Editor’s note: Michael Adams is the Co-Founder of Gredio , web-based food manufacturing software for specialty food companies built to help you effortlessly run your business (and forget about Excel spreadsheets). It is extremely frustrating to have a promising idea, but little to no capital to start a business. Investors and even friends & family usually want ownership and control of their portion of the business. This should dovetail with the business plan, but expand on the details simply stated in the plan to some extent.
A limited liability company is an unincorporated business entity which shares some of the aspects of Subchapter S Corporations and limited partnerships, and yet has more flexibility than more traditional business entities. As the first section of a business plan, an executive summary should be a top-line synopsis of your business and how you plan to accomplish your goals.
It is relatively simple to set up as a sole trader but if your business fails, your personal assets could be used to pay your creditors. Talk to knowledgeable friends and family about your idea or ask a local business owner you respect to be your mentor. Depending on the complexity of your business, it may be worth investing in a consultation from an attorney or CPA to ensure you are making the right structure choice for your business.
If I am not mistaken, one would be better off going to Indiana to start a business than to Illinois, because of the tax burden factor. Tim give you tips on what to do and what not to do when starting up your business. You may wish to consult with an attorney, accountant, or with one of the resources listed above before making a determination as to the type of business to form.
The plan also provides a balance sheet, income statement, and cash flow analysis. If you are skilled at party planning and enjoy doing it, this can be a lucrative business for you. Here is a brief overview of the main types of business structures available in Minnesota.