For owners of Minnesota LLCs that were formed prior to August 1, 2015 and have not yet checked in regarding whether law changes could impact their LLC beginning January 1st – stop procrastinating! Beginning January 1, 2018, some owners of Minnesota LLCs could wake up feeling a little rough around the edges due to more than how they spent their New Year’s Eve.
We Minnesotans like to be different. Just look at our football stadium, our beer, or our music scene. When Minnesota first created a limited liability company act, it did so in a unique way – most other states modeled LLCs after partnerships, but Minnesota mirrored laws governing corporations. In 2014, Minnesota decided to revise the limited liability company act, making it much closer to the majority rule. But as you may expect, the Revised Limited Liability Company Act retained characteristics unique to Minnesota. Read More
When operating a business, minimizing risks is nearly as important as maximizing profits. Creating a legal entity such as a limited liability company or corporation is one simple step to minimize risks. We have written about the corporate shield and the limits to its protection. Even if you maintain the corporate shield, there are circumstances where your business’s creditors may be able to avoid the shield. Read More
Minnesota’s Human Rights Act (Minnesota Statutes 363A) duplicates and often expands rights protected under federal laws. One provision that has garnered attention recently is 363A.11 – public accommodations. This provision parallels federal protections found in the Americans with Disabilities Act, specifically addressing architectural barriers that prevent persons with disabilities equal access to public accommodations.
Under the ADA, a person excluded from a business due to an architectural barrier can bring a lawsuit seeking an injunction – an order that the business remove the barrier. While the plaintiff could recover attorneys’ fees, damages are not available under the federal ADA. Under the Minnesota Human Rights Act, though, a plaintiff may recover damages.
Although these laws have been in place for more than a quarter century, they’ve come under scrutiny recently because a group used the state law as means to leverage monetary settlements from businesses without actually requiring the businesses they sued (or threatened to sue) to remove the architectural barriers. This had the unique effect of uniting business groups and disability advocates. Read More
Forming a legal entity such as a limited liability company or a corporation is a simple first step in limiting some of the risks inherent in running your business. We have written about the corporate shield and its limits. The corporate shield only provides any protection so long as you maintain the shield. If you fail to do so, your business creditors may be able to “pierce the corporate veil.” Read More
Owning and operating a business is full of risks, and one important job of a business owner is to limit those risks. Some small businesses are sole proprietorships or are individuals operating under an assumed name. Doing so may provide your business some branding benefits, but it does not protect you. Under these circumstances, the company’s debts and liabilities are your debts and liabilities. If a creditor brings a lawsuit against your business, the lawsuit is against you personally and all your personal assets are potentially in jeopardy.
It is very simple to limit this risk. Read More