Minnesota Bankruptcy: Filing Bankruptcy May Help You – And You’re Not Alone

Minnesota Bankruptcy: Filing Bankruptcy May Help You – And You’re Not Alone

Ordinary people file for bankruptcy. Let’s face it, the economy is not currently strong and it has been a severe lows in the recent past. This has caused many, many people to find themselves swamped in debts that will consume them before they are ever able to repay all the debt. This is the purpose…

Minneapolis Bankrupcy: Who Should File Bankruptcy and What Debts Will Go Away?

Minneapolis Bankrupcy: Who Should File Bankruptcy and What Debts Will Go Away?

No one hopes to file bankruptcy. No one enjoys it. Filing for bankruptcy is a very personal decision. But filing for bankruptcy is not the end of the world. Bankruptcy laws are intended to help people, not harm them. There are, of course, consequences to filing bankruptcy, but there are also many benefits. If the…

Your Legal Duties Serving on a Nonprofit Board of Directors

Your Legal Duties Serving on a Nonprofit Board of Directors

This article explains the legal responsibilities of those serving on the board of directors of a Minnesota nonprofit organization. Introduction It is an honor to be asked to serve on a board of directors for a Minnesota nonprofit organization. Unfortunately, many people accept appointment or election to a board of directors without realizing what is…

Minnesota Business Lawyer: Self-Dealing Officers and Directors

Minnesota Business Lawyer: Self-Dealing Officers and Directors

Officers and Directors of closely-held corporations are held to a higher standard than many other people. Shareholders in a closely-held corporation are held to a higher standard sometimes also. Shareholders in a publicly-traded corporation are not held to the same standard as those in closely-held corporations. Fiduciary Duties Officers and Directors owe duties that we…

What Are the Basic Elements of a Contract?

What Are the Basic Elements of a Contract?

All contracts contain three basic elements: offer, acceptance, and consideration. Consideration is what each side gives up in exchange for the benefit that he or she is receiving. Sometimes this is money, doing something for someone, or refraining from doing something. Forming a Contract May Take Time and Negotiation Offers may be accepted or rejected….

Explanation of Fiduciary Relationionships in Businesses

Explanation of Fiduciary Relationionships in Businesses

Fiduciary duties are legal obligations owed by fiduciaries. A person is a fiduciary if the law imposes on that person a duty of good faith, trust, confidence, candor, loyalty, or care upon the person for the benefit of another person. A fiduciary only owes those duties to the other person within the fiduciary relationship. Examples…

Fiduciary Obligations of Shareholders and Owners | MN Business Attorney

Fiduciary Obligations of Shareholders and Owners | MN Business Attorney

Owners of closely-held corporations are obligated to act in certain ways with respect to the other owners. These obligations are often called “fiduciary duties.” Owners may be sued and liable for damages if they do not abide by these obligations. Closely-Held Business Owners Must Act with Integrity and Honesty toward Other Owners Minnesota closely-held businesses…

Common Questions After Forming a Minnesota LLC

Common Questions After Forming a Minnesota LLC

Many questions arise before you form your LLC. Additional questions will arise after you form your LLC. Those questions will include: Where do I keep my business’s money? What other licenses do I need? Do I have to file anything else with the Minnesota Secretary of State? What if I don’t want the business anymore?…

Minnesota Business Lawyer: Forming an LLC – Who, Where, and What?

Minnesota Business Lawyer: Forming an LLC – Who, Where, and What?

Frequently, many of the same basic questions arise when forming one’s own business in Minnesota. Answers to the three most common questions are below. Location of the Business – Can I Use My Home Office? Yes, you can use your home address for your business address. Must Your Business Have a Physical Address? Yes. If…

You've Been Wronged, but Were You also Wrong? Analysis of Dual Faults

You've Been Wronged, but Were You also Wrong? Analysis of Dual Faults

Negligence is acting, or failing to act, in the manner a reasonable person would under similar circumstances. Someone who acts negligently is liable for damages if someone is harmed by the negligent act, or failure to act. What if the person harmed also did something wrong? There are different types of dual, or joint faults…

Fiduciary Duties Officers and Directors Owe a Minnesota Corporation

Fiduciary Duties Officers and Directors Owe a Minnesota Corporation

In addition to the fiduciary duties owed by shareholders, fiduciary duties arise by holding a position of director or officer. A director is required, by statute in Minnesota, to discharge the duties of the position of director in good faith, in a manner the director reasonably believes to be in the best interests of the…

Minnesota Contracts: How to Create a Contract in Minnesota

Minnesota Contracts: How to Create a Contract in Minnesota

In this video, you get answers to these questions: How do you create a contract in Minnesota? Can you have an oral contract or does it have to be in writing? What provisions have to be in the contract? What three elements are involved in a contract? Contracts are agreements that are formed between or…

Minnesota Contracts: How to Negotiate a Minnesota Contract

Minnesota Contracts: How to Negotiate a Minnesota Contract

All Minnesota contracts contain three basic concepts: offer, acceptance, and consideration. Offer and acceptance mean exactly what you think they mean. Consideration is what each side gives up in exchange for the benefit that he or she is receiving. Sometimes this is payment of money, sometimes it is doing something the person is not obligated…

Fiduciary Duties Breach by Shareholders, Officers, Directors, or Partners

Fiduciary Duties Breach by Shareholders, Officers, Directors, or Partners

A fiduciary is a person required to act for the benefit of another within the scope of their relationship. A fiduciary owes a certain standard of loyalty or care toward another. What are the Consequences of a Fiduciary Breaching a Duty to Another? A fiduciary that breaches his or her fiduciary duty is liable for…

Minnesota Shareholder Dispute: What Are My Rights & Options?

Minnesota Shareholder Dispute: What Are My Rights & Options?

Owners in a closely-held corporation owe duties to each other. An owner, or shareholder is subject to legal liability if he or she violates a duty owed to another owner, or shareholder. The duties owed can be complex. Fiduciary Duties Owed by Business Owners in Minnesota In Minnesota, the shareholders in a closely-held corporation owe…

Minnesota LLC Attorney: EIN, Business License, and LLC Renewal

Minnesota LLC Attorney: EIN, Business License, and LLC Renewal

  Once you are past the basics of forming an LLC you need to ponder other practical considerations. Your business needs a bank account. You may need additional licensing for your business. You will need to renew your business on occasion, or at some point, you may wish to let it lapse. Business Bank Account…

Minnesota Business Formation: Common Questions

Minnesota Business Formation: Common Questions

Frequently, many of the same basic questions arise when forming one’s own business in Minnesota. Answers to the three most common questions are below. Location of the Business – Can I Use My Home Office? Must your business have a physical address? Yes. However, you can use the address of your business’ virtual office. Virtual…

501(c)(3) Church Eligibility: Religion vs. Philosophical View

501(c)(3) Church Eligibility: Religion vs. Philosophical View

Recently, I wrote about the test for determining whether a religious organization qualifies as a church, and thus, a tax exempt organization, even though the organization does not obtain 501(c)(3) status by completing Form 1023. Another important issue for churches seeking tax-exempt status as a 501(c)(3) is whether their belief system will qualify as a…

Must Churches File Form 1023 for 501(c)(3) Tax Exemption?

Must Churches File Form 1023 for 501(c)(3) Tax Exemption?

Churches may wonder whether they must file IRS Form 1023 to be considered a tax-exempt religious organization under 501(c)(3). The IRS Instructions to Form 1023 provide the following: Form 1023 not necessary. The following types of organizations may be considered tax exempt under section 501(c)(3) even if they do not file Form 1023. Churches, including…

Minnesota Foreclosure Deficiency Judgment

Minnesota Foreclosure Deficiency Judgment

Homeowners who are facing a foreclosure of their home are understandably concerned about the impact this will have on them and whether they will owe money to the mortgage company (hereafter “bank”) after the foreclosure. This is part four of a series on Minnesota foreclosures, explaining deficiency judgments that result from a foreclosure in Minnesota….

Minnesota Foreclosures: Foreclosure by Advertisement

Minnesota Foreclosures: Foreclosure by Advertisement

Many Minnesota homeowners are facing foreclosure during these difficult economic times. Minnesota homeowners may wonder about the foreclosure process in Minnesota and the legal consequences of a foreclosure. This is part two of a series on Minnesota foreclosures, and covers the basics of foreclosure by advertisement. Before reading this section, you might want to read…

Minnesota Foreclosures: Foreclosure by Action

Minnesota Foreclosures: Foreclosure by Action

If the bank is foreclosing on your home, you may be wondering about the process and the legal consequences of a Minnesota foreclosure. This is part three of a series on Minnesota foreclosures, explaining foreclosure by action. For an overview of Foreclosure by Advertisement and Foreclosure by Action, read the first part on Minnesota Foreclosures….

Minnesota Foreclosures 101: Foreclosure Basics

Minnesota Foreclosures 101: Foreclosure Basics

This article discusses the basics of Minnesota foreclosures. This is part one of a series on Minnesota foreclosures: Minnesota Foreclosure Law: Foreclosure Basics Minnesota Foreclosure Law: Foreclosure by Advertisement Minnesota Foreclosure Law: Foreclosure by Action Minnesota Foreclosure Law: Deficiency Judgments Minnesota Foreclosure Law: Foreclosure of a 2nd Mortgage Let’s start by explaining what a foreclosure…

Minnesota Litigation Attorney: Should I File a Lawsuit?

Minnesota Litigation Attorney: Should I File a Lawsuit?

Whether to start a lawsuit is a difficult decision. As a Minnesota litigation attorney, I offer these tips to people considering suing someone. If you are considering a lawsuit (litigation), the cost and other options to resolve disputes may be worth examining. In general, there are several factors that you should consider before deciding to…

If I Win a Lawsuit, How do I Collect the Money?

If I Win a Lawsuit, How do I Collect the Money?

Minnesota Debt Collections & Minnesota Judgment Collections After you win, the court’s judgment is valid for 10 years unless you renew it. Unfortunately, even though you won your case, you probably won’t immediately get your money from the defendant. In fact, you may never get it. A court order may say that the defendant owes…

Are My Injuries Serious Enough to Sue? | Minnesota Personal Injury Attorney

Are My Injuries Serious Enough to Sue? | Minnesota Personal Injury Attorney

If you are wondering whether your injuries are serious enough to sue, they probably are not. For example, a cut, bruise, or minor flesh wound that heals after a few days is in the category of very minor injuries. At the other extreme are serious injuries such as permanent disability, permanent disfigurement, and injuries that…

Noncompete Agreement FAQ for Minnesota Employees & Employers

Noncompete Agreement FAQ for Minnesota Employees & Employers

As a Minnesota business attorney, I am often asked questions related to Minnesota noncompete agreements. Below I explain an overview of Minnesota noncompete law and answer common questions. Overview If you are an employee, employer, or independent contractor in Minnesota, 2023 brought a huge change in the law affecting you. The Minnesota Legislature passed a bill…

Limiting Fiduciary Duties in Minnesota Small Businesses

Limiting Fiduciary Duties in Minnesota Small Businesses

Minnesota business owners in a partnership may desire to limit the fiduciary duties they owe each other. They may ask their lawyer to draft a partnership agreement providing limitations on their duty to disclose to each other. They may also ask their lawyer to include a provision allowing the partners to compete with the partnership….