your joint venture partner’s customer database.

The joint venture is very flexible. As an example, a joint venture can have a limited lifespan, thus limiting the commitment for both parties. For the businesses being operated in different countries, like within the transport and travel industries, joint ventures are very popular.

Risks of a joint venture

If the business entities who are looking forward to a joint venture and differs in resources then a venture or partnering may be severe.

For building a business relationship, the business entities require to have time and efforts. After putting all so much time and efforts, it is still possible to have joint venture risks. The problems will occur for sure if:

  • The joint venture has different objectives than the partners.
  • The venture objectives are not clear and communicated to everyone involved.
  • The partners bring in different levels of assets into the venture and expertise them.
  • Indifferent cultures and management styles result in poor management.
  • The partners do not provide enough support and leadership in the starting stage of the venture.

A detailed analysis of aims and objectives is required for a joint venture’s success. The business plan should be efficiently clear to everyone involved in it.

Tips for Success

Here are some tips for successful joint venture:

  • Identify and understand the culture and working style of the partner’s business entities.
  • Both the parties must agree to the venture’s goal and expectations.
  • The investments contributed by the different parties should be expertise.
  • In the early stages of the joint venture, every employee and the partners of the business should be provided proper guidance. The vision and mission of the venture must be clear to both the parties involved.

Joint Venture Agreement

The terms and conditions is the most important key to a joint venture. These should be written on a legal paper as a contract which includes:

  • The joint venture’s business aim and objective
  • Defining the type of the joint venture, based on the business structure,either it is a limited corporation, separate or a partnership type venture
  • The contribution of both the parties investments in the form of cash, assets, technology or even liabilities.
  • Rules for the management of the joint venture
  • Distribution strategy of profits and losses and even the liabilities.
  • Defining and allocating the roles of every employee who is involved in the joint venture.
  • Intellectual properties which will be created after the joint venture must be appropriately managed, so defining a rule for that too.
  • How the disputes will be handled on the joint venture plan execution.
  • Deciding its duration of the termination of the joint venture, and putting a confidential clause so that commercial secrets can be protected.

A formal agreement is a must for all the party members, partners and employees so that any confusion would be eliminated in the future basis the contract.

How can IncParadise help you?

For a quick growth in business, a joint venture is the best opportunity. You might have identified and analyzed the right business entity for the future joint venture, but before that, you need to start and register your business. And the IncParadise can assist you through the whole process of registration and incorporation of your company. We also provide the other services like mail-forwarding, or so. You can check out the details on the website and choose the package that is best suitable for you.

How Corporations Are Taxed

Date: 09/26/2018 | Category: | Author: Jakub Vele

How Corporations Are Taxed

Corporations are the separate individual legal entities apart from the owners, and the taxes are imposed on the company on every profit which cannot be deducted as business expenses.These taxable profits comprise of the money which is kept aside for covering the companies expenses or retained earnings. The shareholders distribute the profits or money as dividends.

Tax-Deductible Expenses

The corporate taxations are different as the shareholders may deduct many of their trade expenses. It is that money which is spent by the corporation confirming to the law followed by the profits.The corporation may deduct the employee’s bonus and salaries. Not only this, corporations can deduct the start-up costs, advertising outlays, operating expenses and the other ones associated with the retirement and medical plans which are intended for the employees.

The corporation has to file IRS Form 1120. It is a corporate tax return, and whenever makes any profit, the corporation pay taxes at a corporate income tax rate.
While paying the taxes, corporations have to calculate the estimated tax amount which could be due for that year. The IRS collects the payments by the corporations. Paying quarterly is also permissible like tax payments on the 15th day of April, June, September, and December, if the corporations consider the calendar year as the taxable year, the quarterly payments.

Shareholder Tax Payments

The corporation’s owner also has to pay taxes on their salaries and bonuses like the other employees of the company if they work for the corporation. The corporation itself does not pay any taxes as Salaries and bonuses are considered to be deductible business expenses.

Tax on Dividends

As per the corporate taxation rules, if the dividends are distributed between the owners. Based on the amount of their share, individuals has to pay personal income tax.Since dividends are not tax-deductible, the corporation also has to pay the taxes for the same. Hence, the dividends are taxed twice, to the corporations as well as to the shareholders.

If you are a smaller corporation and working as the regular employee for your corporation, you can pay the taxes regardless of the taxable dividends. The taxes can be paid in the form of tax-deductible bonuses and salaries.

S Corporation Taxes

S corporations are the small business corporation unlike the one we have already mentioned above(C corporations). These corporations elected S corporations to pass through the deductions, corporate income, credits and losses for federal tax purposes. To make it simpler, consider it to be like a limited liability company (LLC) or partnership company.

No Pass-through Tax Deduction

For reducing the double taxation, there is a unique business structure available which is known as the pass-through entity. The taxes collection is done at the owner’s level, after the distribution of the corporate income between the owners, but never at the corporate level. For the pass-through entities, this is a new income tax deduction method, and it falls under the Tax Cuts and Jobs Act. The deduction of about 20% of the net income is made for the income tax purposes for the LLC’s, sole proprietorships, S corporations, and partnerships but it does not include C corporations as it is not the pass-through entity.

Benefits of the Separate Corporate Income Tax

There are certain benefits to have a separate taxation level but reporting and paying taxes on a separate corporate tax return can be time-consuming. To know the pros and cons of corporate taxation, you must see a tax expert. Corporate taxes are not advantageous when are involved in investing or sooner that could be sold.

Lower Corporate Tax Rate

The federal corporate income tax rate, now, has been lowered from 37% to flat 21% on all their profits. A reduced corporate taxation will lead to higher productivity and growth, because of the new investments.Because of the double taxation, the lower rates benefits are mostly lost as the shareholders distribute the corporate profits. For such dividends, they pay income tax individually.

However, for funding the future growth and expansion, at the end of the year, the corporations tend to retain some profits in the business. Hence, corporate taxation or income tax rate is flat at 21%, and it is taxed only once. The owner of the corporations saves the money for future benefits of the company.

But, owners of sole partnerships, LLCs, and proprietorships pay the taxes on every business profits. The taxes are paid at their individual income tax rates, regardless of any benefits they make from the company.As per the IRS guidelines the corporations keeps up to $250,000 of profit. For this profit, the corporations even do not have to bother the tax penalties.

Tax-Free Fringe Benefits

Usually, the employees do not have to pay the taxes for the fringe benefits like medical health insurance, expenses reimbursement, daycare assistance, dental insurance and so on. Based on the corporate taxations, the company deducts the cost of the employees and as well as the owners fringe benefits. So,the owners, as well as the employees, do not have to pay the taxes on these benefits and if they receive any such fringe benefit, they will be taxed accordingly to its value.

How can IncParadise help you?

Now that you have understood the corporate taxation and got your business plan ready, IncParadise can assist you in registering and incorporating your dream business. In case you want any other services like mail-forwarding or so, you can check out the details on the website and choose the package that is best suitable for you. You can also customize the package depending on your requirements and needs.

Tips to Choose a Perfect Domain Name For Your Business Website

Date: | Category: | Author: Jakub Vele

Tips to Choose a Perfect Domain Name For Your Business Website

In the world of digitization, a perfect domain name has become the identity of any business entity. The more research we do for the website and logo design of our business entity, the more effective marketing strategy we can make. But, the whole process gets completed with the choice of an eye-catchy and effective business domain name. Buying a perfect domain name helps to sell your business more efficiently.

You merely do an injustice to a business entity if you put all your efforts in planning and building a business but fails to choose a perfect domain name for it. So, how to choose an ideal domain name for your business website?

We’ve mentioned below the best tips to choose a business domain name which will later become the leader for your business selling strategy. Let us learn!

1. Choosing a perfect domain extension: Go with “.com”

Internet Assigned Numbers Authority (IANA) has maintained the list of all top-level domains extensions. They are ranked and categorized as open TLD’s, intended for the government entities and institutional organizations.

So, if you tend to become a profitable business entity, it is always a smart move to choose an open TLD, i.e., better to go with a “.com” domain extension. Also, one of the most excellent tips for choosing a business domain name is choosing out a perfect extension. One can build a successful brand by eventually purchasing the “.com” even if your website has become successful with the other domain name.

2. Scoop up other domain extensions, too

The best option of choosing a business domain name extension is “.com,” but as per the successful business strategy, one must buy the other TLD’s as well. As an example, every smart business entrepreneur picks up different variations of top-level extensions like “.biz,”.net”, “.edu”, “.org” and so on based on the type of the industry.

The reason behind this is the consideration of the visitors who may type in the wrong domain extension. By applying the redirection, the visitors will reach the intended business website even if they type wrong.

As an example, if the business entity has a domain name XYZ with a “.com” extension. If the visitor, type in incorrect extension, let say XYZ.info. , the visitor will be redirected to the XYZ.com.

With the rise in the growth rate of business, it becomes possible that the opponents tend to buy the remaining available extensions of your domain name as their business strategy. So, it is an excellent way of securing your growth rate of success.

3. Keep it short

Choosing a business domain name could be easy but getting one of your choices is nowadays very challenging. As every business entity has become digital, they all are in the race of buying a unique domain name to sell their product as the USP(unique selling point).

The entrepreneurs want their customers to grab their website’s identity as early as possible, so they while choosing the business domain name , they tend to keep it as short and as easy to learn as possible. It helps the customer to memorize the brand.

Domain names describe the product or the services of the business entity so sometimes choosing a business domain name with more than two words could be an only option they have. So, in that case, it is better to select the combination of eye-catching words. This type of approach helps the business entities to generate more leads.

But, it is better to find a unique, simple and short domain name. It will attract the majority of the customers, and they find it even much more accessible to promote further.

4. Avoid “cutesy” names and abbreviations

If you are choosing a business domain name, regardless of your business type a formal and a professional domain name should be preferred. Selecting a pretentiously artistic domain name like 2U and 4U makes the business entities identity as text-speak.

While choosing a business domain name, no matter what is your business type one must avoid using this domain name shorteners. It becomes harder for the visitors or the target market to memorize these unprofessional domain names causing the business to lose some possible leads.

5. Don’t make it awkward

One of the best tips for choosing a business domain name is to avoid hyphenating the domain name. Also, one must not even include the spaces.When we add hyphens and spaces, the domain names become awkward and harder to memorize. As an example, one can consider the several already existing business domain names.

IT Scrap – “www.itscrap.com,” considering this URL as the real-life example one can have the idea of representing the product of the business entity. Choosing a hyphenated domain name for your business may have specific recall issues for the people. And, they are even harder to advertise by word of mouth. Most importantly its resale value is also very less if we compare it to a non-hyphenated business domain name.

6. Make it brandable

A business domain name is more than just a name. Because it is the identity of the product, which the business entity will be selling. Just by looking at the business domain name the target market can get the rough idea of what the business entity tends to represent.

Choosing a business domain is also like doing the branding of your business. So, avoiding a fancy name, one must use that kind of domain name which seems to be more of like a brand than just a name.

The catchy domain names will itself explain your business type to the customers. As an example, let us say a business entity is selling every kind of books at a large scale. They can choose the domain name like “buybooks.com.” Just by looking at the domain name one can identify that it is related to selling the books.

Adopting such a domain name is eventually viable for generating the target leads. Similarly, if the domain name for the same business would have been “buywithus.com,” then target market could have no idea about what the company is selling. Due to an inappropriate name, it is not that assessable as it becomes confusing for the customers or target market to figure out what the business does.

Also, while choosing a business a brandable business domain name, trademark check should be done. There may be many domains name available for your business, so, do not confuse it with the one you want to pick.

7. Choose a domain that’s easy to remember

A brandable business domain names are generally short and more accessible. Choosing a business domain name is the greatest challenge because one has to make a unique choice. A business domain name must have catchiness, creative imagination, and distinctiveness.

Branded business domains are the ones already created and registered as a name, and you need to pick an apt one out for you.Also, customers may find your website URL on newsletters, search queries, flyers, and several other such websites. Hence, always stick to address you require. These branded domain names are smarter, more accessible, and an eye catcher.

8. Stay clear of copyright issues

Due to the proliferation of the business domain names, the business entity should make sure that while choosing a business domain name, the business entity has done all the pre-checks carefully.

The most important one is the copyrights issue. One must not step into the others business trademarks mistakenly. So, finding and registering a perfect business domain name takes the proper valuation. Check out the availability on every possible platform to avoid a situation where one can choose someone else’s trademark.

Besides, check for the present environment that the existing business domain name does have a positive or a negative connotation on the people minds?. Or it is even possible the chosen domain name words can have the double meanings too, so it creates the brand confusion to the visitor about the business.

An essential aspect of a successful business is the brand consistency. So, do not hesitate to do every possible pre-check. After all, it is going to be an identity of a company.

9. Unlock the power of keywords

When it comes to online marketing, choosing a business domain name for your business website is one of the fundamental keys to the business success. So, one should also do the brainstorming for finding a reliable keyword that best suits in with your business identity.

To make it simpler, let us take exemplify it. Suppose that you sell printed t-shirts. You created one website for you. Then you wrote the business description for your site after doing the keyword research from the SEO point of view. Now the same implies the choice of a domain name. And you selected it to be “printingtshirts.com.”

As mentioned above, you must replace your domain name with a keyword you think that people may use specifically related to your business. When the visitor types in the respective keyword, he eventually gets the directions to your business website.

Let’s continue with the example now. Based on your business type the visitor will enter the keyword print t-shirts. Now here you will get an advantage of getting more leads since your domain name (“printingtshirts.com”) comprises the similar information.
So, it is a smart move to take advantage by choosing your domain name using an optimum keyword research strategy for digitizing your business.

10. Protect your privacy

Authenticity is essential for the establishment of a company. So, while choosing a business domain name, one must be aware of the internet rules too. The information you provide to register your business domain name (including real name, permanent address, phone number, and an email address) should be authentic.

But this personal detail can be extracted out of the WHOIS database. So it is important to have privacy protection done.It will also prevent your registered domain name of being hijacked.

The registrar manages all the issues related to the domain registration and delegation. The registrar protects the personal information from the public or WHOIS database and it is called as the WHOIS protection or the domain privacy.

How can IncParadise help you?

So are you ready with your business plan and structure? Are you waiting to go through the process of registration? Does it seem difficult to figure out the necessary details required for the registration process?

Let IncParadise help you incorporating and registering your dream business entity quickly and professionally. We will help you with your business registration covering up all the risk factors you may have. So, contact us now.

Minnesota Business License

Date: | Category: | Author: Jakub Vele

Minnesota Business License

Once you have registered your new business in Minnesota, what is the next step? You have to make the business operational. This can be achieved through applying for a proper business license or permit. It is important to know that Minnesota does not have a single comprehensive license or permit for businesses. At the same time, all types of businesses don’t require a license to operate in the state.

There are several types of businesses that require a permit or business license in Minnesota and the licensing information is available with Minnesota Bureau of Business Licenses (BBL). BBL also publishes a directory that contains detailed information and is known as State of Minnesota Directory of Licenses and Permits.

Minnesota Business License Requirements

How do you obtain a business license in Minnesota? More importantly, does your business require a license or a permit or both? Who is responsible for issuing these licenses? These are some of the important questions that you might be confronted with and hence, we have created a guide that will help answer some of these questions.

Here is a step-by-step approach towards acquiring a business license in the state of Minnesota.

Step#1: The Industry or Business Type

The state of Minnesota issues more than 680 licenses that are administered by 46 state agencies. The type of industry or the activities a business is engaged in helps in identifying the type of business license required. It is also important to know that if your business activities are being regulated and supervised by a federal agency then you will be required to obtain a federal business permit or license. A business that imports animal products, biotechnology, or biologics across state lines will require a federal license.

The requirement for a permit or Minnesota company license is dependent on the type of industry or services. Some of the main categories of services or industry for which a license or permit is required are as under:

  • Adult Care
  • Agriculture
  • Alcoholic Beverages
  • Aviation
  • Buildings and Construction
  • Financial Services
  • Hospitality Industry
  • Technology
  • Corporations and Organizations including Charitable Organizations

Step#2: Licenses issued by City/County

If your business type doesn’t fall under a statewide license then you will have to check with the local city or county office. A general business license in Minnesota is normally issued in some cases and in other cases a specific business entity might be required to maintain compliance with the local ordinances.

Let’s take a look at an example to understand this better.

If you are planning to establish your business in Minneapolis and if your business belongs to the entertainment industry then you will require a business license depending on the type of entertainment establishment being set up. The license and fee will vary according to the following:

  • Amusement: Mechanical Device
  • Place of Amusement
  • Place of Entertainment
  • Pool and Billiard Halls
  • Theater
  • Shooting Galleries
  • Children’s Rides
  • Carnival
  • Charitable Gambling
  • Circus

Step#3: Issuing of Business License

How is a business license in Minnesota issued? Who issues the license? The license is issued by different state agencies and counties depending on the type of business, industry, location, and services or products offered. If you are planning to establish a Satellite Systems Contractor (SSC) business then the license will be issued by Minnesota Department of Labor and Industry (DLI). On the other hand, if you are planning to establish a Debt Collection Agency then the license will be issued by the Minnesota Department of Commerce. The business licenses are normally valid for a year.

Once you have identified the type of business and the permit or license required, you can simply go ahead and apply to the specific licensing board or state agencies or county for that particular business type.

If you have any questions regarding registration of your business or require information regarding business license in Minnesota, feel free to call us on 702-871-8678.

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Advantages of Incorporating a Business in Minnesota

Date: 09/25/2018 | Category: | Author: Jakub Vele

Advantages of Incorporating a Business in Minnesota

Minnesota is a state that provides every start-up and small and medium sized enterprise with several advantages including a bright and sunny business climate. Forbes ranked Minnesota as the 15th best state to establish and operate a business. Some of the factors that provide the most favorable conditions for a start-up company in Minnesota to grow include competitive tax rates, strong pro-business policies, streamlined regulatory processes, and a low operating expense. Apart from this, businesses can benefit from an educated and highly skilled workforce.

Advantages of setting up an LLC Or Corporation

When you register a new company in Minnesota, your business entity gets the much needed platform and opportunities in the form of advantages and benefits that will drive economic change and overall growth. One of the major factors behind the growing economy of the state is innovation and based on this, it is ranked seventh in the nation.

If you are planning to form an LLC or a Corporation in Minnesota then what advantages or benefits can the business benefit from? Let’s look at the advantages of the most common forms of formal associations:

Advantage#1: Salient benefits of Corporation or LLC formation

Corporation

  • Favorable Tax Advantage: If you register a new business in Minnesota, you can take advantage of the fact that the state does not tax the following:
    – Personal property
    – Utilities
    – Inventories
    – Internet access
    – Custom-created software
    – Information services
  • Change in Ownership: If you have formed an S Corporation in Minnesota then sale, purchase, as well as gifting of stock can facilitate changes in ownership. The changes can take place without disturbing the ability of the corporation to conduct its business.
  • Independent Life: If you register a new business in Minnesota as an S Corporation then the most important advantage is that it will enjoy an independent life. The business entity will continue operations undisturbed even if it is faced with the death of one of its stockholders.

LLC

  • Resources for Entrepreneurs: A start-up company in Minnesota can benefit from different resources that will be available to help in the journey towards innovation and growth. These resources are being implemented through several programs initiated by Minnesota Department of Employment and Economic Development (DEED).
  • Limited Liability: The owner of a Minnesota LLC will be able to enjoy limited liability protection, which means creditors can sue the LLC but not the owner or investors.
    No Minutes of meetings: Unlike a corporation, an LLC startup company Minnesota will not be required to maintain any minutes of the meetings or resolutions.

Advantage#2: Business Incentives

Once you register a new company in Minnesota as an LLC or a C or S Corporation, there are a variety of incentives and state based programs that you can benefit from. Let’s take closer look at the most popular incentives for businesses in Minnesota:

  • Minnesota Opportunity Zones: This is a type of new community development program that has been established to encourage long-term investments from a start-up companies in Minnesota in a low-income community. A business entity located in an opportunity zone will be eligible to receive the following:
    – Temporary tax deferral on capital gains
    – Permanent exclusion from taxable income on capital gains
    Map of Opportunity Zones
  • DEED Financing Programs: There are a number of financing programs introduced by Minnesota Department of Employment and Economic Development (DEED) to help businesses in creating high quality jobs and retain existing jobs. The fund amount varies from one program to another. For instance, the ceiling amount for the Minnesota Job Creation Fund is $1 million while the Minnesota Innovation Loans for Entrepreneurs (MILE) provides a maximum of $20,000 to $50,000. Know More

If you register a new business in Minnesota, there are several other incentive programs that you can benefit from including Minnesota Foreign Trade Zones, Emerging Entrepreneur Loan Program, Greater Minnesota Business Expansion Tax Credits, Border Cities Enterprise Zones, Tax Abatement Program, Bioscience Incentive Program, and Research and Development Tax Credit among others.

Are there any Disadvantages of Incorporating in Minnesota?

A start-up company in Minnesota, whether domestic or foreign will enjoy more benefits in the state. Of course there are a few disadvantages. For example, incorporation may lead to higher overall taxes. The good news is that the disadvantages will not have any negative impact on business growth in the long run.

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