Following the financial crisis, the risk management policies of financial institutions are under greater scrutiny. Although banks have always had a duty to control risks - in part through loan evaluations - financial institutions must more effectively identify loans that are at high risk of default and take actions to avoid losses whenever possible.
Minnesota has traditionally been an employee-friendly state on the issue of non-compete agreements. Past court rulings cited the restraint on trade imposed by non-compete contracts when the court decided in favor of employees on these matters.
The time to develop an exit strategy is when you form your business partnership or corporation. The exit strategy is an agreement regarding business assets, debts and liability should a partner or another principal no longer be able to, or want to, engage in the business. You can avoid disputes and, ultimately, litigation by anticipating events that can put your business in jeopardy and including clear contractual language that addresses the situations.
New businesses frequently begin on a wave of exuberance and optimism. Riding this wave, entrepreneurs often have difficulty accepting the fact that the trust and goodwill they currently have with their business partners may not be permanent. As the business develops, interests may change and new stakeholders may alter the dynamics. Even if the composition of the business remains the same, people change and relationships may sour. This can create serious problems for minority shareholders in closely held corporations when other stakeholders join forces to exclude them from the operation of the business.
Jurisdictions across the United States added limited liability companies (LLCs) to their business and corporations codes in order to provide many of the benefits of incorporation - while giving entrepreneurs the flexibility to design entities that met the particular needs of their business models and ownership structure. To that end, most states give LLC organizers a modicum of freedom when it comes to defining the organizational structure of their proposed businesses.
Nearly three-fourths of all businesses in the United States start as sole proprietorships. The reasons are obvious: It is simple and uncomplicated. For many entrepreneurs and consultants, it initially makes sense because there is no cost.
Can you grow your business successfully through a merger or acquisition? Absolutely, and it often is a faster route to expanding market share and moving into new markets, improving distribution channels, accessing funds, diversifying and reducing your own costs and overhead through shared budgets.
In September of this year, the former New York landlord of the now-defunct law firm Dewey & LeBoeuf LLP, initiated a legal action against 450 of the firm's former partners. The landlord, 1301 Properties Owner, is suing for debts owed under their lease following the firm's collapse in May 2012. The former legal giant was headquartered on Manhattan's Avenue of the Americas with a lease set to run until 2020.
In September of this year, Forbes ranked Minnesota as the biggest gainer on its list of the Best States for Business. With its economic hub located in the Minneapolis-St. Paul area, the state jumped 12 places to take 8th position in the rankings for best business state. If you are considering building your own business in Minnesota, the U.S. Small Business Administration recommends the following steps to launching a successful venture:
If you are establishing a Minnesota enterprise in any field, the first step on your journey involves choosing the most appropriate business structure. There are several structures to consider, including: