WomenVenture

Empower women to achieve their economic goals

Small Business Startup Checklist

Welcome to WomenVenture’s guide for getting your business up and running in Minnesota! Launching a business can be overwhelming, so we’ve broken this process down into an easy-to-follow checklist, complete with links to outside resources. Use this checklist to guide you through the process of moving your business from concept to reality.

If you’re seeking additional guidance on the logistical aspects of this process, you may be interested in WomenVenture’s Startup Toolkit course. In this two-hour session, we cover the basics of business registration, permits and licenses, business banking, and compliance.

If you’re seeking additional guidance on the business planning aspects of this process, you may be interested in WomenVenture’s Small Business Essentials course. In this five-session course, we cover the basics of business planning, including marketing, branding, finance, as well as legal and operational considerations.

Get Your Small Business Up and Running (in MN): A Step-by-Step Guide

Remember that each business is unique, and you may need to adapt these steps to your specific industry, circumstances, or location.

1. Business Idea and Planning:

  • Identify your business idea: What product or service will you offer, and who is your target market?
    • Idea Development: Refine your business idea by identifying your value proposition and how it addresses a specific need or problem in the market.
  • Research the market and competition in Minnesota.
    • Market Research: Conduct thorough market research to understand your target audience, their needs, and the demand for your product or service.
  • Create a detailed business plan that outlines your goals, budget, marketing strategy, and financial projections.
    • Business Plan: Your business plan should include an executive summary, company description, market analysis, organizational structure, product/service offerings, marketing strategy, financial projections, and funding requirements. It’s a roadmap for your business.
    • B Plans offers sample business plans for a variety of business types.

2. Legal Structure:

  • Choose a legal structure for your business, such as a sole proprietorship, partnership, LLC, or corporation. Your choice will affect your liability, taxation, and paperwork requirements.
    • Sole Proprietorship: Simplest and least expensive option. You are personally liable for business debts.
    • Partnership: If you have a business partner, you can form a general partnership or limited partnership.
    • LLC (Limited Liability Company): Provides liability protection while maintaining flexibility in management and taxation.
    • Corporation: Offers strong liability protection but involves more paperwork and formalities. Can be S-corporation, C-corporation, or B-Corporation.

3. Register Your Business:

4. Tax IDs (EIN):

  • Apply for an EIN: Obtain an Employer Identification Number (EIN) from the IRS. This nine-digit number is used for tax reporting and may be required for banking purposes.
    • Apply for an EIN: You can apply for an Employer Identification Number (EIN) on the IRS website: Apply for an EIN Online.
  • Apply for a MN Sales and Use Tax Permit (if necessary): A Minnesota Tax ID Number is a seven-digit number used to report and pay Minnesota business taxes.

5. Corporate Transparency Act:

  • File your Beneficial Ownership Information Report (BOIR): As of January 1st, 2024, most LLCs and Corporations are required to file a Beneficial Ownership Information Report per the Corporate Transparency Act. You can face fines if you do not complete this filing within 30 days of registering as a business. You can file this brief form through the FinCen website.

6. Location and Zoning:

  • Choose a Location: If your business requires a physical location, select a site that suits your needs and is compliant with local zoning regulations.
  • Zoning Compliance: Check with your local government or zoning department to ensure your chosen location is zoned for your type of business.

7. Business Finances:

  • Business Bank Account: Open a separate business bank account to keep personal and business finances separate. This simplifies accounting and tax reporting.
  • Financing: Explore funding options, including personal savings, loans, grants, venture capital, or angel investors, to cover startup costs and initial operating expenses.
  • Small Business Loans and Grants: Explore financing options through WomenVenture or the Minnesota Department of Employment and Economic Development: DEED Financing Programs.

8. Business Insurance:

  • Types of Insurance: Consider insurance options such as general liability, property insurance, professional liability (if applicable), and workers’ compensation (if you have employees).
    • Insurance Provider: Work with an insurance agent or broker to find the right coverage for your business.
    • Minnesota Department of Commerce: Learn about business insurance requirements and resources: Business Insurance Information.

9. Taxes:

  • Understand your tax obligations at the federal, state, and local levels. This includes income tax, sales tax, and payroll tax if you have employees.
    • Tax Identification Numbers: You may need a Minnesota Tax ID if you plan to sell taxable goods or services. Register with the Minnesota Department of Revenue.
    • Federal and State Tax Filings: Comply with federal and state tax requirements, including income tax, sales tax, and payroll tax if you have employees.
    • Minnesota Department of Revenue: Register for a Minnesota Tax ID and access tax information for businesses: Minnesota Business Taxes.

10. Hiring Employees:

  • If you plan to hire employees, register with the Minnesota Department of Employment and Economic Development and comply with labor laws, including minimum wage and workplace safety regulations.
    • Employment Records: Maintain accurate records of employee information, pay, and tax withholding.
  • Labor Laws: Familiarize yourself with federal and state labor laws, including minimum wage, overtime, and workplace safety regulations.

11. Accounting and Record-Keeping:

  • Accounting Software: Consider using accounting software like QuickBooks or hiring an accountant to track income and expenses.
  • Receipts and Invoices: Keep all financial records, including receipts, invoices, and bank statements, organized and accessible.
    • Minnesota Society of Certified Public Accountants: Access resources for accounting and financial management: MN Society of CPAs

12. Marketing and Branding:

  • Develop a marketing strategy to promote your business. Create a website and establish a presence on social media.
    • Online Presence: Create a professional website and establish a presence on social media platforms relevant to your target audience.
  • Branding: Invest in branding elements like logos, business cards, and marketing materials to build a recognizable brand identity.
    • Build your brand through logos, business cards, and other marketing materials.

13. Open for Business:

  • Inventory and Staffing: Ensure you have sufficient inventory, equipment, and trained staff in place before your grand opening or launch date.
    • Minnesota Retailers Association: Resources for retail businesses opening in Minnesota: MnRA

14. Ongoing Compliance:

  • Renew Licenses: Stay on top of license and permit renewals to remain compliant with state and local regulations.
  • Tax Reporting: File regular tax returns and reports on time to avoid penalties.
    • Minnesota e-Services: Manage your state business filings and compliance online: Minnesota e-Services.

15. Growth and Adaptation:

  • Monitoring and Evaluation: Continuously assess your business’s performance, customer feedback, and market trends to identify opportunities for growth.
  • Expansion: Consider expanding your product or service offerings or exploring new markets as your business matures.

16. Seek Professional Advice:

  • Consider consulting with an attorney, accountant, or business advisor to ensure you’re meeting all legal and financial requirements.
  • Legal Counsel: Consult with an attorney to navigate legal requirements and protect your business’s interests.
  • Accounting Services: Consider hiring an accountant or tax professional to ensure accurate financial record-keeping and compliance with tax laws.

View WomenVenture’s event calendar for upcoming courses and workshops focused on building your business!