Action Steps: • Keep detailed records of asset purchase dates and basis to accurately calculate capital gains and losses. • Know the Minnesota sales tax rates and local additions applicable to your sale location. • Consult with qualified tax professionals when selling any business interest or merging entities to avoid unexpected tax consequences. • Review Minnesota Department of Revenue guides and federal IRS rules for capital gains and business asset sales to stay up to date.
NAMING THE BUSINESS
CERTIFICATE OF ASSUMED NAME One of the first steps in starting your business is deciding what to call it. In Minnesota, your choice of name may require an official filing with the Office of the Minnesota Secretary of State. The rules are different depending on whether you are operating as a sole proprietor, partnership, corporation, or a Limited Liability Company (LLC). This section explains what you need to know about Assumed Names (DBAs). Using an Assumed Name (Doing Business As – DBA) An Assumed Name is required when you want to operate under a name that is different from your own legal name or your business’s legal entity name. You must file a Certificate of Assumed Name if: • You are a sole proprietor or general partnership and use a name that is not the full legal name of the owner(s). - Example: “Maria Lopez Consulting” (no filing needed). - Example: “BrightPath Consulting” (filing required). • Your corporation, LLC, or partnership uses a name different from its exact registered name. -Example: “North Shore Builders, LLC” doing business as “Superior Homes”. Important: Filing an assumed name provides information to the consumer on the identity of the business owner. It does not give you exclusive rights to the name. To protect your name, you may need to seek a trademark. Note that registering a domain name or Federal trademark is a process completely separate from making any filing with the Secretary of State.
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