One of the most important decisions to make when starting a business is which type of organizational structure will form your business.  This decision will not only impact the ever so obvious tax implications you face, it will determine your personal liability as the operator as well.   

The most common cause of failure with new businesses is either a lack of know-how or a lack of capital. Of all the new businesses in Minnesota that started in 2012, 57% of them are still in operation. According to the U.S Bureau of statistics Minnesota has one of the highest survival rates in the nation. The national five-year survival rate is around 50%. 

A key component to ensure the vitality of a business is “business planning”. A business plan is a vital component for any organization; it can provide the business operational direction with respect to marketing, finances, objectives, and strategies to make the business successful. A good business plans assists entrepreneurs as they navigate or avoid short- and long-term obstacles to their business.

Contrary to popular belief, starting a business is not as easy as buying a pair of shoes and should be carefully planned and considered.  The most important piece to that plan is determining what kind of business to start.