Many small business owners try to save money wherever they can, and not hiring a lawyer is one cost-cutting measure that often backfires in the long run. Having a small business lawyer can mean the difference between a sound, stable enterprise and one that goes under due to a single legal dispute. Small business lawyers can help safeguard your interests in the following areas:

• Setting up your business. An attorney can help with many decisions in setting up a business, including legal aspects of creating a business plan, choosing a business name, choosing a website domain, deciding between becoming a corporation or LLC and negotiating a lease agreement.

• Protecting assets. Advising business owners on how to avoid liability is another facet of small business law. An experienced attorney can suggest the appropriate asset protection strategies, which may include separating business and personal assets, using a limited liability company and placing assets in multiple entities.

• Hiring and firing employees. Business owners need a good working knowledge of employment law to ensure that the hiring and firing process, compensation and general treatment of employees, is fair and in compliance with local, state and federal laws. An attorney can help navigate the legal process, as well as advise an employer on instituting non-competition or confidentiality agreements with employees.

• Creating and assessing contracts. Drafting business contracts that protect the rights of all parties involved is a daunting task that is best handled by an attorney with knowledge of complex business laws. Reviewing a contract presented by a business partner or client, as well as handling a contract dispute, is another matter best handled by a seasoned small business attorney.

• Business litigation. If a company is accused of wrongdoing against an employee, client or other party, a business litigation attorney can help negotiate a settlement to avoid a lengthy and expensive court case.

• Debt collection. When customers do not pay their debts, a business owner must utilize approved practices in order to collect. Lawyers advise business owners on what they legally can and cannot do during the collection process.

• Buying and selling a business. Legal representation is vital when buying, selling or exiting a business so that buyout terms, contract negotiations, termination of the seller’s obligations are accurately understood and supported in the legal paperwork.

Small business owners have enough to handle with day-to-day operations without having to deal with legal matters as well. One slight misinterpretation of the law can result in a costly lawsuit that bankrupts a business. Therefore, hiring skillful and experienced small business attorneys should not be considered an optional expense when setting up a new enterprise.  Discuss your business with an experienced attorney today.

P.S. With an attorney to ensure your legal needs are covered, you”ll have some extra time in your busy schedule.  Check out how other business owners spend their day.

Related articles

• Small Business Owners: Here”s How to Manage Your Time [INFOGRAPHIC] (mashable.com)

Are you over-paying your property taxes?

While property values continue to drop in Minnesota, many people are finding that they are paying more than ever in property taxes. Why? Cuts in state aid have forced cities and counties across the state to increase tax levies to make ends meet.

You have rights

• Though property taxes may seem outside the control of home and business owners, individuals do have the right to challenge their tax assessment. Minnesota law allows any person with an interest in property to object to the tax assessed on that property if they believe it has been assessed unfairly.
• An “unfair” assessment is one that is unequal in comparison to other property in the city or county where the property is situated or when the property value used to make the assessment is greater than the property’s actual value.
• Anyone who objects to their property tax assessment as unfair has the right to have this claim reviewed by a district court in the county where the property lies or by the Tax Court.
• A taxpayer is allowed access the records of the property tax assessor in making their case that the assessment is unfair. The court will review the evidence presented by the taxpayer and the municipality in deciding whether to adjust or keep the original assessment. Not all challenges to property tax assessments reach the court, as the city or county levying the tax is allowed to offer to reduce the property’s valuation. If the taxpayer chooses to accept this offer, the parties can avoid going to court.

The Process

• The right to challenge a tax assessment is limited. A petition to consider an unfair assessment must be submitted by April 30^th of the year that the tax is due and the petition must meet certain minimum standards and be served upon various different parties.
• A taxpayer may challenge an assessment even if they have already paid the tax and can be entitled to a refund, plus interest, if the court finds the assessment unfair, but if a claim of an unfair tax assessment is not resolved by certain dates throughout the year, the taxpayer will be required to make payments on the assessed amount as laid out by Minnesota law.
• Though appeals of a tax assessment are meant to be generally accessible to the public, there are various complexities in the laws governing the issue and to ensure that all requirements are met, a taxpayer would be well-served by hiring an attorney to help navigate the process.

Click here to discuss your case with a seasoned trial lawyer – at no charge!

Related articles

• TurboTax – How to Estimate Property Taxes (turbotax.intuit.com)

Clearing Up the Mystery of Short Sales

Often you will hear people say “you won’t qualify for a short sale, don’t bother.” Is that sound advice? Unless that person is the bank president or investor on that particular loan, I’m not sure that advice is based in any facts whatsoever. There isn’t a uniform, mathematical formula to determine if someone qualifies for a short sale.

When to Consider a Short Sale

• Every short sale is different, given the circumstances of the property owner and the particular investor or lender on the loan.
• In the investment property context, rental properties may be underwater with negative cash flow. The investor of the property may be in sound financial shape, but the annual loss on the property is starting to take its toll. Could that investor do a short sale on their investment property? The answer is almost always “maybe.”
• First of all, it”s important to realize that there is no legal right to do a short sale. Bottom line: you agreed to repay the debt regardless of the value of the property. The bank did not promise your property would increase in value. However, when it comes to making a sound business decision, it might make sense to try to do a short sale on an investment property. Lawyers have been doing loan workouts on large commercial deals for decades. A short sale is simply another term for a loan workout, but on a smaller scale. A bank will certainly take a hard look at a sound buyer for the investment property and it is possible they will consider settling the accounts with the investor-seller.

What to Expect in a Short Sale

• If the investor-seller has some available cash or is willing to sign a promissory note for a percentage of the deficiency balance on the loan, a deal is more likely to happen in the investment property context.
• How will you know if your lender will work with you? You have to start the process by listing the property and letting your Realtor market your property to hopefully find a good buyer. Given the complex nature of these deals, getting an attorney and law firm on your side is always a good idea.
• What do I need to get started?  Just complete the Short Sale Materials Packet and return to Morgan Kavanaugh.