Running a business in Minnesota is exciting, but it also comes with responsibilities. One of the most important responsibilities is protecting your company from legal and financial risks. The right contracts don’t just keep you compliant—they set clear expectations, prevent disputes, and build trust with your employees, partners, and clients.
Here are some of the key contracts every Minnesota business should consider putting in place:
Operating Agreement (for LLCs) or Shareholder Agreement (for Corporations)
Even if you’re starting a business with your best friend, family member, or your spouse, you need a written agreement that spells out ownership, decision-making, profit distribution, and what happens if someone wants to leave the business. Minnesota law doesn’t require these documents in every case, but without them, you’re leaving major issues up to default state statutes.
Employment Agreements & Offer Letters
When bringing on employees, written agreements clarify roles, responsibilities, pay, and benefits. These contracts can also include important protections such as non-solicitation clauses, confidentiality agreements, and intellectual property ownership.
Independent Contractor Agreements
If your business works with freelancers or contractors, you’ll want a contract that clearly defines the relationship. This helps avoid disputes, protects your company’s ownership of the work, and makes it clear that the worker is not an employee (which is especially important under Minnesota law).
Client or Customer Contracts
Whether you provide services, sell products, or handle long-term projects, client contracts are crucial. These agreements should cover scope of work, payment terms, timelines, and dispute resolution. Minnesota’s Statute of Frauds requires certain types of agreements to be in writing to be enforceable, making clear contracts even more important.
Vendor or Supplier Agreements
If your business relies on suppliers for goods or services, having written contracts in place protects you from sudden changes in pricing, delivery failures, or disputes over quality. This is especially important in industries like construction, manufacturing, or retail.
👉 See: Minn. Stat. § 337 – Building & Construction Contracts (limits certain contract clauses like lien waivers and out-of-state forum clauses).
Confidentiality & Non-Disclosure Agreements (NDAs)
NDAs protect your company’s sensitive information—things like client lists, trade secrets, and proprietary processes. Losing control of this information could be damaging to your competitive advantage and reputation. These agreements not only set clear expectations but are also supported by protections under Minnesota’s Uniform Trade Secrets Act (Minn. Stat. § 325C).
Lease Agreements (for Commercial Space)
If you rent office, retail, or warehouse space, make sure your lease agreement is carefully reviewed. Minnesota commercial leases can be complex, and the “standard lease” offered by a landlord may heavily favor them. A well-negotiated lease protects your rights and keeps your overhead predictable.
👉 See: Minn. Stat. Ch. 513 – Statute of Frauds (leases longer than one year must be in writing).
Why These Contracts Matter
Clear, written contracts are more than just paperwork—they are tools for preventing misunderstandings, protecting your assets, and ensuring your business runs smoothly. Without them, you risk costly disputes, compliance issues, and unnecessary stress.
Get Help Protecting Your Minnesota Business
At North Star Law Group, we help businesses of all sizes put the right contracts in place. From drafting new agreements to reviewing existing ones, we’ll make sure your contracts protect your business today and into the future.
👉 Contact us to schedule a consultation and safeguard your business with strong legal foundations.
