10 Things Every Minnesota Small Business Owner Should Know

For the busy business owner, here is a list of the 10 things every small business owner in Minnesota should know:

  1. Worker’s Comp – If you have employees, you generally must get workers compensation insurance, even if you only have one employee (other than yourself).
  2. Limiting Personal Liability – Owners of partnerships and sole proprietorships are personally liable for the business, so get getting an LLC or corporation is generally a good idea.
  3. Personal Liability – Although an LLC or corporation limits the owner’s personal liability, an owner is always liable for his or her own conduct.
  4. Separate Bank Accounts – The law requires that LLCs and Corporations keep business records separate from personal funds.
  5. Renewing Your Business – Your LLC must be renewed each year. Do it online. It takes 1 minute and it is free.
  6. Self Employment Taxes – An LLC can elect to be taxed as an S Corp, which might reduce self-employment taxes, potentially saving thousands.
  7. Getting Paid – The legal costs of a lawsuit and collections make collecting a bill extremely expensive. So get paid in advance, especially with new clients.
  8. Intellectual Property – If your business has intellectual property, consult with a lawyer about how to protect it from competitors or employees who leave your business.
  9. Contracts – Every business enters contracts. Before you sign a contract, look to see if either party is entitled to attorney’s fees or collection costs after winning. In many contracts, the legal and collection costs are more expensive than the contract.
  10. CPA, Tax Preparer, and Attorney – Every small business owner should have access to a CPA, tax preparer, and attorney who can answer quick questions that come up. Find one that caters to small businesses.