Minnesota Business Lawyer

Practical advice to help you give your business a solid start

Selecting the appropriate legal structure for your business can have a long-term impact on your profitability, your financing options and your ability to grow and expand your operations.  The Holker Law Offices, PLLC guides you through the critical issues of limiting personal exposure to lawsuits and liabilities by selecting the right legal vehicle to drive your business's operations.  We can help you incorporate your business in a way that achieves optimal tax benefits while mitigating the insurance costs and taxable liability concerns.  Our firm is highly familiar with the risks and benefits associated with each of the following types of business entities or contracts:

  • Sole proprietorships
  • Partnerships
  • Family limited partnerships (FLPs)
  • Limited liability partnerships (LLPs)
  • Limited liability companies (LLCs)
  • Buy-sell agreements

Securing loans to grow, operate or expand your business

Obtaining credit is by far the most important concern for entrepreneurs looking to expand their existing operations and start-ups looking to set up shop.  By discussing your loan prospects with an attorney, you can strike the right balance between risk and return. Depending on whether you take on debt or find an equity financeer, your personal exposures to risk may vary. Consider each of these scenarios: 

1. You form a new business.   After the bank reviewed your financial records, they requested collateral for the loan.  Without consulting with an attorney, you use your home as collateral for the loan.  In the event of loan default, you stand to lose your business and your home.  If the documents are complete and legally binding, you may have no option but to accept eviction and foreclosure.

2. You find a new partner to invest in your business. You decide that you want to sell off an equity share in your business to the new partner in exchange for a one-time cash influx — one your business will never have to repay although you will have to share your business profits in future months.  A few months later, the new partner decides to sell his share to your competitor.  Depending on how you structured the sale of an equity share in the business, you may be stuck with a competitor for a business partner.

Each option has its own risks and benefits.  To discuss your concerns about contract negotiation or financing, we invite you to call or contact the Holker Law Offices, PLLC.

Call (763) 416-1672 or contact us online to schedule a free initial consultation.