As the calendar turns to 2025, small business owners in Minnesota have a prime opportunity to set their operations on a solid foundation for the year ahead. Whether you’re a seasoned entrepreneur or just starting your venture, a proactive approach to legal matters can save you from future headaches and ensure your business thrives.
Since everyone loves a good Top 10 list, let's look at 10 resolutions you can put on your list as a Minnesota small business owner to set yourself up for growth in 2025.
1. Review and Update Your Business Structure
Your business structure—be it a sole proprietorship, partnership, LLC, or corporation—serves as the backbone of your operations. Over time, your business needs may evolve, making it essential to reassess whether your current structure still aligns with your goals.
For example, if you’ve grown from a one-person operation to employing a team, transitioning from a sole proprietorship to an LLC would offer tax benefits and liability protection. Talk to your business attorney or accountant to evaluate your current structure and make any necessary changes.
2. Review Your Compliance with State and Federal Laws
Legal compliance is an ongoing process, not a one-time task. In 2025, ensure your business complies with Minnesota state and federal regulations, including:
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Licensing: Verify that your business licenses and permits are up to date.
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Employment Laws: Familiarize yourself with Minnesota’s minimum wage updates, overtime rules, and workplace safety standards.
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Tax Filings: Confirm that you’re properly registered for sales tax, payroll tax, and other relevant taxes.
Staying compliant minimizes the risk of penalties and keeps your operations running smoothly.
3. Update Contracts and Agreements
Contracts are the lifeblood of any business. However, outdated or poorly drafted agreements can lead to disputes and financial losses, often ending up in expensive and time-consuming lawsuits.
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Vendor Agreements: Review contracts with suppliers to ensure terms are still favorable.
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Employee Agreements: Update offer letters, non-compete clauses, and confidentiality agreements to reflect current laws and practices.
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Client Contracts: Ensure clarity in payment terms, deliverables, and dispute resolution mechanisms.
If you created your contracts yourself when you were starting out, 2025 is a good time to reach out to an attorney and make sure that your contracts are serving you and your business and are drafted and executed properly.
4. Intellectual Property Protection
Your brand, logo, and unique offerings are valuable assets worth protecting. In 2025, resolve to:
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Register Trademarks: Protect your business name, logo, or tagline by registering them with the U.S. Patent and Trademark Office.
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Monitor Infringements: Regularly check for unauthorized use of your intellectual property.
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Review Copyrights and Patents: Confirm that your creative works and inventions are adequately protected.
- Review Other Proprietary Data: Make sure your client lists and other data are secure and protected from disclosure - these are often some of the most valuable assets your business possesess.
Protecting your intellectual property prevents others from unfairly benefiting from your hard work.
5. Check On Your Employment Policies and Practices
In addition to client data, employees are a very valuable asset, and maintaining a positive workplace culture begins with solid employment practices. Take time to:
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Review Employee Handbooks: Ensure your policies comply with Minnesota’s employment laws and reflect current company practices.
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Update Workplace Safety Procedures: Align with Occupational Safety and Health Administration (OSHA) standards and address remote work challenges, if applicable.
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Conduct Anti-Discrimination Training: Educate your team on Minnesota’s anti-discrimination and harassment laws.
These steps can improve employee morale, reduce turnover, and protect your business from legal disputes.
6. Strengthen Data Privacy and Cybersecurity
With increasing cyber threats, data security is non-negotiable. Minnesota businesses handling customer or employee data must prioritize cybersecurity in 2025.
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Adopt a Data Protection Policy: Outline how sensitive information is collected, stored, and shared.
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Implement Cybersecurity Measures: Use encryption, firewalls, and secure passwords to protect your systems.
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Comply with Data Privacy Laws: Familiarize yourself with Minnesota’s data breach notification requirements and other relevant laws.
Taking these precautions safeguards your reputation and minimizes liability. If you need a referral to a good cybersecurity provider, send me a message and I can connect you with some providers in my network that can assist you.
7. Plan for Succession and Exit Strategies
While it may seem far off, planning for your business’s future ensures a smooth transition when the time comes. Key steps include:
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Drafting a Succession Plan: Identify potential successors and outline how ownership will transfer.
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Creating Buy-Sell Agreements: If you have business partners, establish agreements for what happens if one partner leaves.
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Updating Estate Plans: Align your personal estate plan with your business goals.
Thinking ahead prevents disruptions and protects your legacy.
8. Resolve Outstanding Legal Issues
Unresolved legal matters can hinder your growth. Take time to address:
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Pending Lawsuits: Work with your attorney to resolve disputes efficiently.
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Unpaid Debts: Pursue collections or negotiate settlements for overdue payments.
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Regulatory Violations: Address any outstanding fines or compliance issues.
Clearing these hurdles enables you to focus on future opportunities.
9. Leverage Technology
Advancements in technology can streamline operations and reduce costs. Consider tools that help with:
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Contract Management: Automate contract creation and tracking.
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Compliance Monitoring: Use software to stay updated on changing laws and regulations.
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Document Storage: Securely store and organize critical legal documents.
Leveraging technology can enhance efficiency and keep your business legally sound.
10. Schedule Regular Legal Check-Ups
Finally, make it a resolution to schedule periodic legal reviews. Working with your attorney ensures you stay on top of:
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Changes in laws affecting your industry
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Updates to your business operations
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Potential risks that need mitigation
Regular check-ups provide peace of mind and help you stay proactive rather than reactive.
Let's Get Started
Starting the year with a focus on legal preparedness sets the tone for success in 2025. By adopting these resolutions, your businesses can minimize risks, maximize opportunities, and confidently navigate the challenges ahead. Whether it’s updating contracts, safeguarding intellectual property, or planning for the future, taking these steps now will pay dividends throughout the year and beyond.
Do I Need a Business Attorney?
If you've never had an annual meeting for your LLC, or if you're just getting started and want to make sure your business is off to the right start, let's schedule a Legal Strategy Session online or by calling my Edina, Minnesota office at (612) 294-6982 or my New York City office at (646) 847-3560. My office will be happy to find a convenient time for us to have a phone call to review the best options and next steps for you and your business.
