Minnesota Corporation or LLC Formation

All business owners should consider protecting their personal assets by forming a limited liability company or corporation with the State of Minnesota.

An LLC or a corporation are separate entities from you.  Because the LLC or corporation is not you, any debt or liabilities of the company are not your debt or your liability if the LLC or corporation is formed and managed correctly, and if you do not sign a personal guarantee or assume the debt of your company.

“LLC” stands for Limited Liability Company. Because it is not a partnership or a corporation, the owners of an LLC are not partners or shareholders; they are “members”.  Such companies are frequently and incorrectly labeled “Limited Liability Corporations”, but “corporation” is inaccurate and “company” is the proper term.

Minnesota has recently extensively revised its LLC laws.  It is now easier than ever to form a limited liability company in Minnesota. Knowledgeable Minnesota LLC attorneys can take advantage of the new laws to protect the company from the personal creditors of its members (owners), as well as protect the members from the creditors of the limited liability company.

In addition, if elected, the income taxes of the limited liability company can pass through so the owners are not double taxed, similar to a partnership or S-corporation.

Attorney, Brian Aho, can form an LLC or corporation in one day. He also can inexpensively and efficiently draft an operating agreement to protect the company assets and the assets of the members.

To learn more about the differences between an LLC and a corporation, or for assistance in forming the company, contact our office at (612) 271-4047 or brian@aholawoffice.com.

Minnesota Business Purchasing 

Before purchasing a business, you should consult with a knowledgeable Minnesota business attorney and an accountant.  Attorney, Brian Aho, works with business owners to conduct proper legal due diligence on the prospective business for the proper entity, whether a corporation or LLC, drafts bylaws or an operating agreement to protect the owner’s personal assets from company or personal creditors, drafts confidentiality agreements, and negotiates and drafts purchase agreements.  To protect your business,  you should have properly worded non-disclosure agreements so the seller does not disclose confidential information to your competitors, confidentiality agreements so the seller does not take or disclose to your competitors the goodwill, intellectual property, and secrets that you paid for, and non-compete agreements so the seller does not take your customers or employees.

There are many advantages to purchasing an existing business. Investors are more likely to finance an acquisition than a start-up business because there is significantly less risk. You will already have suppliers, trained employees, and an established customer base. You will not have to worry about proving the value and credibility of the business because this will have already been established. In many cases, the seller will remain with the business to train the buyer and assist with the transition. However, there are many risks involved in business, which is why it is so important to work closely with a Minnesota business attorney. You can minimize the risks by buying an established business and utilizing an experienced business attorney.

For a free initial consultation, contact Aho Law Office, P.A. at (612) 271-4047 or brian@aholawoffice.com.

Minnesota Business Sales

Before selling a business, you should consult with a knowledgeable Minnesota business attorney to negotiate and draft the purchase agreement and to prepare all of the appropriate legal documents, such as nondisclosure agreements, confidentiality agreements, and the final sale agreement.

Just like any other important business step, selling your business requires careful preparation. A well-organized business with all its legal and financial records in order will be more attractive to a purchaser. Attorney, Brian Aho, can help you prepare your business records for sale, and ensure that the final deal is fair and favorable to you.  He can assist you in the sale of your business by negotiating the terms of the sale, helping you understand your options, and prepare the closing documents.

For a free initial consultation, contact Aho Law Office, P.A. at (612) 271-4047 or brian@aholawoffice.com.