How to Form a C Corporation in Minnesota
Are you planning to form a C corporation in Minnesota? If so, this guide will help you through the process.
A business is considered a C corporation if it meets the following three requirements:
- It has no more than 100 shareholders.
- The shares are held by individuals, estates and trusts (as opposed to partnerships or corporations).
- Shares of stock cannot be sold below par value, which is $1 for most stocks issued by smaller Minnesota companies. You must also have a legal name for your corporation that’s different from that of any other business entity currently existing in Minnesota or elsewhere in the United States.
Once you’ve decided on an appropriate name, you can file articles of incorporation with the secretary of state’s office online or by mail. This process requires filing fees ranging between $50 and $200 depending on how quickly you’d like them completed—and will allow you to form your own company with relative ease!
Next, you’ll need to obtain a business license and tax ID number. If you’re going to be operating in Minnesota, you’ll want to file for incorporation as well.
- Business license: This can be obtained through your city’s government website or by contacting them directly.
- Tax ID number: The IRS issues this number when you incorporate. You can apply for it after filing your articles of incorporation with the Secretary of State’s office in Minnesota.
- Articles of incorporation (for businesses): After obtaining all necessary licenses and tax ID numbers, it’s time to form the company! To do so in Minnesota, simply file Articles of Incorporation online through the state Secretary of State website; this will cost $100 or less depending on your situation (e.g., if there are certain fees associated). Once submitted, an agent from their office will contact you within 24 hours via email with further instructions regarding what comes next (e.g., paying additional fees).
You’ll need to create a new corporation with the Secretary of State. The process is fairly straightforward and can be completed online in just a few minutes. If you don’t have the time or energy to take care of this yourself, we can help you form your business!
Once your corporation has been created, it will need an Employer Identification Number (EIN). This number is used by the IRS to keep track of corporations so they can send tax returns to them each year and make sure they’re paying their taxes on time. You’ll also need an EIN if your company has employees who are paid wages or salary—even if those wages are less than $500 per quarter!
A C corporation is a business entity that’s separate from its owners, shareholders. So when you form a C corporation, there are two main things to know:
- The main benefit of forming a C corporation is that it gives you limited liability. If your business experiences financial problems or gets sued (which can happen), then the worst that could happen to you personally is that your assets may be seized—but only after all of the company’s creditors have been paid off first. This means that if a lawsuit were filed against one of your companies for $1 million, for example, then its assets would be used up first before anything happened to any other assets owned by yourself personally (like your house).
- The second advantage of forming a C corporation is that it allows for greater tax deductions than other forms of businesses do. For example, if you own 100 percent of an LLC and make $200k per year in profits from renting out space in one or more buildings, then as long as all taxes are paid on time every year higher taxes may not matter too much since they’re likely being offset by lower fees associated with running an LLC compared with running another type such as S Corp or partnership structure which may have higher overhead costs associated with them due the fact they’re technically owned by someone else who might want their money back someday…
After you’ve formed your company, you’ll want to pay your taxes and file tax returns. You’ll also need to pay yourself a salary and make sure you have enough money to run the business. The following steps will help you do this:
- Pay your taxes and file tax returns
- Pay yourself a salary
- Keep accurate records of all transactions including purchases, payments made on behalf of the company, and any other financial transactions
In order to form your C corporation, you’ll need to file a Certificate of Incorporation with the Secretary of State. This document includes basic information about your corporation, including its name, purpose and address. You’ll also have to pay a filing fee—$60 for an LLC or $250 for a corporation—and fill out the form online or by mail.
The next step is selecting directors and officers (also called shareholders) who will manage day-to-day operations within your company.
- Make sure you have a valid EIN. If you do not have an employer identification number (EIN) from the IRS, you will need to apply for one before forming your corporation.
- Make sure you have a registered agent and registered office address in Minnesota. The secretary of state requires all corporations to keep their registered agent in Minnesota and provides them with a list of approved agents on its website. In addition, if any government official needs to contact your business or vice versa, they can submit communications through this agent rather than directly contacting someone at your company.
- File an annual report with the secretary of state’s office every year after incorporating to make sure that everything is up-to-date with the agency and no new information needs changing in their records about your company’s status.*
Minnesota is the best state to do business in.
- Minnesota is the best state to do business in.
Minnesota has a strong economy, an educated workforce, and a vibrant culture that supports entrepreneurship. The Twin Cities are home to many Fortune 500 companies like Target and Best Buy—but you don’t need to be in Minneapolis or St. Paul if you want your own business venture to succeed. Across the state there are countless opportunities for small businesses too!
- Starting a business is easy!
Some states make it harder than others when it comes time to start your own company; but not here in Minnesota! We offer free resources such as free tax filing services through H&R Block—and we also provide free workshops on how-to topics related directly with forming C Corporations (or other types of corporations).
We hope that you’ve found this article to be helpful and informative. If you have any questions or concerns about forming a C corporation in Minnesota, please don’t hesitate to contact us! Our friendly staff is standing by 24/7 ready to assist.