All businesses, regardless of their form, will encounter certain organizational costs. These costs can include developing a business plan, obtaining necessary licenses and permits, conducting market research studies, acquiring equipment, obtaining the advice of counsel, and other costs. Sole Proprietorship The sole proprietorship is the simplest form of organization, and the least expensive to establish….
Which Business Type is Right for You? One of the fundamental initial decisions a new business owner faces is choosing the type of business entity that will be best for the business. View the Business Entity Selection Chart → In choosing the most appropriate form of organization, a new Minnesota business owner will want to…
A Gallup poll published on July 29, 2011 finds that small business optimism is nearly non-existent due to growing recession fears. The data suggests that any small business confidence in present financial conditions has been eroded by concerns over future revenues and recessionary pressures. According to Gallup, small-business owners’ future expectations for their operating environment…
The Internal Revenue Service (IRS) should increase its examinations of personal tax returns that report losses from rental real estate activity, according to a new audit report released publicly today by the Treasury Inspector General for Tax Administration (TIGTA). TIGTA’s report, “Actions are Needed in the Identification, Selection, and Examination of Individual Tax Returns with…
If you represent a government entity that makes payments to contractors for products or services—or you are a contractor yourself—you may be interested in learning more about the new federal income tax withholding provisions under Internal Revenue Code § 3402(t). These new provisions will need such payers to withhold three percent (3%) from certain payments…
Wages for employees are covered by both Federal and state wage and hour laws. The federal law that governs wage and overtime requirements is the Fair Labor Standards Act (FLSA) and the regulations established under that act. In most cases, the FSLA does not require employers to pay minimum wage or overtime to employees who…
A recent case before the Minnesota Court of Appeals was important because it affirmed the right to sue a Minnesota city, township, or other municipality. In the case, Washington County sued the City of Oak Park Heights, claiming that the City had overcharged the county for water and sewer services. The County’s claim, in legal…
Most workers who are paid an hourly wage and work more than 40 hours in a 7-day work week must be paid overtime. When paying overtime, a business must pay at least one and one-half times the worker’s regular hourly rate. Generally, employers cannot provide “comp” pay instead of paying overtime. For those employers not…
The federal Family Medical Leave Act (FMLA) provides “eligible” employees up to 12 weeks of medical leave to take care of their own medical needs and those of certain family members. The FMLA also provides eligible employees up to 26 weeks of leave in the case of a family member who is an injured service…
The federal Family Medical Leave Act (FMLA) provides that if an employer violates the FMLA, the employee may be entitled to “liquidated damages”. Liquidated damages are in essence a penalty, are in addition to actual damages and are calculated as an amount equal to: Wages, salary, employment benefits or other compensation denied or lost to…
I am often asked whether an employer can fire an employee that is out on medical leave. Under the federal Family Medical Leave Act (FMLA), an employee who is eligible for leave under the FMLA is entitled to up to 12 weeks of medical leave. During the time the employee is on leave, he or…
Employers Must Promptly Pay Wages to Ex-Employees Minnesota Statutes require that employees be paid promptly upon the termination of their employment. The actual date that payment must be made depends upon whether the employee quit the job or was terminated. If the employee is fired, payment must be made immediately. See Minnesota Statutes section 181.13….
On May 9, 2011, the U.S. Department of Labor announced that it had come up with a new application for smart phones that will help employee keep track of their overtime. The free app is currently compatible with the iPhone and iPod Touch. The Labor Department will explore updates that could enable similar versions for…
This is an overview of the steps involved in starting an herb business in Minnesota: Form an LLC under the business name you pick (we charge a total of $620 for this) Obtain an EIN number for the LLC: EIN at the IRS Visit the Zoning Department at your city hall to ensure that you…
In this video, you get answers to these questions about separation agreements, also known as severance agreements: What is a severance agreement? What questions should you ask before signing a severance agreement? What are you agreeing to when signing a severance agreement? What do attorneys look for in a severance agreement? Introduction Often a business…
Introduction With the advent of the internet, it is easy to find hundreds of samples of legal forms like contracts online for free. Some wonder why they should spend the money hiring an attorney to draft a partnership agreement, for example, when they can just as easily fill in the blanks on a form. If…
Prescription Drugs and Pregnancy Most women are aware of the need to monitor drugs, alcohol, and even their diet while pregnant. Whatever they ingest could affect the development of the baby. But, what about prescription drugs? Most women assume their doctor knows whether a prescription is safe to take during pregnancy and will warn her…
Most people are familiar with basic overtime laws – if you work more than 40 hours in one work week, you are entitled to pay of time-and-a-half for all hours exceeding 40. People who work in management, professional, and other fields may be exempt from overtime requirements. Some employers will try to classify employees as…
Pregnancy Discrimination Pregnancy itself can be an exciting, stressful, overwhelming experience. It also creates added stress for working women who have to decide how to tell their employer they are expecting and coordinate maternity leave. What happens when an employer is less than accommodating to a pregnant employee? Federal law provides that an employer cannot…
In Minnesota, a franchise is a popular way of starting or growing a business. Franchises include product and service companies. Special laws have been created to protect business owners buying into a franchise. Minnesota Franchise Laws Many states, such as Minnesota, have strict franchise laws. Minnesota has enacted a franchise statute called the Minnesota Franchise…
Minnesota Auto Insurance Law Minnesota requires all drivers to maintain a minimum level of liability insurance in order to operate a vehicle. Most people do have at least the minimum coverage of $30,000 and many have even more coverage. What is the benefit of requiring insurance? Car accidents are an inevitable part of driving. No…
Choosing a daycare professional can be a difficult decision. It is hard for many parents to trust a stranger to care for their children. If a parent later discovers that the daycare has abused, mistreated, or neglected their child, it can be very traumatic. Parents may feel guilt about entrusting their child to the daycare…
Many times people struggle with what to do if they are injured by the negligence of a friend or family member. It can strain a relationship to sue someone, to say the least. What most people recognize, however, is that your friend or family member’s insurance company will likely handle the case. People purchase insurance…
Litigation can be an intimidating prospect. The court system can be confusing for people who are unfamiliar with it. There are several procedural rules and time limits that you must follow. Litigation can also be expensive. There are a number of different kinds of fee agreements, depending on your situation. Do not let the fear…
Perhaps you have seen the commercials on TV with the people yelling, “It’s my money, and I want it NOW.” The ads are targeted towards people who are involved in personal injury lawsuits who are expecting settlements. They also apply to people who have what are called structured settlements – basically meaning that your settlement…
I am often contacted by small business owners who want to know the process for selling a business, the legal issues, and tips to ensure the process goes well. Like any significant transaction, there are a lot of details that go into the sale of the business. Often the seller hasn’t actually thought through all…
Just because you are legally owed money, doesn’t mean it is easy to get that money. You have probably heard the saying, “you can’t squeeze blood from a turnip.” If the debtor has no money and no assets it will be difficult to get your money. On the other hand, what if your debtor is…
Each of the 94 federal judicial districts handles bankruptcy matters, and in almost all districts, bankruptcy cases are filed in the bankruptcy court. Bankruptcy cases cannot be filed in state court. Types of Bankruptcy Cases Each bankruptcy court hears a variety of bankruptcy cases. Debtors applying to the bankruptcy courts for financial relief may seek…
If you have a judgment you are trying to collect, and the debtor has funds at a bank or other financial institution, you may garnish the debtor’s account. Obtaining the judgment and finding out where the debtor has assets is probably the most difficult and expensive part of debt collection. In order to garnish a…
Once you have a judgment against a debtor, and know the debtor’s assets, you still have to collect on your judgment. One way to do that is to garnish funds the debtor has at a bank or other financial institution. The Garnishment Procedure: Step 1 – The Summons If the debtor has funds at a…