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 […]
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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 […]
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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 […]
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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 […]
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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 […]
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Minnesota Employment Rights: Where to Get Help
Table of Contents IntroductionWagesBenefitsPersonnel FilesEmployee or Independent ContractorWorking ConditionsWhistleblower ProtectionEmployment DiscriminationNew 2019 Employee Rights Laws in MinnesotaNew protections for employeesConclusion Introduction The following material was prepared by the Minnesota Office of Attorney General to assist those seeking legal help for violations of Minnesota employment law. Wages Some employees receive less in wages than they expect. […]
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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 […]
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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 […]
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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. […]
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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 […]
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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 […]
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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 […]
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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 […]
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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, […]
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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 […]
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Cryptocurrency Tax FAQ: Your Bitcoin Income vs. the IRS
The following FAQ addresses common questions about when cryptocurrencies are taxed and whether conversions between cryptocurrencies qualify as like-kind exchanges. Table of Contents Is transferring funds between cryptocurrencies taxable?Is a cryptocurrency conversion a like-kind exchange?Does the IRS View Cryptocurrencies as Money or Investment Property?Does the IRS Provide Tax Guidance on Taxing Cryptocurrencies?What Was the IRS’s First Position […]
Continue reading Steps After Filing a Federal Trademark Registration Application
After you file an application for a federal trademark registration, you need to wait for the USPTO to begin processing. The entire process usually takes 9-12 months but can take longer if complications or “office actions” arise. This article explains the steps that an application for a federal trademark follows. Table of Contents USPTO Reviews […]
Continue reading Getting an EIN: Personal Service Corporation vs. S Corp
This article is for people wondering whether to select “S Corporation” or “Personal Service Corporation” when applying for an EIN on the IRS.gov website. Let’s assume you are in the process of setting up an S corporation to provide professional services (e.g. law firm or chiropractic office), and now you need an EIN number. You visit […]
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Religious Clothing and Attire at Work: Legal Tips
This article answers questions about how federal employment discrimination law applies to religious dress and grooming practices, and what steps employers can take to meet their legal responsibilities in this area. Examples of religious dress and grooming practices include wearing religious clothing or articles (e.g., a Muslim hijab (headscarf), a Sikh turban, or a Christian […]
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How to Avoid Religious Discrimination in Your Company
Religious discrimination affects all faiths: Christian, Islamic, Hindu, Buddhist, Jewish, and more. Employers have liability for their policies and procedures related to how each employee’s religion affects work. Below are best practices for employers and managers in the United States. Table of Contents Disparate Treatment Based on ReligionEmployer Best PracticesReligious HarassmentEmployer Best PracticesEmployee Best PracticesReasonable […]
Continue reading Dealing with Employee Xenophobia in Your Business
Xenophobia is simply fear of foreigners. Conflict abroad often increases xenophobia in the workplace. This fear may manifest itself in different ways among your employees: distrust, anxiety, or discrimination. On the surface, xenophobia can seriously affect your company’s culture. It can also get your company in legal trouble. For example, the Equal Opportunity Commission (EEOC) has sued […]
Continue reading Is ‘Indemnify’ the Same as ‘Hold Harmless’ in Minnesota Statutes?
Table of Contents Is ‘Indemnify’ the Same as ‘Hold Harmless’ in Minnesota Statutes?Legislative Intent Based on Law DictionaryOld Approach: Employer Reimbursement Under Common LawNew Approach: No Employer Reimbursement Under Minnesota Statutes Is ‘Indemnify’ the Same as ‘Hold Harmless’ in Minnesota Statutes? Yes, “indemnify” generally means the same as “hold harmless.” When considering whether “indemnify” is […]
Continue reading Can Minnesota Employers Sue Employees for Negligence & Damages?
Table of Contents Are Employees Liable to Their Employers for Negligence?Can a Minnesota Employer Sue an Employee for Damages Caused by Negligence?Are there any exceptions to suing employees for negligence?Where is the Law Providing that Employees are Not Liable to Employers for Negligence?1. Employers Must Indemnify Employees2. “Indemnify” includes “Hold Harmless” Are Employees Liable to Their […]
Continue reading A Guide to Quasi Contract in Minnesota
What is a Quasi Contract? Quasi contract is another term for a contract implied in law. A contract implied in law is where “a promise is imputed to perform a legal duty, as to repay money obtained by fraud or duress.” Hercules Inc. v. United States, 516 U.S. 417, 424 (1996). What is a Quasi Contract Actually a Contract? A […]
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A Guide to Quantum Meruit in Minnesota
Table of Contents What is Quantum Meruit?How is Quantum Meruit Used in Minnesota?What Amount is Owed for Quantum Meruit?How is Quantum Meruit Different from a Contract?What Claims are Related to Quantum Meruit? What is Quantum Meruit? Translated, quantum meruit means “as much as he merited” or “as much as he/she deserved.” In law, quantum meruit is a […]
Continue reading A Guide to Quantum Valebant in Minnesota
Table of Contents What is Quantum Valebant?What is Quantum Valebant in Minnesota?Is Quantum Valebant the Same as a Contract Implied in Fact?When Can Quantum Valebant be Used?What Legal Terms are Related to Quantum Valebant? What is Quantum Valebant? Quantum valebant is exactly like quantum meruit, but with one important distinction: quantum meruit applies to the value services, […]
Continue reading Agreement Implied in Fact vs. Implied in Law – What is the Difference?
Introduction What is the difference between an agreement implied in fact and an agreement implied in law? A contract implied in fact is where there is no express contract, but the conduct of the parties makes it clear they both understood they had a deal. A contract implied in law is where there is no contract per se, but at least one […]
Continue reading Nonprofit Organization Members Have These 4 Legal Rights
Members of Minnesota nonprofit organizations have a variety of legal rights established in the Minnesota Statutes. These rights are especially important when the members have a dispute with their organization’s board of directors. The following are a few examples of some of your rights as a member of a nonprofit organization in Minnesota. 1. You […]
Continue reading What Are Uncovered Assets?
An uncovered asset is simply property or something else of value that has been revealed to exist. Uncovered means found or discovered. Assets are generally anything of value including money personal property real property (real estate) intellectual property For example, John may hide from his relatives the fact that he owns a boat. Sarah may […]
Continue reading 2018 Tax Changes for Business Owners
Congress approved the Tax Cuts and Jobs Act on December 22, 2017, which provided for some of the most significant tax reform in recent memory. It affects nearly all taxpayers in every circumstance and could affect how you plan for your future as well. Over the next few posts, we will analyze a few of […]
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