Minnesota S Corp Attorney

Many Minnesota small businesses choose to form an S Corp because of its pass-thru taxation benefits, payroll tax benefits, and reliability as a traditional business entity. An LLC can also be taxed as an S Corp and reap the S Corp taxation benefits.

If you need to form a Minnesota S Corp or have legal issues involving an S Corp in Minnesota, contact attorney Aaron Hall for a free phone consultation.

S Corp Basics

S Corp is short for “S Corporation.” Technically, an S Corp is a corporation that has elected S Corp tax treatment under Subchapter S of Chapter 1 of the Internal Revenue Code.

S Corp Benefits

An S Corp combines the limited liability benefits of a corporation with the pass-thru taxation status traditionally afforded to partnerships. Also, the IRS allows an S Corp owner who works for the business to cap payroll taxes at the owner’s salary level rather than imposing the self-employment tax on all income under the self-employment tax threshold ($102,000 in 2008).

S Corp Taxation

An S Corp is not taxed at the business level as a C Corporation would be (double taxation). Rather, the profit or loss passes through the business to the owners, and is taxed as income to the owners. The IRS provides information regarding the appropriate tax forms for S Corps.

S Corp Disadvantages

There are a few disadvantages to an S Corp:

  • An S Corp must file quarterly estimated payroll taxes.
  • An S Corp must maintain some corporate formalities to keep its limited liability protection.
  • Unlike a sole proprietorship or partnership, an S Corp is created by filing with the Secretary of State.

Minnesota S Corp Formation

A Minnesota S Corp is formed by drafting Articles of Incorporation, Bylaws, and related formation documents and filing them with the Minnesota Office of the Secretary of State. Next, the business registers with the IRS to obtain an EIN and registers with other appropriate agencies (for example, the Minnesota Department of Revenue if the business will charge sales tax) as required by law.

Minnesota S Corp Business Attorney

Attorney Aaron Hall has formed countless small businesses, advised them on tax matters, litigated business disputes, and drafted complex business contracts.

If you are considering forming a small business or have a small business legal issue related to Minnesota, please contact attorney Aaron Hall for a free phone consultation to discuss your legal matter. Attorney Aaron Hall is a managing attorney in the Twin Cities Law Firm, LLC, a Minneapolis, MN law firm serving Minneapolis, St. Paul, and cities throughout Minnesota.

Published on December 31st, 2008 | Filed under this Minnesota lawyer topic: Business Law






Disclaimer: Please read the Terms of Use. This website is advertising, not legal advice. As a lawyer in Minnesota, Aaron Hall and lawyers in his firm are licensed to provide legal services throughout Minnesota (MN), including those in Hennepin County, Ramsey County, Anoka County, Carver County, Dakota County, Scott County, Washington County, Isanti County, and Wright County. The attorneys' service area includes these Minnesota cities: Albert Lea, Albertville, Andover, Anoka, Apple Valley, Arden Hills, Belle Plaine, Big Lake, Blaine, Bloomington, Brooklyn Center, Brooklyn Park, Burnsville, Carver, Castle Rock, Champlin, Chanhassen, Chaska, Circle Pines, Cloquet, Columbia Heights, Concoran, Coon Rapids, Cottage Grove, Crystal, Dayton, Delano, Duluth, Eagan, East Bethel, Eden Prairie, Edina, Elk River, Elko New Market, Excelsior, Falcon Heights, Faribault, Farmington, Forest Lake, Fridley, Glencoe, Golden Valley, Ham Lake, Hamel, Hanover, Hastings, Hibbing, Hopkins, Hugo, Inver Grove Heights, Isanti, Jordan, Lake Elmo, Lakeville, Lilydale, Linden Hills, Lino Lakes, Little Canada, Long Lake, Loretto, Mahtomedi, Mankato, Maple Grove, Maple Plain, Maplewood, Medina, Mendota Heights, Minneapolis, Minnetonka, Minnetrista, Monticello, Moorhead, Mound, Mounds View, Moundsview, New Brighton, New Hope, New Port, New Prague, New Ulm, Newport, North Branch, North St. Paul, Northfield, Oak Grove, Oak Park Heights, Oakdale, Orono, Osseo, Otsego, Owatonna, Plymouth, Prior Lake, Ramsey, Red Wing, Richfield, Robbinsdale, Rochester, Rockford, Rogers, Rosemount, Roseville, Savage, Shakopee, Shoreview, Shorewood, South St. Paul, Spring Lake Park, Spring Park, St. Anthony, St. Bonifacius, St. Cloud, St. Francis, St. Louis Park, St. Michael, St. Paul, St. Paul Park, St. Peter, Stillwater, Twin Cities, Vadnais Heights, Victoria, Waconia, Watertown, Wayzata, West St. Paul, White Bear Lake, Willmar, Winona, Woodbury, and Wyoming, Minnesota (MN).