Page 20

InSIDE THIS ISSUE:

BUSINESS TOOLS GROW | NETWORK | PROFIT

u

Management Toolkit • Entrepreneurism Economy Central by Falcon Bank

uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu

RESOURCES THAT HELP YOUR BUSINESS GROW

ENTREPRENEURISM

Common Mistakes

It’s a new year and a good time to review your processes in order to avoid these common business mistakes. By Betsey Lund Ross to taking is significantly reduced. There are other steps a business owner must take to protect personal assets, but the first step is to create a true business entity that distinguishes you, personally, from your business.

W

hether you are a seasoned business person or new to business management, many business leaders make the same common mistakes. Unfortunately, they can create hardship and trouble for the business, even increasing the likelihood of litigation. Here are the top five business mistakes to avoid in 2019.

1 Protect Your Personal Assets The No.1 reason a business owner should create a business entity, e.g. limited liability

20

company (LLC), incorporated entity, etc. instead of operating as a sole proprietor or under assumed name, is to protect personal assets from the business’ liabilities. If the business is operated as a sole proprietorship (or under an assumed name), the business owner’s personal assets are subject to taking if liability is found in a court proceeding. If the business is formed and operated as an LLC, incorporated entity, or some other business entity, the risk that the business owner’s personal assets will be subject

Business Central Magazine // J A N U A R Y/ F E B R U A R Y 2 0 1 9

2 The #MeToo Movement Media reports of sexual harassment claims against some of the biggest executives made headline news in 2018 and there is little doubt the #MeToo movement will continue with full force in 2019. In fact, in 2018, 32 U.S. states introduced anti-sexual harassment legislation. Now is a good time to review your company’s policies to ensure procedures are in place to address claims of workplace sexual harassment. 3 Changes in Minnesota’s LLC Laws In 2014, Minnesota enacted changes to its LLC laws. Many of the changes became

contributor

effective between 2015 and 2018. The changes provide the perfect opportunity for LLC owners and leaders to review their existing agreements. Some of the key law changes pertain to indemnification requirements for nonemployees, default rules on management structure of the LLC, and member control/ operating agreements. Several new default rules will apply unless the LLC’s documents state otherwise. 4 Job Descriptions Job descriptions are valuable, especially when facing legal issues. For example, if the position requires the employee to be at the office, rather that working from home, the job description should specify this. Otherwise, injured or disabled employees may argue they should be allowed to work from home because the job description does not state the requirements to perform work at the office. Now is a good time to review

Betsey Lund Ross, is an attorney with Lund Ross, P.A.

Profile for St. Cloud Area Chamber of Commerce

January/February 2019  

St. Cloud Area Chamber of Commerce Business Central Magazine

January/February 2019  

St. Cloud Area Chamber of Commerce Business Central Magazine