What Should Minnesota Entrepreneurs Consider When Choosing A Business Structure?

Minnesota entrepreneurs should think about a few practical issues before choosing a business structure, because the “right” setup depends on how you want to run the business and what risks you’re taking on.

Start with liability. If you’re operating as a sole proprietor or general partnership, your personal assets can be exposed. Many owners choose an LLC or corporation to help separate personal and business risk. Next, consider taxes and payroll. Some structures are simpler, while others may offer planning flexibility depending on profits, compensation, and whether you’ll have partners. You’ll also want to think about ownership and control, including what happens if a partner wants out, someone stops performing, or you want to bring in investors. Finally, consider the end game: selling the business, adding members, issuing equity, or raising capital is usually easier when the structure is built for it from day one.

This is general information, not legal advice, but a good lawyer and accountant can help you set it up correctly and avoid expensive fixes later.