Guiding Small Businesses Toward Success
Last updated on February 18, 2025
As the owner of a small business in Minnesota, you’re sure to have your share of unique challenges. Unlike major corporations, small businesses face different obstacles that can feel much more overwhelming without internal legal resources.
That’s where we step in. Our Twin Cities attorneys at Gries Lenhardt Allen, P.L.L.P., are experienced in business law for both large and small companies and can fulfill the role of a legal business adviser when you need one. By working together, we ease the burden off your shoulders so you can focus on keeping your business running while we handle the complex legal challenges that may come your way.
When Do You Need A Small Business Lawyer?
Small business owners are often very self-sufficient, but that doesn’t mean they don’t need help. Any number of legal issues can pose a threat to all your hard work in building your company. Instead of trying to handle them alone, turn to an experienced attorney who understands how to tackle these issues.
Our team will work closely with you to learn your company’s goals and values so we can address your needs accordingly. When you need legal guidance, we can provide the answers that will help you make informed decisions.
Our small business lawyers have experience in areas such as:
- Changing business structures
- Protecting intellectual property
- Protecting your business in legal disputes and litigation
- Navigating commercial leases and real estate transactions
- Defending against former or current employee lawsuits
- Defending against local, state or federal government complaints or investigations
- Negotiating business sales or acquisitions
- Drafting contracts and other legal documents
- Addressing contract breaches
- Preparing partnership agreements
- Crafting a business succession plan
No matter what legal obstacle your business may face, we are ready to help you overcome them with confidence.
Frequently Asked Questions About Small Business Representation In Minnesota
We have compiled some frequently asked questions to help Minnesota small business owners like you navigate complex legal issues effectively.
Do I have to hire a lawyer to start a business?
While it’s not legally required to hire a lawyer to start a business in Minnesota, it’s highly recommended. The process of forming a business involves many complex legal considerations, from choosing the right structure to drafting contracts and obtaining necessary permits. Without proper guidance, you may inadvertently create a business structure that exposes you to personal liability or fails to take advantage of tax benefits.
For example, if you’re starting a business with multiple owners, you’ll want to ensure that your partnership agreement or operating agreement is comprehensive and protects your interests. By working with an experienced business attorney from the beginning, you can avoid costly mistakes and ensure that your business is set up for success.
What are the advantages and disadvantages of each type of business structure?
Choosing the right business structure is a critical decision that can have significant implications for your business’s liability, taxation, and management. Below is a brief overview of some of the most common business structures utilized in Minnesota:
- Sole Proprietorship: Simple to set up and maintain, with full control over the business. However, the owner is personally liable for all business debts, which can put their personal assets at risk.
- Partnership: Shared responsibility and pass-through taxation can be beneficial, but partners are personally liable and may face conflicts.
- Limited Liability Company (LLC): Offers limited liability protection, flexible management, and pass-through taxation, but requires more complex paperwork and fees.
- C Corporation: Provides strong liability protection and is easier to raise capital, but is subject to double taxation and more regulations.
- S Corporation: Offers limited liability and pass-through taxation, but has more restrictions than LLCs and may face IRS scrutiny.
To help you choose the right structure for your business, you may want to consider the following factors:
| Structure | Liability Protection | Taxation | Management |
|---|---|---|---|
| Sole Proprietorship | None | Pass-through | Single owner |
| Partnership (including LLPs and PLLPs) | None (general partners), Limited (LLPs and PLLPs) | Pass-through | Shared |
| Limited Liability Company (LLC) | Limited | Pass-through | Flexible |
| C Corporation | Limited | Double | Board of directors |
| S Corporation | Limited | Pass-through | Restricted |
*Note: Partnerships can take the form of general partnerships, limited liability partnerships (LLPs), or professional limited liability partnerships (PLLPs). While general partners in a partnership have unlimited personal liability, LLPs and PLLPs offer limited liability protection for their partners.
What is the difference between a merger and an acquisition?
When two companies combine, it’s either a merger or an acquisition. A merger occurs when two companies join to form a new entity, often to increase efficiency and reduce costs. For example, two small businesses in the same industry might merge to create a more competitive entity.
An acquisition, on the other hand, occurs when one company purchases another, and the acquired business ceases to exist as an independent entity. Acquisitions can be friendly, where both parties agree, or hostile, where the acquired company resists the takeover. Both mergers and acquisitions require careful legal planning to ensure compliance with Minnesota business laws and tax regulations.
I have owned my business for years. What can an attorney do for me that I do not already know?
Since laws and regulations change, an attorney’s guidance can assist with:
- Contract reviews and negotiations to prevent costly disputes
- Regulatory compliance to help ensure you meet all state and federal requirements
- Employment law issues like employee contracts, wage laws and workplace policies
- Business succession planning to help ensure a smooth transition when you decide to retire or sell your business
- Litigation prevention and dispute resolution to address conflicts before they escalate into lawsuits
No matter how long you have been in business, legal challenges can arise at any time. By working with an experienced business attorney, you can gain peace of mind, protect your business from potential risks, and focus on what you do best – running and growing your business.
We Can Help You Protect Your Business
Legal challenges can be especially troublesome for small businesses. Our small business attorneys are here to ensure you’re not drowning under legal challenges when you should be focusing on keeping your business up and running.
Contact our firm today at 612-568-0023 to schedule an appointment. You may also complete our online contact form to send us information about your legal needs; however, the submission of the online contact form does not create an attorney-client relationship.