Minnesota bankruptcy law works hand-in-hand with U.S. federal bankruptcy law. For this reason, the information provided here explains federal and Minnesota bankruptcy laws as they generally apply to Minnesota residents and Minnesota business owners. This bankruptcy information is provided for general educational purposes only. If you are contemplating bankruptcy, you should obtain advice from a…
The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: In re Carlson, 414 B.R. 508 (Bankr. D. Minn. 10/09/09) (Kishel, J.). Case Summary: Court has no Jurisdiction over Counterclaim The debtor, Carlson, filed a chapter 7 petition on January 19, 2009. At the…
The following is a summary of a Minnesota bankruptcy case or a case relevant to Minnesota bankruptcy law. Minnesota Bankruptcy Case: Stabler v. Beyers (In re Stabler), 418 B.R. 764 (B.A.P. 8th Cir. (So. Dak.) 11/30/09) (Venters, J.). Case Summary: Abstention is Proper Where Party is Forum-Shopping The Eighth Circuit BAP affirms the South Dakota…
The bankruptcy process is intended to provide individuals a way out from under mounds of debt and an opportunity to rebuild their lives, and their credit, and begin daily life with a fresh start. Most bankruptcies are filed under chapters 7, 11, and 13 of the Bankruptcy Code. Chapter 7 Basics Chapter 7 bankruptcy is…
A discharge is essentially an order from the bankruptcy court informing a debtor and the debtor’s creditors that the debtor is no longer legally required to repay the debt. The debtor is no longer legally responsible for the debt. Many common types of non-dischargeable debt include tax debt, debts the debtor did not list for…
It’s not uncommon for business owners to encounter unforeseeable problems. Owning a business is a risk. Business owners considering bankruptcy often find themselves dealing with the psychological factors, considering alternatives, and trying to understand the process. This article summarizes these areas. The Psychological Toll Often the thought of filing bankruptcy triggers anxiety, stress, and sometimes…
I was recently asked whether a personal guarantee could be discharged in bankruptcy. The answer is fairly simple, but it depends on who filed for bankruptcy. There are two simple rules to keep in mind: The person who files for bankruptcy has his or her debts discharged. The person who does not file for bankruptcy…
The ultimate benefit in bankruptcy proceedings is probably the discharge or the permission from the bankruptcy court not to repay certain debts. The bankruptcy court eliminates these debts so that: The debt no longer legally needs to be repaid, and The creditors of that debt are not permitted to attempt to collect that debt. There…
This article explains requirements for a franchisor starting a franchise in Minnesota. If you buying a franchise, visit tips on buying a franchise in Minnesota. Item 23: Receipts Like the UFOC Guidelines, the amended Rule requires franchisors to obtain a signed receipt for the disclosure document furnished to each prospective franchisee. To facilitate electronic disclosures, the definition…
Taxing Jurisdiction & Year Authorized Rate Approval required Use of Revenues/Other Comments Bloomington – 1986 1.0% City council approval Mall of America site improvements. This tax was only authorized for sales at the Mall of America site. The city did not impose the tax before legislative authority was repealed in 1987. Thief River Falls –…
This is a simple guide to understanding Statute of Limitation laws in Minnesota with links for more information. A statute of limitation is a state or federal law (statute) that puts a deadline (limitation) on how long after an incident a legal claim or charge may be brought. There are two broad categories for these…
In general, a financial institution is any national or state bank, bank holding company, savings and loan, or any other corporation that does business that a bank or other financial institution would be authorized to do. Financial institutions complete M8A the same way as other S corporations, except for lines 4 and 14. Line 4—Property…
Discovering a Debtor’s Hidden Assets 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,…
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…
The following laws apply to minors in Minnesota. The following information and education, but is not legal advice. When faced with a legal issues, you should talk with an attorney. Control of a Minor’s Earnings or Property Minor’s Contracts A parent or guardian may claim a minor’s wages by notifying the minor’s employer. Otherwise, the…
Complete Part I whether or not the entity is seeking relief under Rev. Proc. 2009-41 or Rev. Proc. 2010-32. Line 1. Check box 1a if the entity is choosing a classification for the first time (i.e., the entity does not want to be classified under the applicable default classification). Do not file this form if…
Name Enter the name of the eligible entity electing to be classified. Employer identification number (EIN) Show the EIN of the eligible entity electing to be classified. Do not put “Applied For” on this line. Note. Any entity that has an EIN will retain that EIN even if its federal tax classification changes under Regulations…
File Form 8832 with the Internal Revenue Service Center for your state listed below. In addition, attach a copy of Form 8832 to the entity’s federal tax or information return for the tax year of the election. If the entity is not required to file a return for that year, a copy of its Form…
In this video, you get answers to these questions: Does this law only protect the rights of manufacturer reps? Does this law only protect the rights of reps who live in Minnesota? Can sales reps sue for violations of the Minnesota Termination of Sales Representatives Act? Can a manufacturer sue for violations of the…
Complete M8A to determine your Minnesota source income and minimum fee. Note: If you conduct all your business in Minnesota, check the box above line 1. Complete columns A and B and enter 1 1.00000 (for 100 percent) on line 18, column B1 (and the remaining columns, as needed). If a qualified subchapter S subsidiary…
Additional Prohibitions In addition to the prohibitions concerning the making of financial performance representations, discussed above, the amended Rule prohibits seven specific acts or practices. Each of the seven is discussed immediately below. Prohibition Against Contradictory Information The amended Rule prohibits a franchise seller from making any statement that contradicts the information disclosed in the…
Item 18: Public Figures Item 18 of the amended Rule requires the disclosure of certain information about a public figure’s involvement in the franchise system. This covers public figures who lend their name or image to the franchise, control or manage the franchisor, or invest in the franchisor. Who Qualifies as a “Public Figure”? A…
Apportionment is a key feature of state corporate taxes Apportionment formulas are important features of state corporate income taxes. They determine how much of a business’s income is taxable and affect the incidence and competitiveness of the tax. Minnesota apportions corporate income using the Minnesota proportions of the corporation’s sales, payroll, and property factors to…
Definition of Franchising Franchising is a method of marketing and distributing goods and services. Franchises are offered and sold for many types of businesses, including services, retail trade, finance, real estate, transportation, and communications. A franchise is broadly defined as a contract or agreement between two or more persons by which the franchisor (the seller),…
Franchise Disclosure Document Belmont Mufflers, Inc. A Minnesota Corporation 111 First Street Jackson, Minnesota 55000 (111) 222-3333 franchiseofficer@belmont_mufflers4u.com www.belmont_mufflers4u.com Belmont Mufflers, Inc., repairs and installs motor vehicle exhaust systems. The total investment necessary to begin operation of a Belmont Mufflers franchise is $100,000. This includes $42,000 that must be paid to the franchisor or affiliate….
The “Required Payment” Element The last of the three definitional elements of a franchise covered by the amended Rule is that purchasers of the business arrangement must be required to pay to the franchisor (or to an affiliate), as a condition of obtaining a franchise or starting operations, a sum of at least $500 at-5…
Fractional Franchise Exemption The amended Rule exempts the sale of fractional franchises. A fractional franchise relationship is created when the following two elements are present at the start of the relationship: The franchisee, any of the franchisee’s current directors or officers, or any current directors or officers of a parent or affiliate, has more than…
Isolated Sales and Limited Offerings Sales by a nonissuer of securities to no more than ten purchasers in Minnesota during any period of twelve consecutive months are exempt from registration as are nonissuer transactions by or through a broker dealer where the security has been in the hands of the public for at least 90…
Sample Item 15-1: Obligation to Participate in the Actual Operation of the Franchise Business ITEM 15: OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS. If you are an individual, you must directly supervise the franchised business on its premises. If you are a corporation, a person who owns at least a 1/3…
A company selling securities to residents of the state of Minnesota must comply with federal and state securities laws. State securities laws are collectively and individually referred to as “Blue Sky Laws.” These Blue Sky Laws vary among the states, sometimes to a significant degree. It is important to note that the Minnesota Legislature recently…