Legal Question in Business Law in Minnesota

I am starting a small business with a partner holding equal equity. Can I file as an s Corp with a partner. Minnesota

Asked on 11/26/15, 4:55 pm

2 Answers from Attorneys

David Anderson Anderson Business Law LLC

You can but I would advise against it.

I usually find LLC the preferred entity for small business set up, and

recommend that a 2 person company NEVER share 50/50 ownership, due

to major problems in the event of deadlock.

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Answered on 11/26/15, 5:17 pm
Maury Beaulier612.240.8005 Minnesota Lawyers

I am afraid that you misunderstand a corporate entity. If you have a corporation, the tax election is to be taxed as a subchapter S. The owners (equity holders) are shareholders, not partners. if it is an LLC, the owners are members. You must consult with an attorney.

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Answered on 11/29/15, 10:21 am

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