Your Minnesota Small Business Attorney
Small Business Tips
When a Business Fails
In our current economy, it seems every time I turn around a business is closing, and it is usually the small, independent business that is affected. One such business, a pizza carryout and delivery restaurant in my neighborhood, just closed and I couldn’t help feel saddened by this, and not just because my weekly pizza source has been cut off. Even though this restaurant was not my client I couldn’t help but reflect on what they could have done differently from a legal perspective in order to keep their doors open. First, when leasing a retail or office space negotiate a rent that has a lower rent initially with incremental increases for each subsequent year that...
Read MoreStarting a Business on Your Own
We use the Internet for just about everything nowadays, it is second nature for most of us. As such, I am never surprised when a new client tells me they formed their limited liability company on line, using an online service. On its face, these services look good – you get a fancy book that contains your articles of organization, pretty blank stock certificates, even a corporate seal – plus they are relatively inexpensive. But once you peel back the embossed layers you find that this online service used the Secretary of State’s form articles of organization, the “operating agreement” which is supposed to address how a member can withdraw doesn’t actually...
Read MoreCollections
Documenting Collection Efforts As a small business owner managing your accounts receivables is an incredibly important part of your business. It affects not only your cash flow but also your ability to make payroll, order parts, maintain subscriptions, etc. I hope that all your business clients/customers pay on time, but if they don’t here is a tip to help you in the collection process. If you find yourself in the untenable position of having to make concessions for your customers from paying on time, please be sure you document any alterations in credit terms. Why? Because if you ultimately find yourself in court to enforce collection, the party with the best...
Read MoreProper Use of Your Company’s Name
When running your business, please make sure to use the company’s proper name in all of its documents (including business cards, letterhead, contracts, website, etc.) This may seem overly simplistic, but I assure you it is not! Just like you were given a birth certificate when you were born, when you created your company (assuming it is not a sole proprietorship) you filed articles of incorporation or articles of organization with the Secretary of State. The name stated on these forms is the company’s real name, and that is the name that should be used on your documents. Why is this so important? If you don’t use the company’s “official” name it can be used...
Read MoreSchool’s out for Summer!
Hiring and Using Interns. Small businesses are often strapped for cash and hiring and retaining employees may be outside your comfort zone and budget. A potential work around may be to hire interns or students to help you in your business, especially over the summer when many students are out of school. The general rule is that interns may be unpaid so long as they do not participate in productive work or displace the work of another employee. An individual must meet each one of the following factors to be considered a student or trainee (as opposed to being considered an employee): 1. The internship, even though it includes actual operation of the facilities of the...
Read MoreWhy I joined MetroIBA
I live in the Twin Cities. The Minneapolis-St. Paul community is a fairly large metropolitan area. Most days we all go about our own business, but when tragedy hits or one of our many sports teams actually does well the community comes together and suddenly we are a small town. We care about one another, we celebrate or mourn as a whole, we support one another and lift each other up. It feels good. Then time passes and everyone goes their separate ways again. That good feeling is diminished, forgotten. But I have found a way to keep that magic alive and a part of my daily life. About a year ago I joined an organization called Metro Independent Business Alliance....
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