Your Minnesota Small Business Attorney
Strategic Planning
Does My Business Need a Business License or Permit?
Your startup or expanding business may need to obtain one or more business licenses or permits. Licenses can range from basic operating licenses to very specific permits. While business licensing requirements vary from state to state, some of the more common type of licenses are: occupation and professional licenses (such as building contractors, accountants, cosmetologists, lawyers); licenses based on products sold (such as liquor licenses, gasoline, lottery tickets); tax registration (for retail sales tax license); or state business license (for tax purposes). Regulations vary by industry, state and locality, so be sure to understanding the licensing requirements where...
Read MoreUse Independent Contractors, But Be Smart About It.
As a startup or emerging business, it is not always cost effective to hire employees due to the costs associated with paying various taxes, covering individuals under the company’s health plans, etc. A way around this is to hire independent contractors. An independent contractor is not an employee, and is therefore outside of the Fair Labor Standards Act’s (“FLSA”) minimum wage and overtime requirements. However, misclassifying an individual as an independent contractor can come with severe penalties. For example, you may be liable for unpaid taxes, overtime and minimum wage payments, penalties and costs. The test for determining employment status for purposes of...
Read MoreProtecting your Ideas and your Business
You established your business because you have a great product/technology/service, etc. Because this is your business (your baby, if you will) you want to show it off and tell the world about what you have to offer. But what if in your enthusiasm you disclose confidential or proprietary information about the technology of the product – and the person you disclosed this information to turns out to be a competitor? Such a disclosure could be ruinous for your company. This is not to say don’t talk about your product or information, but instead to simply be aware of who you are talking to and don’t disclose your nonpublic business information (such as business plans,...
Read MoreWorking with your Attorney
I admit it, people don’t always want to talk to me! Not because they don’t like me but because I am an attorney and as a profession we have gotten a bad rap – people think of attorneys as a meter running. Just as it is uncomfortable taking a taxi somewhere (one never does know how much a cab ride is going to cost) small business owners are often hesitant to call because of the potential cost of that phone call! But this doesn’t (and shouldn’t) need to be the case. There are many issues and questions that arise in starting a new business and if you don’t address those issues up front they could have severe consequences for you later on. Case in point: hiring...
Read MoreChoosing The Right Entity For Your Business
There are many different factors to consider when choosing the best form of business structure for your business. Again consulting with your accountant and attorney is strongly advised because this decision will have long-term implications. Consider: What are the tax implications? Will your business be vulnerable to lawsuits/disputes? What type of control over the business do you wish to have? Will you be hiring employees? Do you need to seek financing? Sole Proprietorship – a business owned by one person who is personally responsible for the debts and obligations of the business. Partnerships – A general partnership is created when two or more persons carry on the...
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