651-776-2900

Schedule a free one-half hour consultation

Uncategorized

Business Owner Recap

As a business owner, it is important that you are staying updated on the new laws and regulations. Here is a recap of what we consider some of the most recent changes to the law that affects businesses: Beneficial Ownership Registration: If you are a business owner and have not reported (most businesses must report) the beneficial ownership to the federal government, make sure you do it now (or by January 1, 2025). If you started your business in 2024, you have 90 days from the date of registration with the Secretary of State office (or a similar office under the...

Continue reading

The Mistake of a Business Owner Regarding Insurance

It is essential that you have the proper insurance coverage in place that will cover you in the event that something bad happens. Not only do you need the proper coverage in place, but you also need the coverage to have policy limits that meet the financial realities of the business, but also includes the proper endorsements. The amount of the insurance premium is based on several factors, including but not limited to the amount of coverage, the type of coverage (how expansive the coverage is) and the type of endorsements. In other words, the least expensive premium may provide...

Continue reading

Setting Goals for Your Estate Planning

Determining what estate plan is best for you generally starts with you determining what your goals are for your estate plan. Some examples of common goals are: avoid estate taxes, make certain a disabled/special needs child is taken care of and that child’s inheritance does not go to the government, avoiding creditors, or creating a legacy through charitable giving. Of course, the goals are personal to each client. But, the goals of the client are the starting point in determining what estate plan best suits you. Consider the following hypothetical goal and the different options. Hypothetical Goal #1: Your goal is for...

Continue reading

Landlord/Tenant New Laws Recap

The Minnesota legislature in 2023 passed the most comprehensive landlord/tenant laws in our state’s history. Most of the new laws are in effect or go into effect this year from the 2023 legislative session. Since the Minnesota legislature is once again in session, most likely, there will be additional new laws that will be passed in 2024 that will impact landlords. The new laws that went into effect January 1, 2024 include, but are not limited to the following: Heat in rental units must be at a minimum of 68 degrees from October 1st through April 30th. This law only applies...

Continue reading

Federal Reporting Required for Businesses

As of January 1, 2024, most business entities must report their beneficial ownership information to the federal government. Beneficial owners are those individuals who ultimately own or control the business entity. For businesses that were in existence prior to January 1, 2024, you have until January 1, 2025 to report beneficial ownership information for each business entity. Those businesses that were formed in 2024, the business entity has 90 days from the date of registration with the Secretary of State office (or a similar office under the law of the State or tribal nation) to report beneficial ownership information. Commencing January...

Continue reading

Buy-Sell Agreements

Hypothetical: Veronica and her sister Annie are equal owners of Veronica’s Things, LLC. They have been in business for 15 years, and their business is going well despite the fact that Annie’s husband does not like Veronica. Annie’s husband does not like Veronica because he believes that his wife was entitled to more money from the business than Annie has received. Annie unexpectedly dies in a car accident. Veronica contacts an attorney because Annie’s husband called her demanding he gets two-third of the income from the business and that he is the new President. In meeting with the attorney, Veronica is...

Continue reading

The Mistake of a Business Owner Regarding Piercing the Corporate Veil

Hypothetical:  Mary works in human resources, but on weekends, she makes fantastic floral arrangements for her friends’ weddings. When Mary unexpectedly gets laid off, she turns her hobby into a business. She sets up the business herself. She files Articles of Incorporation for Mary’s Wedding Flowers, Inc. with the Minnesota Secretary of State.  On the day Mary opens up her flower shop, she immediately is swamped with business. Mary feels good because now she is incorporated and her business is flourishing. She deposits the money that she receives into her personal checking account, and everything is great. Then Mary gets...

Continue reading

Misclassification of a Worker

The misclassification of a worker as an independent contractor instead of as an employee has both civil and criminal consequences in Minnesota as it is considered a form of wage theft. As mandates increase for employers regarding laws that impact their bottom line, it is tempting to start misclassifying workers as independent contractors. Resist the temptation. Not only is it unlawful, but the consequences could potentially destroy your entire business (and your personal life). There are several myths regarding the classification of workers as independent contractors rather than employees. The following statements are myths: An employer determines if a worker is...

Continue reading

The Sunset of the Federal Estate and Gift Tax Exemption

Note: Spangler and de Stefano, PLLP does not provide tax advice. This article is for informational purposes only. Please consult with your tax advisor or tax attorney regarding advice for your specific circumstances. Minnesota currently does not have a gift tax. However, estate tax in Minnesota is assessed on those estates that currently have more than $3,000,000 in assets. Please note that an estate means one individual. However, the federal government has both a gift tax and an estate tax. But, the gift and estate tax amounts at the federal level are combined. As a result, at the federal level, the...

Continue reading

January 1, 2024 ESST Deadline

As of January 1, 2024, Minnesota employers must provide to its employees sick and safe time (ESST). However, prior to January 1, 2024, employers must provide notice to employees about ESST. In addition, the employer must provide notice to new employees at the start of employment. The notice must be provided in English unless the employee’s primary language is not English. In that case, the notice must be provided in the employee’s primary language that is not English. The Minnesota Department of Labor and Industry has sample notice forms, including in several most common language spoken in Minnesota in addition to...

Continue reading