As a board-certified civil trial specialist, I have been fortunate enough to have been entrusted with handling my fair share of cases to conclusion at trial (both court and jury) and arbitration. This is rare nowadays. The vast majority of cases (95% plus) settle short of trial. Trials are risky and expensive. We have seen some high-profile trials recently in…
One of the most common questions I get asked is whether non-competes are enforceable in Minnesota. The answer, like most things in the law, is that it depends on the circumstances. Often times, newly hired employees are required to execute non-competes (also referred to as restrictive covenants) as a condition of commencing employment. The employer is generally focused on protecting…
That all depends. The type of business, tax consequences, liability protections, and goals all impact what type of entity will provide your business with the ability to meet your goals. It is important to take the time to discuss what your business will be doing, how it will be doing it, and what the goals of your business are with…
When an employment/independent contractor relationship ends, there are certain considerations on next steps for both the company and individual. We talked earlier about non-competes and the implications of the same. Another issue that often arises is what to do with the information an employee/independent contractor gains from the company. This information can constitute a “trade secret” and is provided extra…
Earlier, we posted about what piercing the corporate/limited liability company (“LLC”) veil means. Today, we are providing tips to take to avoid veil piercing claims against your business. Piercing the corporate veil generally becomes an issue when the entity is being sued and the plaintiff is concerned that the corporation/LLC alone will be unable to satisfy the debt or otherwise…
If you own a business, undoubtedly you have heard the phrase “piercing the corporate veil” or you may have wondered whether you could personally be held liable for the debts or obligations of the business. Piercing the veil (which also applies to limited liability companies) is the method in which a person or business could seek to hold you personally…
Going through a divorce is difficult. Going through a divorce when you are a business owner adds another liar of emotional and financial stress to the equation. So what happens in Minnesota when a business owner goes through a divorce? Under Minnesota law, martial property must be equitably (not equally) divided. Entrepreneurs who face divorce have concerns about how their…
The reasons triggering a dispute between owners are never the same. Having handled several member and shareholder litigations, none of the disputes started the same way or involved the exact same circumstances. There are, however, some common themes that often times lead to a dispute between owners. Usurpation of corporate opportunities, owners standing on both sides of a transaction, and…
One of the hardest decisions a small business owner has to make is parting ways with the business they have dedicated blood, sweat, tears and treasure to build and/or grow. The difficulty of this decision is compounded if there is not an agreement with the other owners as to how to calculate a buy-out of the departing owner’s ownership interest…
Starting your own business and working for yourself can be one of the most rewarding professional experiences that you can have. Entrepreneurs know the undeniable feeling of glee in building something from scratch and bringing an idea in their head to fruition; whether that be offering services or products to their customers. Building a solid foundation early in this process…