Learn about the legal necessities of expanding your business from a Rochester business and employment law firm.
Southeastern Minnesota is expected to see a significant increase in the workforce in the near future. Rochester’s Destination Medical Center itself is expected to increase the local economy by about 35,000 jobs. In September, the Southeast Minnesota Index of Leading Economic Indicators forecast increased business opportunities in the area. Local businesses who have worked hard to secure some financial stability may seek to take advantage of the opportunity by growing their business.
But there are legal considerations when growing a business, just as there are when first starting out. Business owners must be aware of employment regulations, tax law, and how to buy out partners, purchase another business or otherwise expand operations.
Do you have a solid legal foundation?
You may be well on your way to legal protection through articles of incorporation, bylaws, partnership agreements and other legal documentation associated with business formation. For business first starting out, proper planning can help the business grow beyond its initial stages.
However, if you are looking to buy out a partner, acquire additional protection against liability, or otherwise set yourself up for expansion, you should have an experienced attorney review your basic formation documents to fully understand your next steps and protect yourself from pitfalls and potential liabilities.
Hiring employees and employment law
There is a lot that goes into hiring employees outside of simply finding the right person for the job (which is hard enough). Hiring an employee can have tax consequences, of course. In addition, you should know about laws regarding discrimination, how to handle disciplinary issues, health and safety regulations, and a host of other employment law issues.
It is essential that as you take on staff you have clear written policies in place regarding these and other matters. Having clear guidance and a well-drafted employee handbook are integral to success as you expand operations.
Acquiring or merging with an existing business
Mergers and acquisitions are a complex area of the law, regardless of the sizes of the businesses involved. But mergers, acquisitions and transfers are also a great way to secure a greater market share, acquire specialized skills or talents and expand the value you provide to customers.
An experienced attorney can help you structure the deal, draft non-competes and help perform due diligence regarding representations and warranties made by the business being acquired.
Finding the right place at the right time
Of course, part of successful expansion also involves real estate. Whether you are negotiating your commercial lease, have land use or zoning issues, or need help understanding the tax credits and financing involved, commercial real estate is a high-stakes and integral component of business expansion.
You want your upgraded facility or second location to provide you with the same solid finances as your first. That may require tough negotiation and will require you to thoroughly understand your commercial lease agreement.