08 September

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Plan Before a Crisis

It is easy for a person to be lulled into a false sense of security that they can delay planning for one’s inevitable death and, most likely, incapacity or incompetency. As a business owner, the stakes are often higher. Generally, there are employees and their families that are relying on the continuation of the business. Without pre-planning, when a crisis occurs it could be too late to ensure the least risk to your business and your financial welfare. For example, Cut Your Losses, LLC is owned by two partners who are married to each other. They have not prioritized having their...

25 August

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The Mistake of a Business Owner in Not Retaining a Business Lawyer

Posted by Evon Spangler

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Hypothetical: Betty and her sister Amy are equal owners of Betty’s Things, Inc. They have been in business for 10 years, and their business is going well despite the fact that Amy’s husband does not like Betty. Amy’s husband does not like Betty because he believes that his wife was entitled to more money from the business than Amy has received. Amy unexpectedly dies in a car accident. Betty contacts an attorney because Amy’s husband called her demanding that the business is dissolved and that Amy’s estate receives two-thirds of the business assets. To add insult, Betty’s Things, Inc. is...

11 August

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Be Aware of the Impact of Local Ordinances on Remote Workers

Posted by Evon Spangler

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The pandemic has resulted in several businesses allowing their workers to work remotely. In doing so, it is important for a business to review local ordinances to determine whether or not your business is in compliance. For example, sick and safe time laws that have been passed at a local level could require your business to provide sick and safe time to a remote worker in a particular city. Currently, Minnesota’s largest cities – St. Paul, Minneapolis and Duluth – all have passed sick and safe time ordinances. All three of the city’s ordinances are different. It is extremely important (and...

28 July

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Common Business Formation Issues

Posted by Evon Spangler

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Business formation issues remain common as people often believe that formalizing a business is simply filing the proper forms with the Minnesota Secretary of State. However, by simply filing the proper forms with the Minnesota Secretary of State, the business has only achieved being in good standing with the Minnesota Secretary of State and that does not form the corporate veil that is essential to prevent your personal assets from being seized to pay for a business judgment. In addition, it may result in the business and/or the business owners having to pay more taxes or other financial consequences than...

14 July

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The Mistake of a Business Owner Regarding Failing to Plan for Incapacity, Incompetency and Death

Posted by Evon Spangler

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It is not uncommon for a business owner to forget or avoid planning for incapacity, incompetency and death. While trying to juggle several balls in the air at once and having to wear multiple hats every day it is easy to avoid planning for incapacity, incompetency and death as a business owner. Unfortunately, by doing so, it is extremely likely that your business will fail if you become incapacitated, incompetent or dead. Hypothetical: Sally owns Sally’s Best Brownies, Inc. She is the sole owner of the business and has been for 25 years. She has five employees, including her daughter, Sabrina....

23 June

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Storage of Estate Planning Documents

Posted by Evon Spangler

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It is essential that you know where your original estate planning documents are kept and that those individuals that you have named to act as your successor Trustee, Personal Representative, Health Care Agent and Power of Attorney know where the original documents are stored. Here are some tips regarding storage of your estate planning documents: For original documents, file your original will and any original subsequent codicils at Probate Court in the county in which you reside. If probate needs to be started for your estate and the original will cannot be located, your estate will have no choice but to...

02 June

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The Legal Owner of Real Property Matters

Posted by Evon Spangler

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Hypothetical 1: Perez and Rosie are married to each other and do not have any children. They purchase a home together and the deed is in both of their names. Perez passes away. Rosie goes to sell their home and finds out that they owned the property as tenants-in-common, rather than as joint tenants. As a result, Rosie must start probate to have Perez’s one-half share of the property either distributed to her by the probate court so she can sell the home or she needs to sell the home with the estate as one-half owner being one of the seller’s...

19 May

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Immunity as a Volunteer

Posted by Evon Spangler

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Volunteering your time at a nonprofit organization to help others in need is commendable. Paying it forward in life by volunteering your time, skills, and talent is a value that is close to our hearts. This article’s purpose is to remind you that your good intentions as a volunteer does not protect you if your actions as a volunteer exceeds the scope of services of the nonprofit’s organization. In a recent Minnesota Court of Appeals decision, the Court held that the volunteer did not have immunity under Minnesota’s Nonprofit Corporation Act when the volunteer allowed his mentee to stay for an...

05 May

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Planning for Medical Assistance

Posted by Evon Spangler

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Elder law is protecting assets from medical assistance liens, lawfully transferring assets, and asset reduction strategies. The majority of people who do not have long-term care insurance will most likely end up having to use Medical Assistance when they reach their later years to pay for nursing home care. In order to qualify to receive Medical Assistance, as a general rule, your assets must not exceed more than $3,000 (there are several exceptions). As a result, it is common for people to have to spend down their assets to pay privately for nursing home care until they have reached the...

21 April

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The Mistake of a Business Owner Regarding Failing to Plan

Posted by Evon Spangler

in Uncategorized

Hypothetical #1: Joe’s Sporting Goods, Inc. is owned by Joe, and it rents commercial space. However, Joe decides it would be beneficial to own a commercial building as he just received his new lease terms and the monthly rent is higher than what Joe would pay for a mortgage on his own building. In addition, he could start a separate real estate holding company LLC that the corporation could rent the space from, which would be a significant tax benefit. Joe’s plan is to buy a building in two months’ time when his current lease expires. Joe makes an appointment with...

Blog

Plan Before a Crisis

The Mistake of a Business Owner in Not Retaining a Business Lawyer

Be Aware of the Impact of Local Ordinances on Remote Workers

Common Business Formation Issues

The Mistake of a Business Owner Regarding Failing to Plan for Incapacity, Incompetency and Death

Storage of Estate Planning Documents

The Legal Owner of Real Property Matters

Immunity as a Volunteer

Planning for Medical Assistance

The Mistake of a Business Owner Regarding Failing to Plan

The Death of a Business Owner: The Importance of Buy-Sell Agreements

Sick/Safe Time Ordinances in Saint Paul and Minneapolis

Updating Contracts

Cyber Policies

The Personal Guarantee of a Business Owner