Legal Question in Business Law in Minnesota

Want to start business in same field as employer

We are employees of a company which resells Internet access services. Our company is very badly mismanaged, often failing to pay employees and providers on time and other such behavior. They owe a great deal of money to everyone, especially their main provider whose services they are reselling. The company is on it's last legs, badly mismanaged, delusions of grandeur, and will go under unless they get investors who would likely not know the full story as is the case with current investors.

Since losing it's office, the employees work from home in one state, the owners live in another. One employee owns an applications hosting business and provides phone and web applications for a monthly fee.

Question: Could employees create a new venture, taking over the customers in a forward moving manner? We would contact creditors to see if they would allow us to continue in a forward moving manner taking care of the customers and finding new business. Our intent would be to begin providing our own services, our own resources, parallel to this company.

Any advise or thoughts would be most appreciated and welcome.

Thanks.


Asked on 4/03/09, 3:19 pm

2 Answers from Attorneys
Daniel Reiff Reiff Law Office

Re: Want to start business in same field as employer

I would need to have more information before being able to give you good advice. Do you have a non-compete agreement? What does your employee handbook say? Has your employer bounced checks to you or other employees? Have you created a business entity, yet? Would you intend to purchase assets or stock from your employer? Why would you be taking over your employer's debt?

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Answered on 4/03/09, 8:16 pm
David Anderson Anderson Business Law LLC

Re: Want to start business in same field as employer

You must act with care-multiple traps in this scenario.

Call or email for help.

I have been advising business owners for 25 yrs.

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Answered on 4/03/09, 5:26 pm


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