Growing a startup takes more than a great idea. It takes intentional decisions around how to structure your business, taxes, hiring, and operations. Whether you're just getting started or gearing up to scale, here are areas to focus on early: 

Choose the Right Structure

Your business entity determines how you're taxed, how you raise money, how liability is handled, and how easy it is to grow. It's one of the most important early decisions, and one of the hardest to undo, so it's worth taking the time to get it right. 

• Sole Proprietorship - Easiest to start and manage, but offers no legal separation between you and the business. Income is reported on your personal return (Form 1040 Schedule C), typically due April 15.
• Partnership - Involves two or more owners sharing profits, losses, and responsibilities. It is often used for joint ventures or family businesses. Typically files Form 1065, due March 15.
• Limited Liability Company (LLC) - Offers flexibility and liability protection with pass-through taxation and is a popular choice for many startups. May file as a sole proprietorship, partnership, or corporation, depending on structure. Returns due March 15 or April 15.
• S-Corporation - Avoids double taxation by passing income through to shareholders, but has ownership and compensation restrictions. Files Form 1120S, due March 15.
• C-Corporation - Allows for multiple classes of stock and outside investment (VCs, etc.) but is subject to double taxation unless structured carefully. Files Form 1120, due April 15.

Nebraska Credits & Incentives

Federal Credits & Incentives 

Understand & Track Your Startup Costs 

Not all startup expenses are created equal. Knowing which ones are deductible (and how to classify them) can help you maximize savings and avoid issues down the road, especially when it comes time to file your taxes or seek investors. 

Map Out Your Cash Flow

Cash flow can make or break your business, especially with seasonality, large capital investments, and slow customer payment cycles.  

Common Startup Cash Flow Challenges 

• Large upfront costs (equipment, land, permits, technology)
• Seasonal sales cycles vs. year-round fixed expenses
• Delays in receiving grants or investor funding
• Regulatory or approval timelines (e.g., FDA, USDA, EPA)

What to Include in Your Cash Flow Projections 

• Fixed Expenses - Rent, insurance, software subscriptions
• Variable Expenses - Labor, materials, fuel, utilities
• Capital Investments - Equipment, machinery, facility build-outs
• Revenue Timing - Payment schedules, seasonality, grant cycles
• Reserve Funds - 3–6 months of expenses set aside for unexpected needs 

Create Monthly Projections for at Least 12–18 Months  

• Base Case - Conservative forecast
• Best Case - Faster growth or lower costs
• Worst Case - Delayed revenue or unexpected expenses

Grow Your Team with Purpose

Early hiring decisions have a major impact on your financial health and operational flexibility. Focus on building a lean, high-impact team that supports your growth without overextending your budget. 

• Start with roles that directly drive revenue or reduce your workload - For example, a sales rep, operations lead, or production manager may deliver more immediate ROI than administrative roles.
• Consider outsourcing high-skill roles - Fractional support (CFO, IT, HR) gives you expert insight without the cost of full-time staff. While most early-stage companies aren’t in a position to take this step right away, you may need to during a capital raise to stay compliant with financial and legal requirements.
• Create a hiring plan tied to your financial projections - Forecast headcount growth alongside revenue and funding milestones, and avoid hiring based on gut feel.
• Don’t underestimate culture fit and adaptability - Early team members will shape your company’s values and processes. Look for people who can wear multiple hats and evolve with your business. 

Use the Right Tools From the Start 

Start by investing in the right tools early on that solve immediate pain points. Look for platforms that integrate well together and support automation as you grow.  

Core Business Function Tools: 

• Accounting + Payroll - QuickBooks, Gusto, ADP
• Inventory + Order Management - SOS Inventory, Sortly
• Reporting + Forecasting - Fathom, LivePlan, Microsoft Excel 

Ag-Specific Tools: 

• Farm Management Software - Granular, Conservis, Traction - for planning, budgeting, and tracking inputs
• Equipment + Asset Tracking - Trimble Ag Software, AgLeader
• Supply Chain + Compliance - CropTrak, FarmLogs - for traceability, certifications, and harvest data
• Weather + Field Insights - Climate FieldView, John Deere Operations Center

Partner with Lutz To Drive Growth 

Lutz is your trusted business partner, providing support and guidance every step of the way. Our suite of tailored business solutions for the agribusiness industry creates a solid foundation for growth and scalability. From entity selection and setup to cash flow management, employee compensation tactics, and technology consulting, we will help you develop a unique strategy that drives your company forward. Contact us to learn more or get started.

• Achiever, Learner, Individualization, Arranger, Relator

Tyler Hohenstein

Tax Manager

Tyler Hohenstein, Tax Manager, began his career in 2014. He has developed extensive expertise in tax and client relations while also assisting with staff training and development through his leadership on the Grand Island office’s internship program.

 

Specializing in tax consulting and compliance, Tyler focuses on industries such as agribusiness, construction, real estate, and vehicle dealerships. He takes pride in seeing his clients succeed and grow, providing comprehensive solutions that address their unique challenges. His thoughtful approach to problem-solving helps him create practical strategies for complex tax matters.

 

Tyler lives in Palmer, Nebraska, with his wife Kara and their cat Louie. Outside the office, he can be found playing golf, working cattle, and smoking meat. Tyler also occasionally assists his veterinarian wife as a vet assistant.

308.385.1134

thohenstein@lutz.us

• Strategic, Individualization, Futuristic, Ideation, Arranger

Ryan Wade

Tech Director

Ryan Wade, Tech Director, began his career in 1996. With a well-rounded background spanning finance, marketing, and technology, he brings a strategic mindset and a deep understanding of how to align modern solutions with real business needs. His experience across industries allows him to connect the dots and deliver practical, value-driven outcomes for clients. 

Bringing a unique blend of technology expertise and business experience, Ryan works alongside clients and internal teams to identify and implement solutions that streamline operations and support long-term growth. His responsibilities include guiding software selection, modernizing outdated systems, implementing automation, and enhancing reporting capabilities. 

 

At Lutz, Ryan leads the ongoing development and support of ThreadWorks, the firm’s secure, centralized document management platform that streamlines document exchange and improves the overall client experience. He also serves on the firm’s Tax and Audit Policy Committees, contributing to innovation efforts that improve service delivery across divisions. His ability to think strategically and bring structure to evolving initiatives continues to drive progress across the firm. 

 

Ryan lives in Omaha, NE, with his wife, Tiffany, and children, Ethan and Veronica. Outside the office, you can find him playing guitar, golfing, working out, and being a loyal Jaysker. 

402.778.7958

rwade@lutz.us

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