Category Archives: BK Law Group

Independent Contractor vs. Employee

When workers perform services for a business, they may be classified as independent contractors (1099) or employees. It is critical that they be classified correctly. If the worker is an employee, generally the employer must withhold and deposit income taxes, Social Security taxes and Medicare taxes. In addition to these taxes, the employer must pay […]

What to do if You are Sued

What is a Lawsuit? A lawsuit is started against a person or company in Minnesota state courts by service of legal documents called a Summons and Complaint. The person or company bringing the lawsuit is known as the “Plaintiff.” The person being sued is known as the “Defendant.” The Complaint is a legal document in […]

What To Do if a Business Partner is Stealing From the Business

Stealing or commonly referred to as theft is not uncommon in business. Now that you have realized the wrong doing by your business partner(s) you must act quickly, so you will be more likely to recover damages, stolen property and/or money. 4 Common Types of Theft Physical and Intellectual Property Theft Physical theft is self-explanatory; […]

Emergency Repairs for Tenants

As a tenant, you will have reasonable requests in regard to maintaining your habitability of the property you are renting. Unfortunately, some landlords do not make the necessary or adequate repairs they are required to do so by law. Below is a “how to” on how to make sure your landlord makes the repairs you […]

Minnesota Security Deposit Laws and Procedures

Almost all leases and rental agreements in Minnesota require a security deposit prior to renting. This is a dollar amount, usually one month’s rent, that’s intended to cover damage to the premises beyond normal wear and tear, and to cushion the financial blow if a tenant skips out early on the lease without paying. Does […]

Startup Financing and Operation of the Business

A startup business, regardless of form, generally will find it difficult to obtain outside financing. The statistical failure rate for new businesses is high, and many lenders view financing the startup business venture as extremely risky. Banks and other creditors generally will require a significant capital investment by the business owner, and a personal guarantee that the owner will repay the loan. Corporations may issue securities to pool capital from a large number of investors; however, the costs of complying with complex federal and state securities laws may be prohibited, and there is no guarantee that a market will exist for the securities of a new firm. Likewise, limited liability companies may increase capital by admitting more members, but will need to offer prospective members some likelihood of return on their investment. Thus, as a practical matter, startup financing for the new venture — whether it is a sole proprietorship, a partnership, a corporation or a limited liability company — often is limited to what the owner and others closely associated with the venture are able to raise.