In order to become a corporation or limited liability company (LLC) in Minnesota, an organization must file its articles of incorporation, in the case of a corporation, or articles of organization, in the case of an LLC, with the Minnesota Secretary of State’s office.
In 1992, prior to the creation of LLCs, there were 10,043 corporations filed in Minnesota.
Since the creation of LLCs, they have taken over as the business entity of choice. In 2013, the Secretary of State’s office formed 29,175 LLCs, compared to 5,889 corporations. As of September 2014, there have been 23,223 LLCs filed, compared to 4,486 corporations.
Generally speaking, the popularity of LLCs has been the result of their operating flexibility, compared to the rigid structure of corporations.
In this area of law, it is usually better to be like everyone else, so the LLC is the preferred choice for a new business.
Unless there is a specific reason for a new business to become a corporation, the new business entity should generally be an LLC.
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