Small Business Blog

Pros & Cons of an Asset Purchase v. Stock Purchase

With an asset purchase, the buyer is buying only selected parts of business entity. With a stock purchase, the buyer is buying the business entity itself with all of the entity’s assets and liabilities.

Which is the better purchase method depends on the situation.  » Read more..

What is “Indemnification”?

Although indemnification language is common in contracts governing most business transactions, it should not be dismissed as mere generic boilerplate language.

Indemnification is the promise by one party to cover a future loss of another party under certain circumstances. » Read more..

Pros & Cons of Letters of Intent

Caution is strongly advised before signing a Letter of Intent that outlines the basic terms of a proposed deal between a buyer and seller of business assets or a business entity.

Letters of Intent are not required, and there are pros and cons to signing one. » Read more..

Informality of Minnesota’s New LLCs: Blessing or Curse?

The informality of Minnesota’s new limited liability (LLC) law, which takes effect for new LLCs on Aug. 1, 2015, may be both a blessing and a curse.

What is meant by “informality”? New Chapter 322C of Minnesota’s statutes permits unwritten agreements between the owners. » Read more..

Minnesota’s New LLC Law Starts in 2015

Minnesota lawmakers have written a whole new chapter in Minnesota law for limited liability companies (LLCs), and those changes may impact your current LLC.

Since 1992, Minnesota LLCs have resembled a corporation in that the LLC board of governors, managers and members were similar, respectively, to a corporation’s board of directors, officers and shareholders. However, starting with LLCs created on or after Aug. 1, 2015, they’ll resemble a partnership model.   » Read more..

Legal Considerations in Starting a Business

In the euphoria of starting a business, it’s best to focus on what you know best and let the lawyers help with what they know best — the legal considerations in starting a business.

New businesses are best started by optimists who are naturally focused on the positive. Hire lawyers to worry about, and focus on, the “what ifs” should changes be needed or things go wrong. Your lawyer should seek to draft escape hatches into your documents and contracts to soften the blow should adversity strike or if you later decide to make significant changes to your business model.

Here are some examples where legal counsel could be particularly helpful: » Read more..

Advantages & Pitfalls for Boomers Starting a Business

Corporate America may discriminate against employees over age 50, but the savvy and experience of graying Baby Boomers are often considered advantages when a Baby Boomer opens his or her own business.

Boomers are generally defined as persons born between 1945 and 1964, which means that the youngest Boomers are turning 50 in 2014.  » Read more..

Should Baby Boomers Start Their Own Business?

In deciding whether to start a business once you’re age 50 or older, it’s important to consider the “why” of doing so.

Are you doing so because you’ve always dreamed of running your own business? Or, is it because you need the income?

There are lots of advantages to starting your own business, but creating and growing a business takes lots of work. The workload may seem lighter if you’re living your dream rather than feeling forced to do something in search of income. Of course, needing money for groceries can be a powerful motivator – you just may not have as much fun building your business. » Read more..

Business Mantra: Cash is King

Cash is king. Perhaps nothing is more important to the success of a business than having enough cash coming in to pay the bills.

A new business may lose money its first year. Therefore, persons starting businesses need to consider whether their initial cash investment will be higher than what’s needed as outlays for technology, marketing, supplies and rent. And that’s not even counting the fact that the new business owner will need an outside source of cash to pay his or her personal living expenses until the new business becomes profitable. » Read more..

Key Steps to a Successful Business Start-Up

There are many factors that impact whether your business start-up will be successful or not.

Here are some of the key factors:

Don’t Be Penny-Wise & Pound Foolish. Recognize that you don’t know everything and can’t do everything. Hire a lawyer to handle the myriad legal matters of starting a business, and an accountant to advise you on bookkeeping and tax-related matters. If you don’t know web design, hire someone who does. » Read more..