Starting and Growing a Business in Rochester, Minnesota

Starting a business is not a single decision but a series of them, each one bringing you a step closer to the day your store or factory or office is up and running, competing for customers and making money.

How will you organize and register your business? What are the regulatory considerations? How will you protect your intellectual property? Is your business plan adequate? Where can you find financing? What are your obligations as an employer? Do you understand your tax responsibilities?

Rochester Area Economic Development, Inc. (RAEDI) will provide answers to those questions and more - or point you toward the local, county and state offices and agencies that are best suited to help. You can also contact our local small business development partners, SCORE - www.score-rochester.org or the Small Business Development Center in Rochester - www.rochestersbdc.com . The Small Business Development Center provides consulting for business planning, market research and analysis, financial planning and loan packaging. The Southeast Minnesota Chapter of SCORE assists people in starting a new business, buying or selling a business, and providing counseling to existing small business owners.

The Department of Employment and Economic Development publishes Guide to Starting a Business in Minnesota that is available free of charge. Copies may be picked up in the RAEDI office at 220 South Broadway, Suite 100, Rochester, Minnesota, ordered online, or by calling the publications order line at (651) 556-8425 or toll-free in Greater Minnesota at (800) 310-8323.

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Additional Business Resources

Below are resources available to assist you in the initial planning stages of starting a business.

All Around Business Advice: www.allbusiness.com
Guide to Starting a Business in Minnesota:
www.positivelyminnesota.com/Business/Starting_a_Business/index.aspx
Internal Revenue Service - Forms, Tax Help: www.irs.gov/smallbiz
Minnesota SCORE: www.score-mn.org
Minnesota Secretary of State: www.sos.state.mn.us
Minority Owned Businesses: www.sba.gov/content/minority-owned-businesses
On-Line Women's Business Center: www.onlinewbc.gov
Rochester Area Economic Development, Inc.: www.raedi.com
Rochester SCORE: www.score-rochester.org
Rochester Small Business Development Center www.rochestersbdc.com/
SME Toolkit (Small/Medium Enterprises Toolkit): us.smetoolkit.org/us/en
U.S. Small Business Administration: www.sba.gov
U.S. Small Business Administration Starting a Business:
www.sba.gov/category/navigation-structure/starting-managing- business/starting-business/
Wall Street Journal Center for Entrepreneurs: www.startupjournal.com
Young Entrepreneurs: www.sba.gov/content/young-entrepreneurs
Rochester Area Chamber of Commerce: www.rochestermnchamber.com/
504 Corporation: www.504corporation.com
African Development Center of Minnesota: www.adcminnesota.org/
Mayo Clinic Supplier Diversity Program:
www.mayoclinic.org/suppliers/supplier-diversity.html
Metropolitan Economic Development Association (MEDA): www.meda.net/
Minnesota Procurement Technical Assistance Center: www.ptac-meda.net

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Business Structure

Select a business entity type from the following list for a brief overview of the principal types of legal business structures available in Minnesota. You may wish to consult with an attorney or accountant before making a determination as to the type of business entity to form.

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Secretary of State Business Filing Fees Schedule

Filing fee schedule for business categories: www.sos.state.mn.us/index.aspx?page=86

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Minnesota Tax ID Requirement

You need a Minnesota tax ID if you:

Make taxable sales or leases in Minnesota
Perform taxable services in Minnesota
Withhold Minnesota income taxes from employees' wages
Make estimated business tax payments
File a Minnesota corporation franchise, S corporation or partnership tax return
File fiduciary income tax returns as an estate, trust or personal representative
File or pay MinnesotaCare taxes or special taxes, such as alcohol, tobacco or insurance premium taxes
Are a vendor of goods and services to a state government agency or to a business receiving payments from a state agency
Have use tax to report (read Sales Tax Fact Sheet 146 and Sales Tax Fact Sheet 156 for details); or
Have solid-waste management (SWM) taxes to report (first, register for sales and use tax online; then call the Minnesota Department of Revenue.

If you already have a Minnesota tax ID, you may need to apply for a new one if:
Your business changes its legal organization, or
You are required to apply for a new federal employer ID number.

To order a form or to ask a tax question, call:
(651) 282-5770
TTY: Call 711 for Minnesota Relay
Phone lines open 8:00 a.m. - 4:30 p.m. weekdays
Fax: (651) 297-1939

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Information from the Internal Revenue Service (IRS)

Most businesses start out small. As a new business owner you need to know your federal tax responsibilities. This page provides links to basic federal tax information for people who are starting a business. It also provides information to assist in making basic business decisions. The list should not be construed as all-inclusive. Other steps may be appropriate for your specific type of business.

What New Business Owners Need to Know About Federal Taxes

To learn more about these federal tax questions, click on the link below:
www.irs.gov/businesses/small/article/0,,id=99336,00.html

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Minnesota Licenses

If you are wondering if you need a license to run your business, you can access information on over 500 licenses administered by over 40 state agencies in Minnesota on the License Minnesota website at www.state.mn.us/license/content.do?mode=activities&letter=A. For the first time you can find the licenses you need, whether professional, business, vehicle or recreational in one spot. And, for your convenience, they are accessible in a variety of ways: by regulated activity, administering agency, name of license, or with a keyword search.

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Business Financing

Whether through loans, grants or tax incentives, access to sufficient capital is essential when starting and growing your business. Following are some state finance programs that may be useful.

Loans

Training Grants

Tax Incentives

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Minnesota Sales and Use Tax

Click on the link below for the Minnesota Sales and Use Tax Instruction Booklet. This will give you step-by-step information about how to register and who should register with the Minnesota Department of Revenue. It will also give business owners a summary of taxable sales in Minnesota and what is taxable, what is not taxable, general filing information and how to prepare to file a return.
www.taxes.state.mn.us/taxes/sales/instructions/st_bk_rev0709.pdf

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Locating a Building, Site, or Community

One of the most important decisions you'll make is where to locate your new business. To help you choose a building, land site or community, RAEDI provides a listing of commercial buildings available in the Rochester area at www.raedi.com/available_buildings.html. The state maintains MNPRO - www.mnpro.com - a comprehensive database of statewide available commercial and industrial land and buildings as well as community profiles.

For information on regulations regarding your business location, contact the Rochester/Olmsted County Planning and Zoning Department at 507-328-7100 or www.rochestermn.gov/departments/planning_zoning/index.asp

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