Taxation of Revoked Tax-Exempt Organizations: the Synanon Case

Table of Contents BackgroundTaxation of ContributionsTaxation of Income from Activities that are not Profit-OrientedExecutive CompensationConclusion1990 UPDATEB. Taxation of Revoked Tax-Exempt Organizations1. Recent Developments2. In General3. Taxable Income of the OrganizationA. Business and Investment Income (And Expenses)B. Contribution IncomeC. Contribution and Other Exempt Activity ExpendituresD. Expenses for Nonexempt Purposesa. Noncompensatory Payments to Principalsb. Political Activitiesc. Illegal […]

Lawyer Conflicts of Interest: A Guide with Tips & Scenarios

Lawyers encounter a wide variety of scenarios with a conflict of interest. Lawyers often struggle with the ethical way to respond. Fortunately, there is an outstanding, free resource available to attorneys seeking guidance on conflict of interests: Freivogel on Conflicts: A Guide to Conflicts of Interest for Lawyers. This is invaluable guidance for lawyers facing ethical […]

Works Made for Hire

To register a work with the U.S. Copyright Office, you generally must identify the author or authors of that work. In addition, you must identify the party that owns the copyright in the work. Ordinarily, the author is the person or persons who actually created the work you intend to register. “Works made for hire” […]

How to Prepare for a Minnesota Unemployment Appeal Hearing

Table of Contents Prepare for Your Telephone HearingPrepare for the HearingSubmitting Evidence to the JudgeRequesting a SubpoenaContact Information for Everyone in the HearingOn the Day of the HearingAfter the HearingFrequently Asked QuestionsWhat if I need an interpreter for the hearing?What if I need an accommodation?Can I stop the appeal process?Who should I have as a […]

Tenant vs. Landlord: Mold or Asbestos in Rental Property

Does mold or asbestos relieve a tenant from paying rent to a landlord in Minnesota? Table of Contents Rental Property Must be ‘Habitable’Is Living with Mold or Asbestos Considered ‘Uninhabitable?’Mold or Asbestos Attorney HelpMold in Rental HousingWhat Is Mold and What Causes It?What Are the Health Concerns?What Can I Do as a Tenant?What Can Be […]

How to Merge Nonprofit Organizations

How to Fight Lawsuit Dismissal of Minnesota Case Not Filed in 1-Year

Under Rule 5.04 of the Minnesota Rules of Civil Procedure, a lawsuit not filed in court within one year is dismissed with prejudice, which means with finality: Any action that is not filed with the court within one year of commencement against any party is deemed dismissed with prejudice against all parties unless the parties […]

How a Special Litigation Committee Protects Minnesota Companies

 Setting up a Special Litigation Committee (“SLC”) is a great way to deal with a conflict of interest in a company. A Special Litigation Committee allows the company to keep control of legal claims and address issues in a way that puts the best interests of the company first. The main idea behind a […]

Sales Rep Commissions: Employee Legal Rights to Wages in Minnesota

 Sale representatives paid on commissions have significant legal rights in Minnesota. This article explains the legal protections available to sales representatives who are employees in Minnesota. To determine your rights, you first need to determine whether you are an independent contractor or employee. If you are an independent contractor (not employee), you may have […]

Accidental Partnership: Are You in a De Facto Business Partnership?

 Table of Contents OverviewStoryLegal AnalysisAdditional ResourcesVideo Transcript Overview This story illustrates how two entrepreneurs can accidentally find themselves in a partnership. A partnership doesn’t need to be registered with the state. A partnership can begin whenever two or more people carry on as co-owners a business for profit. Story Amber and Jen discussed opening […]

The Contingency Fee Agreement is Relevant When an Attorney is Fired

The Minnesota Supreme Court established an eight-factor test to determine a lawyer’s contingency fee after a client fired the lawyer shortly before settling case. The Court held that, under quantum meruit, the “fee arrangement existing between counsel and the client” is one of the factors. Minnesota’s Contingency Fee Factors for Attorneys The eight factors are time […]

Can Minnesota Lawyers Share Legal Fees? Yes.

Yes. Rule 1.5(e) of the Rules of Professional Conduct provides as follows: A division of a fee between lawyers who are not in the same firm may be made only if (1) the division is in proportion to the services performed by each lawyer or each lawyer assumes joint responsibility for the representation; (2) the client […]

Succeeding on Purpose: a Workshop

by Latitude Often CEOs and other leaders want to lead with a purpose greater than profit, but the majority struggle to integrate purpose into their everyday operations. In this workshop, Glenn Deering—Exec. Director of Strategy and Purpose Innovation at Latitude—will lead attendees through interactive exercises that introduce proven ideas and methods for operationalizing a purpose […]

Free Renter Legal Help: Lawyers Defend Minnesota Tenant Rights

Here are some outstanding resources for renters (informally referred to as “renters”) and attorneys representing tenants against landlords in Minnesota. Let’s face it, landlords often have the advantage because they select the lease they require of tenants. For example, I regularly represent landlords. However, tenants have some strong law on their side. These resources are […]

How the ‘Business Judgment Rule’ Protects Directors and Officers

If you are an officer or director accused of making a bad decision, the “business judgment rule” is an important defense to understand. Table of Contents Directors and Officers Owe a Duty of CareThe Business Judgment Rule Protects Directors and OfficersThe Disney ExamplePractical Tip for Directors and OfficersDisinterestedInformedBest Interests of the CorporationVideo Transcript Directors and […]

Registered Agent: A Physical Office for Your Business

Every Minnesota business needs to have an address on record with the Secretary of State. This is called the registered office. Instead of providing a physical address, you can use a registered agent service. This article explains the details. Table of Contents What a registered office?What is a registered agent Service?What are some options for registered […]

The Torrens Title System Minnesota: The Short Course for Surveyors

August 2009 A surveyor colleague of mine came back from a continuing education class a while ago and said that the lawyer instructor wished out loud that the Torrens system would go away. The lawyer, like some surveyors, did not like dealing with the Torrens system. For many surveyors and lawyers, the Torrens registration system […]

Is Real Estate Broker/Agent Fee-Sharing Legal in Minnesota?

Among real estate agents and brokers, some types of referral fees, commissions, and fee sharing are permitted. However, other types of fee sharing are prohibited by Minnesota real estate statutes and regulations. Whether fee-splitting is a “legal commission” or “illegal kickback” depends on the context. Minnesota’s primary authority on sharing real estate agent and broker […]

What’s at the End of Your Business Name Besides INC or LLC?

When you name your LLC or corporation, you need to decide which entity designation to include at the end. For example, “Angie’s Plumbing” might become “Angie’s Plumbing LLC” to indicate Angie’s Plumbing is a limited liability company. This page lists the entity designations when starting a business in Minnesota. Table of Contents CorporationProfessional CorporationLimited Liability CompanyProfessional […]

Minnesota Employment Rights: Where to Get Help

The following material was prepared by the Minnesota Office of Attorney General to assist those seeking legal help for violations of Minnesota employment law. Table of Contents WagesBenefitsPersonnel FilesEmployee or Independent ContractorWorking ConditionsWhistleblower ProtectionEmployment Discrimination Wages Some employees receive less in wages than they expect.  This might occur because an employer does not pay for […]

Reasonable Attorney Fees in Minnesota vs. Lodestar Factors

Throughout the United States, many jurisdictions use the Lodestar factors as a standard to determine whether attorney’s fees are reasonable. The Lodestar standard has been part of the common law, refined by courts over the years. Minnesota’s approach to determining whether attorney’s fees are reasonable generally aligns with the Lodestar factors. Minnesota Standard Minnesota’s approach […]

Minnesota Private Attorney General Statute: Get Attorney Fees Back

Table of Contents What is a private attorney general statute?Where is Minnesota’s private attorney general statute?When can attorney’s fees be recovered?Must the public benefit from your case?Will courts consider how much the public will benefit? What is a private attorney general statute? A “private attorney general” statute authorizes a court to award attorney’s fees to […]

5 Tips to Delegate and Elevate Your Leadership Team

If you’re running EOS® (the Entrepreneur’s Operating System) in your business, you have experienced firsthand how beneficial it can be to your company’s growth. Like all learning tools and systems, to really gain strong traction, the challenge lies in supporting your team on the ground level with the day-to-day execution and implementation of EOS  principles. […]

Minnesota Charity Law: Guide for Nonprofit Board of Directors

Table of Contents Guide for Charity Board MembersIntroductionTo Exercise the Proper Duty of Care1. Active Participation2. Committees3. Board Actions4. Minutes of Meetings5. Books and Records6. Accurate Record Keeping7. Charitable Assets8. Resources9. InvestigationsTo Exercise the Duty of Loyalty1. Conflicts of Interest2. Written Policy3. Loans4. Corporate Opportunity5. Internal Revenue CodeTo Exercise the Duty of Obedience:1. State and […]

Overview of Minnesota Nonprofit Law

Minnesota nonprofit organizations are governed by the Minnesota Nonprofit Corporation Act, Minn. Stat. ch. 317A.  A nonprofit corporation’s purpose and activities must serve the organization’s mission to benefit the public, and may not be operated to profit other persons or entities. Table of Contents Tax-Exempt Status of NonprofitsNonprofit GovernanceKey Laws for Minnesota NonprofitsAdditional Resources Tax-Exempt Status […]

Free Private Meeting Room Spaces in the Twin Cities

Whether you are a real estate agent, solo attorney, or consultant, you often need a private room outside your home to meet with clients. Fortunately, the Twin Cities business community and library systems offer a variety of places for you to meet with your clients and potential clients. Highlights include certain coffee shop locations with […]

Accidents and Personal Injury

When you have been hurt in an accident, life can be overwhelming. You probably have medical bills. You may have a damaged car, truck, or motorcycle. You might miss work because of your injury. The stress, anxiety, and pain may also affect your performance at work, relationships at home, and other lifestyle activities. Sadly, insurance […]

Are clickwrap or browsewrap contracts enforceable?

Table of Contents Are Online “Click to Accept” Agreements Valid?How Clickwraps and Browsewraps Are UsedCautionary TalesBrowsewrap AgreementsClickwrap AgreementsEndnotes Are Online “Click to Accept” Agreements Valid? This is an archived copy of an article that originally appeared in Communications Lawyer, published by the ABA in January, 2015. From the Chair: “Click Here to Accept the Terms of […]

How is a Social Club Taxed? IRS Guidance on 501(c)(7)

Table of Contents IntroductionTraditional vs. Nontraditional ActivitiesFACTSSituation 1: Situation 2: LAW AND ANALYSISCONCLUSIONSTimber SalesTraditional or Nontraditional?TIM-BERRRRRRRR! – Will Exempt Status Fall?Reinvestment OptionAdvertising IncomeBackgroundAllocation of Advertising ExpensesDiscriminatory Social Clubs – IRC 501(i) Introduction Social clubs are exempt from federal income tax under IRC 501(a) as organizations described in IRC 501(c)(7) if they are “organized for pleasure, recreation, […]

Paying Minimum Wage & Overtime to Home Care Workers: How to Follow FLSA Rules

The following article explains minimum wage and overtime issues related to home care works, including FLSA rules that apply to employees. Table of Contents Minimum wageOvertime payHours WorkedRecordkeepingConsequences of not complying with the FLSA Minimum wage As of early 2016, the federal minimum wage is $7.25 per hour. That means any worker who is covered by the […]