Minnesota businesses often require employees to sign non-solicitation and confidentiality agreements to protect the business's proprietary information or intellectual property and to prevent employees from using their employer's information to profit at their own businesses. However, improper and poor drafting of these agreements can demolish their effectiveness.
Minnesota entrepreneurs and investors may be interested to know that the U.S. Securities and Exchange Commission has adopted final regulations, effective in the summer of 2016, governing the issuance of stock through crowdfunding. Crowdfunding has become a popular way to raise capital over the internet. It has not been generally used to offer and sell stock, however, because doing so would require compliance with federal securities laws.
The Minnesota Angel Tax Credit Program has $15 million available for high-tech and other business startups in the state for 2016. Half of this amount will be reserved for investors or investment groups funding minority-owned and managed businesses, start-ups that are owned or managed by women or businesses located in Minnesota. The deadline for this program is September 30, 2016.
Businesses that have contracts with the federal government not only have to comply with laws applicable to all enterprises, they also with specific standards imposed by the government. In early September of this year, President Barack Obama issued an executive order containing another standard which may impact business planning for employers seeking federal government contracts.
Minnesota business is changing with the advent of new technologies and the ability to seek customers and investors throughout the country and the globe to assist with business formation and growth. However, new legal issues follow the use of these new platforms -- which can have serious consequences for poorly-prepared ventures.
The National Labor Relations Board issued a decision that may have a tremendous impact on Minnesota's franchises, temporary agencies and business formation on Aug. 27. The NLRB refined its criteria for determining joint-employer status to reflect current economic practices.
Let's say you have a great idea for a product or service that you believe can become a profitable business. Once the idea's kinks and details hammered out, you may be ready for the details of business formation. But what type of business should you register as? There are many types to choose from, one of the most popular being the LLC or limited liability company.
For employers, business planning involves hiring workers. Incorrectly designating an employee as an independent contractor can also have serious penalties from the U.S. Department of Labor and the Minnesota Department of Labor & Industry.
Inventors and creators in Minnesota are legally entitled to royalties for their intellectual property such as products, inventions and artistic creations. However, this right does not last into perpetuity.
Minnesota has enacted a law, MNvest, governing the offering of online equity securities. These standards took effect on June 14 but await the publication of additional rules before the law becomes operational. Businesses and investors are also still waiting for the issuance of rules from the U.S. Securities and Exchange Commission which were required under the JOBS Act.