Tag Archive: Benefits of LLC

Apr 01

Buy/Sell Agreements, Shareholder Agreements, and Member Control Agreements – pretty much the same thing?

What is a Buy/Sell Agreement? A buy/sell agreement is a contract between the owners of a company. This agreement provides a mechanism and generally provides the terms and conditions for the sale and purchase of an ownership interest to the other owners, the company or a third party upon the occurrence of specific future events. …

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May 13

New LLC statute for Minnesota companies

The Minnesota legislature recently passed an overhaul of Minnesota’s LLC Act.  Before, Minnesota corporations and limited liability companies (LLCs) were structurally the same (Owner>Board>Officer).  Decisions between whether to use an LLC or corporation were generally left to tax considerations.  However, that is all changing and entrepreneurs will have new choices in establishing entities. New LLCs …

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Jun 10

Non-Tax Factors of Business Formation Minnesota

In choosing the most appropriate form of organization, the business owner will want to consider a variety of factors, including: complexity and expense of organizing the business; liability of the business owner; distribution of profits and losses; management control and decision making; financing startup and operation of the business; transferability of ownership interest; continuity of …

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May 16

Forming a Business in Minnesota: Limited Liability Company (LLC)

A Minnesota business also may organize as a limited liability company. A limited liability company elects to be treated for tax purposes as a sole proprietorship (disregarded entity), partnership, or corporation. A limited liability company may have one or more members. As described further in the section on tax considerations in choosing the form of …

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Dec 14

Differences Between an S-Corporation and Limited Liability Company

There are three main differences between an S-Corporation “S-Corp.” and a Limited Liability Company “LLC”. These differences are (1) ownership restrictions, (2) the treatment of self-employment tax and (3) the distribution of profits and losses. The ownership restrictions for an S-Corp. are much more substantial than those of an LLC.  Pursuant to IRS code section …

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Nov 18

The Need for Member Control Agreements for LLCs

Often, new business owners question whether they need a member control agreement. They commonly don’t know of the possible pitfalls of operating without one. In this article we will address why a member control agreement for an LLC is a necessary component for the business. A member control agreement should address four primary issues. Determine …

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Oct 07

Benefits of a Limited Liability Company

When determining which entity an individual or group should form, one of the top choices is a limited liability company, also known as an “LLC”. While there are many benefits to forming an LLC, this post will discuss four of the more prominent ones. The first benefit, and arguably the most important, can be found …

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