Choose a Business Structure

• Aspiring Minnesota business owners have to choose a structure for their companies. This structure dictates how the owner will operate the firm. In Minnesota, most owners choose one of four business structures. Just one owner controls a sole proprietorship and assumes the responsibility of business obligations and debts. Two or more individuals can operate a partnership, and a partnership agreement describes how the owners will handle management responsibilities, profits and losses. A limited liability partnership offers an additional layer of legal protection against liability. Finally, shareholders own a corporation, and a board of directors manages and oversees the business.
  
  

Get a Business License

• Many types of Minnesota businesses must secure a license to operate in the state. Owners should investigate their business license responsibility before opening the doors. Some state licenses ensure product safety, assure that competition is not restricted or that natural resources are preserved. The Minnesota Bureau of Business Licenses regulates the distribution of state licenses. Also, check with your city or county about any municipal licenses your business type might require. Your city clerk can advise you regarding license requirements.
  
  

Get Unemployment Insurance

• Minnesota law requires every business that pays wages to register with the state's unemployment insurance program. The business must complete its registration and submit it to the secretary of state after it pays its first wages and before the end of its first quarter of operation. In short, this program requires Minnesota businesses to report all wages, such as salaries, commissions, bonuses and awards, to the state every quarter. To remain in compliance with this program, businesses also must maintain complete payroll accounts and display a state-issued "Unemployed?" poster for employees to see.
  
  

Get Workers' Compensation Insurance

• The Minnesota Workers' Compensation Act requires all state businesses with one or more employees to acquire workers' compensation insurance through a state-approved insurance provider. When an employee suffers an on-the-job injury, the business must report it to its insurance provider using a "First Report of Injury" form available from the Minnesota Department of Labor. The business also generally has to pay workers' compensation to the injured employee, which the insurance will help to cover.