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The Minnesota charter school law states that "the school must be organized and operated as a cooperative under chapter 308A or nonprofit corporation under chapter 317A." (Minn. Stats. 124D.10, Subd. 4(a)) Although the law provides two options, no charter school to date has organized as a cooperative, and the discussion here focuses on the nonprofit corporation option. Charter schools should incorporate early, as incorporation limits the liability of individuals involved with the school. The law, in fact, requires charter schools to incorporate before entering into a contract or other agreement for professional or ...
Setting up a corporation helps shield your personal assets and personal liability for the debts or actions of your business. It’s treated as a separate legal entity and you must treat it as such which includes avoiding the co mingling of funds, assets and credit files. One of the important reasons to build business credit that gets overlooked the most is protection of the corporate veil. Unfortunately, corporate veil piercing is the most litigated issue in corporate law today and is more common with small privately held entities. While there are many factors that can cause this ... Read More
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