For the busy business owner, here is a list of the 10 things every small business owner in Minnesota should know:
- Worker’s Comp – If you have employees, you generally must get workers compensation insurance, even if you only have one employee (other than yourself).
- 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.
- Personal Liability – Although an LLC or corporation limits the owner’s personal liability, an owner is always liable for his or her own conduct.
- Separate Bank Accounts – The law requires that LLCs and Corporations keep business records separate from personal funds.
- Renewing Your Business – Your LLC must be renewed each year. Do it online. It takes 1 minute and it is free.
- Self Employment Taxes – An LLC can elect to be taxed as an S Corp, which might reduce self-employment taxes, potentially saving thousands.
- 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.
- 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.
- 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.
- 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.