So you want to form a business and become part of Minnesota’s thriving business community. You have much to consider and many decisions to make.
Taking a step-by-step approach can help you keep track of your business activities and get off to a successful start. Here are some steps to consider.
Create a business plan
Begin by drafting a comprehensive business plan, a document outlining your business goals, strategies and financial projections. A well-crafted business plan is essential to secure funding and guide your business operations.
Choose a business structure
Selecting the right business structure is crucial. Options in Minnesota include sole proprietorship, partnership, limited liability company (LLC) and corporation. Each structure has its own legal and tax implications, so consult with someone knowledgeable to determine the best fit for your business.
Understand tax obligations
Familiarize yourself with your tax obligations at the federal, state and local levels. Register for an Employer Identification Number (EIN) with the IRS, and learn about your responsibilities for sales tax, income tax and employment taxes.
Register your business
After choosing a structure, register the business with the Minnesota Secretary of State. It involves filing necessary documents, such as articles of incorporation (for a corporation) or articles of organization (for an LLC).
Obtain licenses and permits
Depending on your business type and location, you may need to obtain specific licenses and permits. Check with local, state and federal agencies to ensure you have all required documentation. Examples include zoning permits, sales tax licenses and professional licenses.
Taking things a step at a time can help you avoid making mistakes while establishing a solid foundation for your business. If you need more guidance, consult a legal representative with a background in business law.