What Does Not Reopening Really Mean, and What Can I Do?
The fact that Minnesota, along with the rest of the country, has now been feeling the economic ramifications of the COVID-19 pandemic for months has many business owners wondering about how, when, and if they will be able to return to their normal business practices. With all the difficult financial hurdles that small businesses are facing, many business owners are asking, “Should I close my business?” In this post, we will touch on what it means to decide not to re-open and what steps you can take if you are planning not to re-open, including Chapter 11 reorganization.
Small Business Attorney Minneapolis
One smart initial step to take if your business is struggling and you’re considering not re-opening is to contact a small business attorney, such as the local Edina business attorneys at Morris Law Group, P.A.. Having an experienced small business attorney represent your interests is invaluable when it comes to re-evaluating or working toward adjustments in any of the contractual entanglements in which your small business is involved.
With the decreases in revenue that many businesses are experiencing, many elements of business ownership have shifted dramatically. A small business attorney can work with you to ensure that you are meeting any regulatory requirements, including compliance with labor laws and maintenance of employment and tax records.
Also, many business owners are currently having to craft new agreements and lease-terms with landlords in the wake of Minnesota’s drastic economic downturn. Attempting to negotiate these types of revised arrangements without the consult of a small business attorney could result in you agreeing to a deal that doesn’t serve your interests or has your business owing more than it should.
Qualified legal expertise is also vital for tending to all regulatory and legal issues regarding unemployment insurance for any employees who have been laid off as a result of the decision not to reopen.
Navigating Chapter 11 Bankruptcy with a Minnesota Bankruptcy Attorney
Another option that is important to consider for those business owners who are not planning to re-open is commercial bankruptcy. Declaring Chapter 11 is a way to reorganize one’s business without jeopardizing the personal assets of stakeholders that are unrelated to the corporation. The laws surrounding business bankruptcy can be incredibly complicated and having a Chapter 11 attorney advocate for you and aid in your navigation of the process is key. For instance, Minnesota businesses that do not follow the relevant laws and file the required paperwork pertaining to the dissolution of the business through Chapter 11 bankruptcy can face continuing tax requirements. Take a look at our bankruptcy division here for more information. Book your free consultation as well.
When deciding to file Chapter 11 bankruptcy, you’ll need to take care of technical legal issues including cancelling your Employer Identification Number, settling up any of your business’s financial obligations, and ending all licenses, permits, and registrations. Completing these steps in a timely and legally informed manner is also crucial for maintaining the reputation that your business has worked so hard to build in the community in which you’re operating, in order to leverage that reputation toward any future business endeavors.
About Morris Law Group, P.A.
Integrity and trust is the foundation of our practice. Our passion for client success is matched only by our experience, our reputation for excellence, and our deep understanding of each and every client’s individual needs.
At Morris Law Group, we don’t just counsel our clients. We invest in them.
We’ve been serving the Edina and Twin Cities communities since 2002. Our attorneys provide personalized, cost-effective legal services to clients seeking help in real estate, business development, commercial litigation, and other matters.
Our experienced Edina attorneys believe that relationships matter, whether a client is trying to navigate a purchase agreement, get a business off the ground, or dissolve a partnership. Our lawyers appear regularly in state and federal court, in administrative hearings, and in various alternative dispute resolution forums, including mediation and arbitration.
Morris Law Group is the top Minnesota law firm for all of your real estate and business legal needs. We advocate for our clients with professionalism, vigor, and with a results-driven approach.
Let’s get started today! For more information or to book a free phone or video consultation, call 952.832.2000 or email email@example.com. You also fill out our confidential contact form.