Starting your own business can be exciting, rewarding and challenging, but it can also be a very risky undertaking. According to the U.S. Small Business Administration, over 50% of small businesses fail in the first year and 95% fail within the first five years.
These figures are not meant to scare you, but to prepare you for the challenging path ahead. Without the proper information, your business may be at a disadvantage before it even begins. You can improve your chances of success with good planning, preparation, and insight. It is important to understand what to expect.
Starting a business in Minnesota is not a single decision but a series of them, and each one is an important step. Entrepreneurs must be savvy about devising business plans, securing loans, and making any number of critical moves. Of all the decisions you make when starting a business, probably the most important one relating to taxes, is the type of legal structure you select for your company. Not only will this decision have an impact on how much you pay in taxes, but it will affect the amount of paperwork your business is required to do, and the personal liability you face.
There are many ways to organize your business. Each has its own set of advantages and disadvantages. Common choices for legal structures can include sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. The option you choose should depend upon liability issues, tax obligations, investment needs, and other factors; but the key is to find the best fit for your organization.
The financial and tax aspects of running a business are highly technical and unique to each different business. Professional guidance from your accountant is essential. We will help you compare the tax aspects of various business entities.
Should your small business be a sole proprietorship, a corporation, an LLC, a limited partnership or something else entirely? We are here to help you decide which business entity to choose (corporation, LLC, etc..) and what tax implications each decision may have, while helping you with the paperwork that goes with starting your business legally.
At Lom, Enerson, & Gunderson Tax Services, we understand that starting a business can be an enormous task and finding the right accountant is one of the key pieces to starting your business. To find out more about Business Startup Services, call to set up your appointment today at (763) 712-0300!
Success can be yours if you are patient, willing to work hard, and take all of the necessary steps.