Hi and welcome to JA. I am Ray and will be the expert helping you tonight.
I think the most common here is an LLC.It would offer you some corporate protection and allows you to operate your business.
LLC’s have a distinct advantage over many other business structures for a couple of different reasons:
- they are easy to set up; and
- they restrict personal liability of each person associated; and
- they are not taxed as an entity.
An LLC does not typically issue stock shares to be publicly traded. The shares are usually privately owned. Although this may be a disadvantage in terms of raising capital, this factor can make ownership of an LLC substantially easier.
Liability is one of the major assets. Here if someone files a lawsuit against the LLC, the individual officers and shareholders are typically not personally liable on the judgment. The LLC is usually only liable for the sum of its assets.
Another major advantage of an LLC is the simple method in which it is taxed – or not taxed. Compared to a standard corporation, LLC’s have “flow-through” tax liabilities, meaning that the entity itself is not taxed – only the individuals making money from the LLC are taxed.
The final major advantage of owning an LLC is that there is no requirement to hold an annual meeting. In a corporation, the shareholders and board members usually must meet at least once a year to vote on corporate matters and elect officers. This requirement is not a statutory requirement of an LLC.
For these reasons I think that an LLC is the way to go here in Minnesota for your business.
I appreciate the chance to help you tonight.Please let me know if you have more follow up.Thanks again.