Legal Question in Business Law in Minnesota

#2 Want to start business in same field as employer

Edited version of last question as there seems to be no edit method.

We are CONTRACTORS of a services reseller company.

The company we work for is mismanaged in EVERY way, often fails to pay on time, owes everyone we come in contact with money, keeping things going on endless promises of capital coming in. In fact, they skirt legality by a very thin margin of luck and obvious ability to do so.

The largest balance they owe is to their main provider whose services they resell. The company is constantly on it's last legs, imminent death unless they find an unsuspecting investor which they are hard at work looking for.

They lost their MN office, contractors work from home in one state, owners live in another. One of the contractors provides phone and web applications for a monthly fee which keeps everyone working.

Question: Could we start our own parallel business in the same field safely?

We would be providing our own services, using our own resources, but parallel to this company based on contacts we have and are making.

Sadly, not enough space to give pertinent details.

Thank you


Asked on 4/03/09, 8:59 pm

2 Answers from Attorneys
Daniel Reiff Reiff Law Office

Re: #2 Want to start business in same field as employer

My advice remains the same. I hate to shill for myself, but I HIGHLY recommend you consult an attorney before starting any kind of business, especially in a situation like yours. There are way too many issues to address them in a forum like this. In my opinion, the money spent on an attorney upfront are definitely worth it because a mistake could have disastrous, and far more costly, consequences.

MY STANDARD DISCLAIMER: This is not intended to be legal advice or to create an attorney-client relationship. No attorney-client relationship is intended until you and I sign a retainer agreement.

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Answered on 4/03/09, 9:08 pm
David Anderson Anderson Business Law LLC

Re: #2 Want to start business in same field as employer

Having sued and defended a number of these "spinoff" businesses, I can say with a high degree of confidence:

If there is money in that business, you will be sued.

You are planning on taking customer lists, likely are well informed as to pricing and other business strategy, and are actively plotting your new biz while still on the payroll.

Good luck, esp. if you try to launch this without benefit of business counsel.

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Answered on 4/03/09, 9:35 pm


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