Your Minnesota Small Business Attorney
Strategic Planning
When it is Time to Shut the Doors
Not every business succeeds, that is simply a reality. It may be that the shareholders no longer wish to continue in business or the business is no longer viable. Your company may also be subject to administrative dissolution if you fail to meet annual corporate renewal filing requirements. This is the first in a series of three articles discussing voluntary dissolution and administrative dissolution. A third type of dissolution is a remedy for minority shareholders and creditors which is beyond the scope of this article. There are two forms of voluntary dissolution: dissolution without outstanding shares and dissolution with outstanding shares. (Note: this article...
Read MoreThe Top Five Legal Issues Business Owners Need to be Concerned About
There are a lot of things a business owner is concerned about in running his/her business. Off the cuff I can name five: generating sales, the bottom line, being innovative, developing market share and making your company a fun place to work for your employees. These are critical to growing your business. As a lawyer representing small businesses and startups, I routinely see at least five recurring legal issues that often escape the business owner – it may not be all five, but invariably along the way at least one was missed. And though we may have talked about all of these in the past, it is worth repeating. In no particular order: Business Owner Exit...
Read MoreInsurance Options for Small Business Owners
A small business, just like any business, is exposed to a variety of risks. A small business owner should take the necessary acts to mitigate risk by purchasing insurance. Without it, your business may not survive financially if faced with a liability. Choosing insurance might feel overwhelming because there are so many options. Here is a quick overview of some typical business insurance plans: Commercial Property Insurance protects business property and inventory against physical loss or damage by theft, accident or other means. Building and Personal Property Coverage covers direct physical loss of or damage to your building, business personal property at the premises...
Read MoreKnow Who You Are Dealing With
I usually trust my gut when it comes to working with people, my initial first impression is usually right. However, in business dealings while your gut is still very important it shouldn’t be your only resource in determining whether to move forward with a potential employee, potential business partner, customer, vendor, etc. Instead do your homework, ask questions, even do some background research so you can feel confident moving forward with that person/company. When hiring employees always check their references, and depending on the position, you may also want to perform a background check on the candidate. This is especially important for positions that will be...
Read MoreContracts Overview: Receiving a Contract
A small business owner will have to deal with many contracts: lease agreements, purchase agreements, distribution agreements, licenses, etc. Sometimes your business will draft a contract or negotiate with another party. The most common situtation, however, is receiving a contract to sign. RECEIVING A CONTRACT When a contract arrives on your desk, you might feel comfortable skimming over the legalese and signing your name. Don’t do it! The contract drafter structures the contract in their benefit. Therefore, a contract that ends up on your desk doesn’t protect your business. What should you do? Read over the contract and make changes. Many business owners feel...
Read MoreEstate Planning for Small Business Owners
Many of our clients are just starting their first business. A new business owner is excited and hopeful and the last question we’d like to ask is “What happens if you can’t run your business?” Estate planning, however, is a necessary part of a business plan. In an emergency, an estate plan will successfully direct business partners, employees and family members to keep a business afloat in an owner’s absence. Here are three estate planning documents to protect a business owner during their lifetime: 1) Power of Attorney: This document gives another person the power to make business, financial and legal decisions on a business owner’s...
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