Laying A Solid Foundation For Your Business

You’ve decided to take the plunge and start your own business. You think you’ve got the idea and the skills to build a solid company, and, along the way, you’ve secured potential investors. But this is only the beginning of the journey that you hope will lead to your, your family’s and your employees’ success in southeastern North Dakota.

Forming a business is a complex matter that requires informed decision-making. Even though you’ve performed a great amount of research, you will need guidance in deciding the right entity for your company. The choice of entity type to form represents an essential step in growing your business the way you envisioned. Kennelly Business Law of Fargo can be the experienced legal counsel to guide and advise you on this business journey.

Choosing The Right Business Entity For You

Choosing the right business entity whether it be a limited liability company (LLC), S-corporation (S-corp) or partnership is essential because it can affect your taxes, ownership control if there is more than one owner and personal liability issues. For example, if your business is involved in a lawsuit, an LLC or S-corp status will protect business owners from having their personal assets being used to satisfy any potential liability.

The formation of your business is just the first step in how we can assist you. From there, we hope to build a solid and ongoing professional relationship with your company, advising you on many business facets. You can count on our attorneys to answer any question, provide effective guidance and review any developments that should surface.

Your Business Formation Options

Entrepreneurs and business owners in eastern North Dakota and northern Minnesota have several options when choosing legal structures for their businesses. Some of the most common choices include:

Partnership – In a partnership, each owner (partner) shares in the management and liability of the business. Partnerships can also form as limited partnerships, where general partners bear management responsibility and full liability for the company and limited partners act as passive investors, or as limited liability partnerships, which limit each partner’s liability for other partners’ obligations. Partnerships may work well for professional services firms, such as law, accounting, or consulting firms.
Limited Liability Company – A limited liability company (LLC) combines aspects of a partnership and a corporation. Owners can manage LLCs directly or elect managers to run the company. LLCs also offer flexibility in structuring equity ownership, company management, and taxation. LLCs also provide limited liability protection, making owners liable only for the money and assets they have invested in the business.
Corporation – A corporation provides limited liability protection for its owners, called shareholders. Corporations have formal governance structures, with the business run by a director or board of directors elected by the shareholders, who in turn may appoint officers to manage operations.

If you’re looking to start a business in eastern North Dakota or northern Minnesota, Kennelly Business Law can support your formation efforts from our offices in Fargo.

Key Aspects of the Business Formation Process

Forming and structuring a new business will involve several steps:

Selecting a Legal Structure – Entrepreneurs must first determine how they want to structure their new business, choosing among options such as LLCs or corporations.
Registering the Business – After selecting an entity type, new business owners must register the company with the state.
Drafting Corporate Governance Documents – A business will need various types of governance documents, depending on the legal structure, such as bylaws for corporations, operating agreements for LLCs, or partnership agreements for partnerships.
Executing Agreements – Business partners may also need to implement various contracts, such as stock/equity purchase agreements or shareholders’ agreements.

The Importance of Legal Counsel During Business Formation

Business formation can involve numerous legal issues and decisions. A knowledgeable attorney serving the Fargo–Moorhead area can walk you through the various steps of the formation process and help you make an informed decision about how to structure your new business. A lawyer can also advise you on specific legal issues related to business formation, including how to structure equity and management (especially with multiple partners, co-owners, or investors) or address tax considerations. Legal counsel can also help you develop effective procedures that enable you to manage your new business efficiently.

Why Choose Kennelly Business Law for Business Formation?

Registering and structuring a legal entity for your business can put you on the right path to success or cause significant problems at the start of your new company. Experienced legal counsel can provide the advice and support you need to develop a suitable business structure. Kennelly Business Law is proud to serve business clients in the Fargo–Moorhead region and across northern Minnesota and eastern North Dakota. Let the business lawyers guide you through the business formation process because:

Our lawyers have earned numerous awards for their work and client service. Attorney Chris Kennelly received a listing in North Dakota Super Lawyers for 2023 through 2025 and has also earned the highest AV Preeminent rating from peer-review service Martindale-Hubbell. Attorney Ben Williams also earned a listing in Super Lawyers’ Rising Stars list for 2021 through 2024, while Attorney Jeff Gunkelman also received a listing as a Rising Star for 2022.
Our attorneys call North Dakota home. Our families have lived here for generations and have owned and operated businesses in North Dakota for decades.
Our law firm works diligently to earn our clients’ trust. Our efforts have led many of our clients to return to our firm for continued legal support as issues arise. We take pride in living up to our values of reliability, trustworthiness, knowledge, and empathy.

Representing Businesses In Many Industries

We are a proud North Dakota business law firm that has represented hundreds of clients in many industries, including construction, manufacturing, retail, technology, professional services, agribusiness, real estate and insurance. Being client-focused and results-driven is key to your success and the success of Kennelly Business Law of Fargo. We share the same attributes. When you need assistance in forming your business, turn to us for guidance. Call our lawyers or contact us online.

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