A Guide To STARTING A BUSINESS IN MINNESOTA 43rd Ed 2025


PREFACE
4

TABLE OF CONTENTS
5

5 STEPS TO START YOUR BUSINESS IN MINNESOTA
8

OPERATIONAL ACTIONS TO START A SMALL BUSINESS
9

CHOOSING THE FORM OF BUSINESS ORGANIZATION
10

TAX AND NON-TAX CONSIDERATIONS
10

NAMING THE BUSINESS ENTITY
42

FORMING A SOLE PROPRIETORSHIP
48

FORMING A PARTNERSHIP
49

FORMING A MINNESOTA BUSINESS CORPORATION
53

FORMING A MINNESOTA LIMITED LIABILITY COMPANY
60

SPECIAL TYPES OF BUSINESS ORGANIZATIONS
65

FILING DOCUMENTS WITH THE OFFICE OF THE MINNESOTA SECRETARY OF STATE
71

OFFICE OF THE MINNESOTA SECRETARY OF STATE FEE SCHEDULE FOR BUSINESS ENTITY FILINGS
73

REGULATORY CONSIDERATIONS
78

SECURITIES REGISTRATION
78

FRANCHISE REGISTRATION
86

EVALUATING A BUSINESS OPPORTUNITY
88

BUSINESS LICENSES AND PERMITS
91

ENVIRONMENTAL PROTECTION PROGRAMS
93

BUSINESS COMPLIANCE CHECKLIST
99

INTELLECTUAL PROPERTY PROTECTION
101

BUSINESS PLAN
102

ACCOUNTING FOR THE NEW BUSINESS
106

BASIC ACCOUNTING PRINCIPLES
106

INCOME FORECASTING TECHNIQUES
107

BUSINESS GRANTS
112

BUSINESS LOANS
113

PUBLIC SOURCES OF FINANCING – FEDERAL PROGRAMS
115

PUBLIC SOURCES OF FINANCING / TAX CREDITS – STATE PROGRAMS
119

PUBLIC SOURCES OF FINANCING – LOCAL PROGRAMS
133

PRIVATE SOURCES OF FUNDS
133

INSURANCE
135

ISSUES FOR EMPLOYERS
138

WHO IS AN EMPLOYEE?
138

EMPLOYMENT AGREEMENTS
144

LABOR STANDARDS
146

REST BREAKS AND LEAVE TIME
167

EMPLOYEE TESTING AND BACKGROUND CHECKS
174

EMPLOYMENT OF MINORS
177

PROTECTION OF EMPLOYEES WHO REPORT VIOLATIONS OF LAW
181

HUMAN RIGHTS
183

IMMIGRATION LAW COMPLIANCE
190

OCCUPATIONAL SAFETY AND HEALTH
192

WORKERS’ COMPENSATION INSURANCE
199

EMPLOYEE BENEFITS
205

PLANT CLOSINGS
207

POSTER REQUIREMENTS
208

CHECKLIST FOR HIRING AN EMPLOYEE
211

BUSINESS TAXES
223

TAX IDENTIFICATION NUMBERS
225

BUSINESS INCOME TAX RETURNS
229

SALES AND USE TAX
237

FICA TAX
243

INCOME TAX WITHHOLDING
243

SUCCESSOR LIABILITY FOR CERTAIN TAXES WHEN A BUSINESS OR ITS ASSETS ARE TRANSFERRED
251

REVOCATION OR PREVENTION OF LICENSE ISSUANCE OR RENEWAL
252

UNEMPLOYMENT INSURANCE TAXES
252

FEDERAL TAX REQUIREMENTS
260

STATE OF MINNESOTA TAX REQUIREMENTS
261

SOURCES OF INFORMATION AND ASSISTANCE
263

STATE PROGRAMS
263

SMALL BUSINESS ASSISTANCE OFFICE
263

SMALL BUSINESS DEVELOPMENT CENTERS (SBDCs)
264

MINNESOTA TRADE OFFICE
265

MINNESOTA BUSINESS FIRST STOP
267

LAUNCH MINNESOTA
267

VOCATIONAL REHABILITATION SERVICE
267

EMPLOYMENT AND TRAINING PROGRAMS
268

MINNESOTA JOB SKILLS PARTNERSHIP
269

DISLOCATED WORKER PROGRAM
270

MINNESOTA FEDERAL BONDING SERVICE
270

UNIVERSITY OF MINNESOTA EXTENSION
270

GOVERNMENT PROCUREMENT ASSISTANCE
271

FEDERAL PROCUREMENT
271

STATE PROCUREMENT
275

LOCAL PROCUREMENT
278

ACCOUNTING AND TAX ASSISTANCE
278

PUBLIC ACCOUNTANTS
278

ENROLLED AGENTS
280

TAXPAYER EDUCATION WORKSHOPS
280

LIBRARIES
281

ADDITIONAL SOURCES OF ASSISTANCE
284

SPECIALIZED LEGAL RESEARCH AND ASSISTANCE
284

MANAGEMENT ASSISTANCE FOR MINORITY BUSINESSES
285

INCUBATORS
285

INVENTORS RESOURCES
285

MINNESOTA STATE
285

REGIONAL DEVELOPMENT COMMISSIONS
286

EXPORT / IMPORT ASSISTANCE
286

SCORE
287

WOMEN OWNED BUSINESS ASSISTANCE
287

BUSINESS CERTIFICATION
288

BUSINESS SUCCESSION AND EXIT PLANNING
288

RESOURCE DIRECTORY
290

COOPERATIVES
292

ENVIRONMENTAL
292

FINANCING, FEDERAL SOURCES
292

FINANCING / TAX CREDITS, STATE SOURCES
294

FINANCING, LOCAL SOURCES
296

FINANCING, PRIVATE SOURCES
298

GOVERNMENT, FEDERAL
299

GOVERNMENT, STATE
303

GOVERNMENT, REGIONAL
311

INSURANCE
312

INVENTORS
312

JOB SERVICE and JOB TRAINING
312

LEGAL ASSISTANCE
315

LIBRARIES
316

LOCAL ASSISTANCE FOR SMALL BUSINESSES
319

MANAGEMENT ASSISTANCE / MENTORS
321

MANAGEMENT / BUSINESS DEVEOPMENT ASSISTANCE FOR MINORITY OWNED BUSINESSES
323

PROCUREMENT / PURCHASING / CERTIFICATION / OTHER ASSISTANCE
325

TAX AND ACCOUNTING ASSISTANCE
327

ADDITIONAL RESOURCES
327

ADA INFORMATION
327

COUNTY LICENSING AGENTS
327

CITY LICENSING CONTACTS
328

CO-WORKING / CREATIVE / INCUBATOR SPACES
328

NONPROFIT INFORMATION
330

OTHER
330

DIRECTORY OF LICENSES AND PERMITS
332

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