Do you want to start a business in Minnesota? Here in this article, we will cover all the steps required to start a business in Minnesota including licenses and permits, taxes, insurances, and much more.
Find below the steps associated with starting a business in Minnesota.
Here is a Stepwise Guide on Starting a Business In Minnesota
Step 1. Choose a Business
We have discussed some of the most profitable business ventures relevant to Minnesota. Before you finalize an idea, brainstorm different ideas and evaluate all the resources available with you properly.
Read: Best Small Business Ideas to Start in Minnesota
Step 2. Business Plan
Minnesota currently has different business spread across multiple sectors. With a steady competitive, you need a detailed business plan to sustain in the market. Start to work on your business plan and include all the necessary business details including finance, goals and how to wish to run your business. Follow this guide on how to write a successful business plan in a day.
Step 3. Financing Your Business
There are certain investors and venture capital firms in the state. You can pitch your idea if you think it’s unique and actually feasible. You can even fund your own business where you can enjoy complete ownership with all the independence. Check out these top business loans available at very low payback rates.
Step 4. Naming Your Business & Domain Registration
Next up you need a name for your business. Officially registering a business name is important to register a business. You can also use a business name generator to check some unique suggestions. Once you finalize, register it with the US trademark department and immediately buy a domain with the same name.
Step 5. Choosing A Business Structure
Now you need to choose a business structure. You have the options of a proprietorship, partnership, corporation or LLC. If you choose to form an LLC, you can enjoy additional benefits like tax reductions and legal advantages. You as an owner will no more be held individually liable for any mishap.
Step 6. Federal EIN & Tax Filing
You need to apply for a Federal EIN to be legally taxed in Minnesota. The EIN will make your business eligible for separate tax filing. Apply for a FEIN at the IRS. You may also have to additionally register your business with the Minnesota Department of Taxation and Finance to complete the legal process.
Step 7. How to Get Business Licenses to Start a Business in Minnesota
Minnesota has different local city-specific licenses applicable to some of the businesses. Make sure that you take legal help and go through all the city-specific legal requirements and references. There are also additional licenses you have to apply for certain businesses, for example, plastic recycling.
The first step to get a business license is to understand the type of license you need to have for running the business you have decided. Next, you need to fill up the application form and submit it to the Minneapolis Development Review Office. A licensed inspector will inspect your application and will contact for further proceedings.
Step 8. Business Bank Account
Have a separate business bank account. It will keep all your financials in one place, making it easy to be taxed. Next up, set up an accounting method for your business. Go through the top accounting software so that all your transactions are maintained securely at one place.
Step 9. Business Insurance
Minnesota has no such specific compulsory insurances applicable, but having a professional liability policy is recommended if you sell services. Also, go for a worker’s compensation insurance if you have a working employee.
Step 10. Promoting Your Business
Marketing your business important initially. Start with social media. It’s free and easy to use. Scale-up accordingly. It’s better to hire an agency to promote your business professionally via effective channels.