What’s new for 2011 Factor Percentages Have Changed The property and payroll factors on Schedule M8A have changed from 6.5 percent to 5 percent each, and the sales factor has changed from 87 percent to 90 percent. Effective for tax year 2011. Federal Legislation Update Several modifications that Minnesota did not conform to in the…
Filing Requirements Corporations doing business in Minnesota that have elected to be taxed as S corporations under section 1362 of the Internal Revenue Code (IRC) must file Form M8. Who Must File Any corporation with a valid federal election under IRC section 1362 is considered an S corporation for Minnesota purposes. The entire share of…
Complete M8A to determine your Minnesota source income and minimum fee. Note: If you conduct all your business in Minnesota, check the box above line 1. Complete columns A and B and enter 1 1.00000 (for 100 percent) on line 18, column B1 (and the remaining columns, as needed). If a qualified subchapter S subsidiary…
Before You File, Complete Your Federal Return Before you complete Form M8, complete federal Form 1120S and supporting schedules. You will need to reference them. Minnesota Tax ID Number Your Minnesota tax ID is the seven-digit number you’re assigned when you register with the department. Generally, this is the same as your sales and use…
Due Date File your return and pay the taxes payable as soon as possible after the end of the tax year, but no later than the due date for filing your federal income tax return. Generally, the due date is: Calendar year returns: March 15 2012 Fiscal year returns: the 15th day of the third…
Payments There are four types of tax payments an S corporation can make — extension, estimated tax, tax return and amended return payments. You can pay electronically, by credit or debit card or by check. (See Payment Options above.) Note: If you’re currently paying electronically using the ACH credit method, continue to call your bank…
Before you complete Form M8, you must complete the following; you will need to reference them: federal Form 1120 Sand supporting schedules, and Schedule KS for each non resident shareholder and to any Minnesota shareholder who has adjustments to income (see page 10). Check Boxes Initial Return If this is the S corporation’s first return…
I filed federal Form 2553 with the IRS to elect to become an S corporation. Do I also need to file a similar form with Minnesota? A: No. Once you have filed Form 2553 with the IRS and it has been approved, Minnesota automatically accepts your S corporation status. Does Minnesota allow a parent S…
If your federal Form 1120S includes a qualified subchapter S subsidiary (QSSS), you must file a single Form M8. However, for computing the minimum fee and allocating income for nonresidents, each entity must compute their own income, deductions, factors and credits separately. Provide a worksheet that separates these items for each entity. Also, attach a…
In general, a financial institution is any national or state bank, bank holding company, savings and loan, or any other corporation that does business that a bank or other financial institution would be authorized to do. Financial institutions complete M8A the same way as other S corporations, except for lines 4 and 14. Line 4—Property…
Complete and provide Schedule KS to each nonresident shareholder and any Minnesota shareholder who has adjustments to income. Purpose An S corporation must provide each non-resident shareholder, and any Minnesota shareholder with adjustments to income, with enough information for them to complete a Minnesota income tax return and determine their correct Minnesota tax. Schedule KS…
A solicitation is defined as a request, an enticement, or an allurement. Non-solicitation agreements prohibit requesting, enticing, or alluring someone to do something. Contractual Agreements Not to Request, Entice, or Allure Non-solicitation agreements are used by many Minnesota businesses. A non-solicitation agreement is a contract. It may be one provision in a contract, or…
Few people can run a business alone. Most business owners need the assistance of employees, vendors, and other independent contractors in order to run their businesses. However, the inclusion of other people in the affairs of a business necessarily includes others in the circle of people who know certain information about the business not generally…
Do you own a business and want to require your employees to keep your business’s information confidential? Are you an employee who is being asked by your employer to sign a confidentiality agreement? Purpose of Confidentiality Agreements A confidentiality agreement is a contract. Contracts are promises. Confidentiality agreements are used in situations where someone will…
Does a Non-Solicitation Agreement Need Independent Consideration? The question is whether a non-solicitation agreement in Minnesota requires consideration similar to that required of noncompete agreements. The short answer is yes, non-solicitation agreements do require independent consideration similar to that required of noncompete agreements. However, in some situations, independent consideration is not required for either a…
Employment Contracts Employment contracts may be written or oral. Employment contracts may be provided to employees who would not otherwise accept employment without the security of a contract, or in cases where the employer wishes to secure certain protections, such as the protection of confidential information or trade secrets. Employment contracts typically set forth the…
Protection Of Confidential Information Minnesota law protects employers’ confidential information and trade secrets in several ways. First, an employee has a generally recognized duty of loyalty to not disclose trade secrets or proprietary information of the employer. Second, the statutory Uniform Trade Secrets Act, adopted by Minnesota, prohibits misappropriation of trade secrets. And third, employers…
Considerations When a corporation is formed, it becomes a legal entity that is separate from the owners or shareholders. The corporation can only act, however, through the individuals who are the incorporators, officers, directors, or shareholders. As part of the process of organizing the corporation, those individuals address a number of organizational matters, such as…
SCOR: Access to Capital for Small Businesses Increased Access to Capital A SCOR offering is a tool for small businesses to raise capital without the prohibitive costs involved in traditional stock offerings. Regulatory Relief and Streamlining Because the offering is registered solely with the state, multiple reporting requirements are eliminated. In addition, the enhanced form…
There are many different types of bankruptcies. Often, each type is referred to by the name of the Chapter in which it is contained in the United States Bankruptcy Code. You’ve probably heard of Chapter 7 and Chapter 13, and maybe even Chapter 11 bankruptcies. The following information may be useful to a business which…
Under Minnesota law, employers have rights when a former employee takes client lists, customer info, computer data, intellectual property, and trade secrets. The Minnesota “Uniform Trade Secrets Act” gives significant rights to employers to protect confidential information and trade secrets. The Act is Codified in Minn. Stat. Ann. § 325C. What is a Trade Secret?…
Creating a thriving, profitable enterprise that sustains through the years is the shared goal of small business owners everywhere—doing so requires foresight, planning, careful execution, and hard work. Most small business owners also hope to see their company continue on after they retire (or at least hope to sell profitably), but many do not realize…
Our firm has recently been contacted by one Anne Goldschmidt regarding an unpaid debt. This appears to be a wire transfer scam, similar to many other scams targeting attorneys. Scam Email 1 Dear Counsel, I am in need of your legal assistance regarding a breach of loan agreement I provided a friend of mine in…
Drafting a rent-to-own lease and purchase agreement for residential real estate can be tricky for new real estate attorneys. Here is one way to do it. Before you start, consider that there are three separate transactions occurring and draft the documents for each transaction separately before you attempting to combine them. Lease First, start with…
Minnesota business attorney Aaron Hall explains when and why business succession planning is needed. Business Succession Planning: Passing Your Business to Your Children Transcription (4:19) (start) When our business owner clients start thinking about their future and trying to avoid the frustrations that can come from a parent/business owner passing away without any sort of…
Emergency Medical Assistance (EMA) covers emergency services for legal noncitizens who are not eligible for regular Medical Assistance (MA) coverage with a federal match, undocumented persons, and nonimmigrants. EMA is administered by the Department of Human Services (DHS); the state receives the regular federal Medicaid match for the cost of EMA services. Eligibility and covered…
Minnesota collection attorney Aaron Hall describes the debt collection process and explains how you can collect debts owed to you. Transcript We frequently receive calls from people who are owed money. They want to know what are their rights, what are their legal options, how do they get the money that is owed to them….
Click here for more attorney scams A firm’s attorney received the following scam email: We have a dispute with: Zimmer Spine 7375 Bush Lake Rd, Minneapolis,MN 55439 They supplied us with Medical Equipment that failed to meet UK safety standards. We have an agreement with them that states if any purchase fails to meet safety…
Minnesota tax attorney Aaron Hall explains the purpose of IRS tax form 8832. Transcript: One of the primary purposes for IRS Tax Form 8832 is to elect to have a business taxed as an S Corp. An LLC, and a Corporation can be elected to be taxed as an S Corp. It does not change…
In this video, Minnesota contract attorney Aaron Hall explains how indemnification is essentially the transference of legal liability. Transcript: Clients often ask me what is indemnification, as found in their contract or an agreement that somebody’s given them. Indemnification is often a confusing word that people misunderstand, they feel like it’s archaic or its some…
