How to Establish a Business Entity in Minnesota Maybe the most basic and foundational regulation for people who intend to start a business in Minnesota is the formal establishment of their business. The first step is filing the necessary Articles of Organization (for an LLC) or Articles of Incorporation (for a corporation) with the Minnesota Secretary of State. You can find the forms and instructions for establishing an LLC here and the corporate forms here . Those pages also have forms and instructions for modifying established articles as well as changing registered agents or offices. There are also annual renewal requirements in Minnesota, although the process is free for businesses that are active and in good standing. The Minnesota Secretary of State website has forms and instructions for other important tasks, like the statements of dissolution or termination. You’ll also need to register with the IRS to obtain an EIN. You can apply through the IRS website . Minnesota-based businesses are required to register with the Minnesota Department of Revenue as well. Businesses that employ people in the state must register with the Minnesota Unemployment Insurance (UI) Program through the Minnesota Department of Employment and Economic Development. The agency instructs business owners not to register until they have actually paid covered wages. The registration requirements can vary based on the type of employer. Meeting License Requirements in Minnesota Whether you will be subject to license requirements is dependent on the type of work your business will be performing. Minnesota has established an ELicensing web portal to help current business owners and people thinking of starting a business determine whether they will be subject to licensing requirements and apply. From body art and inflatable amusement equipment to equine teeth floating and pawnbrokers, there is a dizzying array of license requirements in Minnesota, and it’s important to familiarize yourself with the licensing requirements, application process and rules that may be relevant for you. If you have questions – which is common due to the complexity of Minnesota licensing regulations – it may be in your best interest to consult with a business lawyer. The referral counselors at the Minnesota Lawyer Referral and Information Service can help you find an experienced and vetted attorney who can assist with any disputes that may arise with the licensing body or hurdles that are standing between you and your business goals. Minnesota Employment Laws One of the ways in which both new and long-time business owners in Minnesota run into legal problems is by inadvertently violating the state’s many employment laws. You can find an index of regulations on the Minnesota Department of Labor and Industry website . These rules cover a vast range of topics, from child labor in agriculture to the penalties for failure to pay workers in an appropriately timely manner. Most employers will find the statutes to be complex and often convoluted. For example, Minnesota doesn’t have a simple, one-line minimum wage law. Instead, the minimum wage you’re required to pay will vary depending on the size of your business, the age of the worker and whether a worker is considered to be in “training”. If you find yourself confused by Minnesota’s business regulations, or an employee has taken or is threatening legal action for alleged violations of Minnesota employment law, you may benefit from consulting with an experienced Minnesota business lawyer. Minnesota Leave Laws As a state, Minnesota didn’t require employers to offer paid sick leave until the earned sick and safe time law went into effect January 1, 2024. However, some municipalities, including Minneapolis and St. Paul, have long required local employers to offer paid sick leave. Minnesota Workers’ Comp Laws The state does require most employers to provide workers’ comp benefits to workers. Although this can be an additional operating cost, these laws are ultimately a net benefit for employers because workers’ comp limits the employer’s liability for injuries. Specifically, injured workers can be compensated for partial wage replacement, medical costs and vocational benefits but can’t seek pain and suffering and other non-economic damages. Minnesota Safety Regulations Another way in which Minnesota subjects businesses to extra regulatory hurdles and hoops is the state’s approach to workplace safety, which is regulated through the Minnesota Occupational Safety and Health Administration (MNOSHA) . For example, Minnesota’s recordkeeping and reporting requirements for job-related illnesses and injuries are more stringent than federal guidelines. Employers in some industries are also required by state law to establish “joint labor-management safety committees” . These required committees force owners to meet with workers to discuss improvements they can make beyond what’s federally required by OSHA. There are even unique rules pertaining to workplace ergonomics . The complexity of MNOSHA regulations can make adherence difficult for new business owners and small employers. If you have concerns or are facing complaints from regulators or your workers, it may be in your best interest to consult with a business attorney. Minnesota Data Privacy and Security Minnesota has a few laws specific to data privacy and security, including the Minnesota Government Data Practices Act, the Minnesota Plastic Card Security Act, the Minnesota Health Records Act (MHRA) and a data breach notification law. Most businesses that adhere to industry-recommended best practices will likely comply with the Minnesota-specific requirements, but some of the state-specific rules, like the data breach notification requirements, may necessitate extra investments. Minnesota Consumer Protections and Return/Refund Policies Minnesota’s consumer protection statutes are not entirely dissimilar from those present in most states. Most of these are not applicable to every business, but it’s important to be familiar with those that you will be subject to through normal operations. The state’s return and refund policies are also comparable to similar laws in other states, but it is important to be cognizant of the requirements and ensure your business – especially if you use e-commerce – is adhering to the rules. Get Help With Business Disputes in Minnesota Are you starting a business in Minnesota, or are you an employer dealing with regulatory violations, workers’ comp claims or alleged violations of the state’s confusing employment laws? The Minnesota Lawyer Referral and Information Service (MNLRIS) can connect you with one of more than 200 qualified and vetted private practice attorneys in the Minneapolis–St. Paul area. Our referral counselors excel at identifying business lawyers who have handled cases similar to yours in the past and can set you on the path to a positive resolution. Call us at (612) 752-6699 to get started .

Personal property is a broad term from a legal standpoint. It covers everything from real estate, cars and collectibles to pets, livestock and intangible assets like stocks and bonds. Even savings accounts, checking accounts and other financial accounts are considered personal property. As such, ownership rights are hugely important for every individual, as is the process of settling ownership disputes if they do arise. How Property Disputes Are Resolved in Minnesota There are several common property dispute resolution mechanisms available to Minnesotans who find themselves embroiled in disagreements and legal actions pertaining to the ownership of property. Some of these processes are considered alternative dispute resolution (ADR), which are specifically alternatives to more resource-intensive and lengthy tort litigation. The most informal resolution mechanism is direct negotiations with the other party. These can occur between individuals, their legal representatives and any other relevant parties. The informality of the process is a major perk. Litigation and even the other formalized ADR processes like mediation and arbitration operate according to standardized processes that are time-consuming and potentially expensive. Many people prefer a resolution that can be reached without a large investment of time and resources. Mediation in Minnesota If negotiations aren’t effective or a more formalized process is needed, people in property disputes may benefit from the involvement of a neutral third party to facilitate a resolution. Mediation can be a voluntary process, but parties might also be ordered by the court to participate in mediation prior to a trial. Even when mediation is court-ordered, acceptance of a mediator’s resolution is still voluntary. Neither party can be forced to agree to the proposed outcome. It’s also important to recognize that the mediator is not a judge and cannot make decisions for either party. They are simply there to use mediation techniques to facilitate a productive dialogue between the parties and, ideally, reach a consensus. Benefits of Mediation The collaborative approach is less adversarial and may allow for the preservation of relationships between parties It’s typically less expensive than arbitration or litigation Scheduling mediation is more flexible than trials Mediation sessions are confidential Arbitration in Minnesota Arbitration is more like a trial, except with an arbitrator or panel of arbitrators instead of a judge. It’s still less formal than an actual court trial and litigation but functions similarly to a trial. This also means the process is typically more expensive than mediation, with parties often being represented by attorneys during arbitration proceedings. Parties can choose for the process to be binding or non-binding. The parties will be legally held to a binding determination by arbitrators, but enforcement of the decision may require going to an actual courtroom if one of the parties refuses to comply. In other words, although arbitration can be binding, it’s often considered less binding than the results of litigation. Benefits of Arbitration Scheduling isn’t quite as flexible as mediation but is still more flexible than a formal court trial and litigation Although more expensive than mediation, arbitration usually costs less than pursuing litigation The arbitration process usually takes less time than formal court proceedings Binding or non-binding decisions made by independent arbitrators may be preferable in scenarios where parties are unable to reach a consensus during negotiations or mediation Can be useful if the input of an expert is necessary to guide decision-making on property disputes Terms in Property Disputes Replevin: This is the formal process of returning seized goods to the owner pending the outcome of a property dispute. For example, a couple may have jointly purchased a car with both their names on the title. The couple breaks up, with one party refusing to grant the other access to the car. The party without the car could file a replevin action to regain possession. Replevin is a short-term solution, and further legal proceedings or alternative dispute resolution are necessary to establish clear ownership. Conversion: This is an unauthorized act that deprives the rightful owner of the property without their consent. For example, if someone borrowed their friend’s camera or computer, then went to a pawnshop and sold it without the friend’s permission. The friend can seek relief through informal negotiations, mediation or small claims court, but full-blown litigation for low-value conversion is uncommon. Detinue: This is a formal demand for the return of wrongfully held property or monetary compensation for the property. Detinue actions are formal legal proceedings in which the joint owner or owner of the property is demanding the return of the property or a formal assessment of damages – often the value of the property being withheld. Resolutions may be the return of the property, payment of the property value or the appropriate portion of value for jointly held property. Do You Need Legal Representation for a Property Dispute in Minnesota? Property disputes can be difficult because the sometimes low value of disputed property doesn’t justify a full court trial. Pursuing alternative dispute resolutions or negotiation may be the preferable path for many people. Even if you do plan on using arbitration or mediation, having your interests represented by an attorney experienced with these processes can be beneficial. The referral counselors at the Minnesota Lawyer Referral and Information Service (MNLRIS) can help you find a private practice attorney with the necessary experience and skills. Call us at (612) 752-6699 to get started .

Employment laws in Minnesota can, in some circumstances, be more complex than the employment laws in other states or federal employment laws. Minnesota has its own more stringent versions of some federal acts as well as some additional employer obligations. Is Minnesota an At-Will Employment State? Yes. At-will employment means either the employee or the employer can terminate the employment arrangement at any time, without notice or cause, as long as the termination is legal. Illegal terminations in at-will employment states like Minnesota include: Termination due to an employee’s membership in a protected class as defined by Title VII of the Civil Rights Act , the Americans with Disabilities Act (ADA) and the Age Discrimination in Employment Act (ADEA) According to federal law, most protected characteristics include race, color, religion, sex, national origin, disability and age Minnesota adds additional protected characteristics in the Minnesota Human Rights Act, including marital status, familial status, public assistance status, sexual orientation and gender identity Although recent interpretation of federal civil rights law includes sexual orientation and gender identity, Minnesota’s human rights law formally adds these characteristics to the protected list. Retaliatory Termination A number of federal laws , including the Occupational Safety and Health Act, the Fair Labor Standards Act and the Family and Medical Leave Act, prohibit retaliatory termination for protected activities. Minnesota’s human rights law specifically prohibits termination for: Participating in an investigation, proceeding or hearing under the Minnesota Human Rights Act Reporting illegal activities of their employers Contract Violation Terminations Some contracts may stipulate specific employee actions that will result in termination. Dismissing an employee when those defined conditions aren’t met may constitute a breach of contract, allowing the employee to pursue legal actions against their employer. This is covered under both federal and Minnesota law. This may extend to implied conditions that are found in employee handbooks or company policy, even if they are not explicitly stipulated in the employment contract. Termination for Legally Protected Leave Although the federal Family and Medical Leave Act (FMLA) does extend protection for a variety of family-related leave types, Minnesota does have its own laws pertaining to parental leave and sick leave beyond FMLA, such as the Pregnancy and Parenting Leave Act (PPLA) . Minnesota also has an additional Paid Leave Law that will go into effect on January 1, 2026. This will entitle employees to paid time off if they need to care for a family member, new child or for specific personal safety issues or military-related events/duties. Meeting Final Paycheck Requirements Minnesota does have strict requirements for issuing the final paycheck for terminated workers and those who quit. You can read more about it in one of our past blogs on the topic . Minnesota state law imposes different rules for terminated workers and workers who quit, granting employers more leeway if the employee terminated their own employment. Minnesota Laws for Terminations and Layoffs Large-scale layoffs, such as those that occur if an employer closes an entire facility, are governed by the Minnesota Worker Adjustment and Retraining Notification (WARN) Act. This law requires employers with more than 100 full-time employees to provide advance notice of closures to workers and relevant parties. Smaller employers are not bound by the law. You can learn more about the requirements here . Hours and Wage Laws Minnesota does have strict requirements for what does and does not constitute a full-time employee as well as statutes pertaining to break times. State statutes are based on workweek calculations (seven consecutive 24-hour periods). The statute only requires overtime pay – one and a half times the worker’s regular rate – if they work more than 48 hours within a single workweek. State laws also require sufficient meal breaks and bathroom breaks , as well as rules allowing nursing mothers to express milk without having their compensation reduced for the time. Employee Handbooks and Policies If you’re an employer in Minnesota, it’s often a good idea to develop and distribute a comprehensive employee handbook that outlines your workplace’s policies and procedures, including acknowledgement of legally required anti-discrimination and harassment policies, as well as procedures for filing formal complaints. Handbooks should also strictly define the various leave and break policies. Although many businesses offer more generous policies than those required by state or federal law, clearly defining the limitations is a good way to protect your business from legal action and prevent employee abuse of your policies. Should You Consult With a Minnesota Business or Employment Lawyer on Your Company’s Policies? Although there are many boilerplate employee handbooks available, standard policies and procedures don’t necessarily work for every type of business or workplace. Working with an employment or business law attorney can be helpful for many entrepreneurs, new business owners and long-time business owners who want to write or modify company policies. If an employee (or past employee) does pursue legal action against your business, the referral counselors at the Minnesota Lawyer Referral and Information Service (MNLRIS) can help you find a local Minneapolis–St. Paul attorney who can assist. Our network includes more than 200 local private practice attorneys in a diverse array of focuses, including business and employment law. Call us at (612) 752-6699 to get started.