As a member of a Minnesota Limited Liability Company (LLC), you may encounter circumstances in which the LLC has suffered harm—perhaps due to the actions of another member, a manager, or a third party—yet the LLC itself declines to address the issue. In these situations, you may have the right...
What’s Going On in There? Access to Company Books and Records
Business owners like to keep the business’s financial information secret. This policy can be wise toward outsiders, customers, and even employees. But secrecy becomes a source of frustration and conflict when practiced toward co-owners of the business, and secrecy pursued too far may cross the line into illegality. It’s important...
Five Ways Small Businessowners Can Protect Themselves from Personal Liability and Ensure the Corporate Veil is Strong
Pierce the Veil—It’s not just an emo-rock band touring with Blink 182 this year. It’s a legal term of art that describes an equitable remedy used to bypass the corporate structure and hold business owners personally liable.
Pitfalls for Minority Shareholders
Becoming a minority owner of an LLC or corporation (an owner of less than 50% of the business) is obviously a declaration of faith in the majority owner’s business savvy. It is also a declaration of faith in the majority owner’s good will, because control of a majority interest gives...
LLC Buyout Litigation Basics
Ideally, buyers of a limited liability company will sign a written agreement that describes what they own and how the LLC will be run – and they will follow the rules they made in their agreement.