Last week I promised to move into the process of filing paperwork to open a small business. Each state has developed guidelines to help you through this process. If paperwork is not your thing, we’ll be happy to help you with this, but I still recommend reviewing materials furnished by the Office of the Minnesota Secretary of State. Then I suggest talking it over with someone who has small business knowledge. I won’t lie, this is the exciting part for me.
In this article you’ll learn:
- How to legally start a business in Minnesota
- You’ll learn easy steps to completing filing requirements
- Gain access to local and state resources, complete with a Knowledge Check at the end of this blog article
Just as creating artwork may be the best part of your day, at Outsource Ally, we have qualified people who get excited about business creation. We can help guide you through the process, but we want you to understand it. Let’s look at setting up your business legally in Minnesota. While it may seem daunting, the process is explained thoroughly on the State of Minnesota’s website. They have compiled a list on how to start a business in Minnesota.
When you click on the link above, the following information will display with article links (click on each topic to read on the specifics. I won’t repeat that information here today; however, I urge you to read through it):
HOW TO START A BUSINESS IN MINNESOTA
Starting a business in Minnesota consists of three basic steps:
- Write a business plan
- Choose a business type
- Register your business.
After reading through the topics I suggest moving to the State of Minnesota‘s Guide on How To Start a Business for advice. Please keep in mind that most articles are designed with mid-size and large businesses in mind.
In reality, it is quite simple to start your business and sell your artwork, but you must do so legally. I’ve subscribed to the Minnesota Department of Revenue’s email list for many years, almost weekly, I will receive a notice of someone who has been charged for not filing and paying sales tax in Minnesota.
Those charges are followed with ‘Failure to File Income’ for the number of years that they should have been collecting and paying sales tax. It is not my intent to scare you away from selling your crafts; it is my desire to help you do it legally as you build a name for yourself.
Applying For an EIN (Employer Identification Number)
The second part of filing company paperwork will be to decide if a Federal EIN in necessary. That can be accomplished through clicking on the state’s Apply For an EIN page The second paragraph contains a link under the title ‘Apply Online”.
You will read through the following Q& A designed to help you decide on the necessity of applying for an EIN. I posted it here so that you can save yourself some time, if you answer ‘NO’ to each question, it will not be necessary.
You will need an EIN if you answer “Yes” to any of the following questions. For your convenience, clicking on the “Yes” option will take you directly to How to apply for an EIN.
Check Your Knowledge
Do you have employees?
Do you operate your business as a corporation or a partnership?
Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?
Do you withhold taxes on income, other than wages, paid to a non-resident alien?
Do you have a Keogh plan?
Are you involved with any of the following types of organizations?
- Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
- Real estate mortgage investment conduits
- Non-profit organizations
- Farmers’ cooperatives
- Plan administrators
I hope you’ve enjoyed this article and learned some important, and necessary, steps to legally opening your business in MN.
In our next weekly article, we will continue providing helpful tips and break down the steps you should take to:
• Develop your Profit and Loss Accounts
• Simple Guide To Using Quickbooks for Small Business Owners
• 10 Simple Steps To Streamline Your Bookkeeping in Response To COVID