Category Archives for Business
Executive Order: “Buy American and Hire American” Focuses on H-1B Foreign Worker Visas
The presidential executive order, “Buy American and Hire American,” will have an impact on Minnesota businesses. The “Hire American” part of the order focuses on the H-1B visa, which is an integral part of the Minnesota workplace. The H-1B classification, created by statute in 1990, allows U.S. businesses to hire highly skilled foreign-born workers for […]
Continue reading Employer Can Have Info about Whether Misclassified Workers Paid Tax
The U.S. Tax Court recently ruled that federal law doesn’t prohibit an employer looking to reduce its tax liability on misclassified workers from receiving information on whether the workers paid tax on the income. Background Businesses often prefer to treat workers as independent contractors to lower their costs and administrative burdens. But the IRS may […]
Continue reading Establishing Residency for State Tax Purposes
Have you been contemplating moving to another state with lower taxes? Your move could lower your state tax bill, but you want to make sure to establish that the new state is your place of legal residency (also known as your “domicile”) for state tax purposes. Otherwise, the old state could come after you for […]
Continue reading City of Saint Paul Rules for Earned Sick and Safe Time Ordinance
Contents Purpose of the Earned Sick and Safe Time (ESST) Ordinance and Rules………………………………………….. 1 Definitions……………………………………………………………………………………………………………………….. 2 What Employees are covered by the ESST Ordinance?……………………………………………………………….. 4 How employees accrue and bank ESST……………………………………………………………………………………. 5 Use of Earned Sick and Safe Time………………………………………………………………………………………….. 7 Paying Employees When They Use ESST………………………………………………………………………………….. 8 When an Existing PTO Policy Complies with the […]
Continue reading How Updates to Minnesota’s Nonprofit Corporation Act Impact You
Given the frenetic state of national politics you would be forgiven for not looking too deeply into what the updates to Minnesota’s Nonprofit Corporation Act (Chapter 317A) mean to you and your organization. On April 18, 2017, the Minnesota Senate approved changes to the Act and the Minnesota House approved the same changes on February […]
Continue reading The Ins and Outs of Deducting Legal Expenses
Legal expenses incurred by individuals are typically not currently deductible under the federal income tax rules. Instead, they’re most often treated as either personal outlays (which are nondeductible) or as part of the cost of acquiring an asset, such as real estate. In the latter situation, legal costs usually aren’t deductible right away; instead, they […]
Continue reading Spring Cleaning: When Can You Purge Your Old Financial Records?
Feeling the urge to purge? April 17, 2018, is the deadline for individuals and C corporations to file their federal income tax returns for 2017 (or to file for an extension). Before you clear your filing cabinets of old financial records, however, it’s important to make sure you won’t be caught empty-handed if an IRS […]
Continue reading Minnesota Public Benefit Corporation Annual Reports: 2017 Status Update
We are celebrating the second full year of public benefit corporations in Minnesota. Public benefit corporations are for-profit corporations that have elected to add a social “benefit” purpose in addition to a general business purpose. This additional social purpose allows public benefit corporations to elevate pursuing a social good through business to a status at […]
Continue reading Crowdfunding Fraud: The Risk is Real and Growing
Crowdfunding, the practice of funding a project or venture by raising many small amounts of money from a large number of people typically via the Internet, is no longer a novelty. Since their beginnings in the early 2000s, crowdfunding portals have exponentially proliferated across the web. The more successful platforms have become household names, like […]
Continue reading Lawyer Non-Engagement Togstad Letter Template: Declining Representation
A standard practice for law firms and attorneys in Minnesota is sending a Non-Engagement Letter (i.e. Togstad Letter) to everyone who contacts the firm or lawyer but does not hire the firm or lawyer. While this may sound like an unnecessary burden, it is the best way for a lawyer or law firm to avoid potential […]
Continue reading Tax Court Interprets Exceptions to the PAL Rules for Rental Properties
Real estate owners who rent their properties often incur tax losses due to depreciation write-offs and other allowable deductions. However, the ability to deduct those losses might be postponed indefinitely by the passive activity loss (PAL) rules. In general, these rules limit deductions for rental property PALs to the amount of income that you […]
Continue reading Recent Developments May Affect Passive Investors with Losses
Do you materially participate in a business or rental activity — or are you just a passive investor who isn’t directly involved in a project’s day-to-day operations? The IRS has prescribed seven tests to help individuals classify income, gains, and losses from activities as passive or nonpassive. The passive activity loss (PAL) rules have been around […]
Continue reading Selling Large Assets and Minimizing Taxes
Some of our clients have large assets and now want to dispose of those assets. They might have started a business with sweat equity and now want to retire or exit the business. They might have purchased a publicly-traded stock, such as Amazon, Apple or Microsoft in the early days and hold a very large position […]
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Will Baby Boomers Have Anything Left to Pass Down?
The Baby Boomer generation – the largest generation in American history to date – is heading into retirement, but are they prepared? More importantly for their children and grandchildren – and possibly the economy as a whole – will there be anything left to bequeath when they pass away? It appears some Baby Boomers have […]
Continue reading Employee Misclassifcation: Eight Myths Debunked
Some employers incorrectly treat workers who are employees under the FLSA as independent contractors. This is called “misclassification.” Common myths about misclassification include Employers may not misclassify an employee for any reason, even if the employee agrees. A worker is not an independent contractor under the FLSA merely because they work offsite or from home […]
Continue reading Employee or Independent Contractor? IRS and DOL Guidelines
Internal Revenue Service Guidelines An employer must generally withhold federal income taxes, withhold and pay over social security and Medicare taxes, and pay unemployment tax on wages paid to an employee but not to independent contractors. To determine whether an individual is an employee or an independent contractor examine the following: 1) Behavioral control Does […]
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Regulation Crowdfunding: Observations After Six Months
At the end of February 2017, the Securities and Exchange Commission (SEC) published a white paper studying crowdfunded offerings from May to November 2016. The report highlighted that during these first six months following the effective date of Regulation Crowdfunding, the fundraising method was attracting many issuers that had not extensively raised money before. The […]
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Relying on Audit Techniques Guides
IRS examiners usually do their homework before meeting with taxpayers and their professional representatives. This includes reviewing any relevant Audit Techniques Guides (ATGs) that typically focus on a specific industry or audit-prone business transaction. Though designed to help IRS examiners prepare for audits, ATGs are available to the public. So, small business taxpayers can review […]
Continue reading Attorney for Minnesota Dental Professionals
In recent years, dental professionals have been faced with an increasingly complex economic and legal environment. It can be a struggle just to stay current with dentistry developments; trying to keep pace with the ever-evolving business and regulatory side of the profession, has proven practically impossible. To maximize success, leading dental professionals—including dentists, orthodontists, periodontists, oral surgeons, endodontists, and their businesses—are beginning to recognize […]
Continue reading FMLA Retaliation Test, Examples, and More
In 2013 the Family and Medical Leave Act of 1993 (FMLA) was amended by the United States Department of Labor (DOL). Here are some of the most significant changes. Qualifying Exigency Leave Previously, the FMLA only provided for family members to take leave if they had a family member who had been notified of an […]
Continue reading Minnesota Background Check Laws for Employers
In 2013, Minnesota law was amended to bar employers from making early inquiries into a job applicant’s criminal history. Limitations to Criminal Background Inquiries Starting in 2014, employers were only allowed to look into a an applicant’s criminal background: After the applicant has been selected for an interview; or If there is no interview, after […]
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Buying & Selling a Sales Rep Agency
When it comes to selling your business or sales agency — what can you reasonably expect to achieve? How is it achieved? What are prospective buyers looking for as new owners and business partners? What is a fair middle-ground that can be achieved by both parties concerning an agency ownership transfer? Our experienced business attorneys, […]
Continue reading Self-Employment Tax Reduction Strategies for Spouse-Owned Businesses
If you own a profitable, unincorporated business with your spouse, you’re probably fed up with high self-employment (SE) tax bills. An unincorporated business in which both spouses are active is typically treated as a partnership that’s owned 50/50 by the spouses — or a limited liability company (LLC) that’s treated as a partnership for tax […]
Continue reading Seeking Startup Investors: Registering a State Securities Offering
Merit Review in State Securities Offering Registrations This article discusses the “merit review” process when seeking state registration of a securities offering. Background If you are trying to sell ownership of your company to investors, you are engaged in the sale of securities. The sale of securities is regulated by state and federal securities laws. […]
Continue reading Failure to Plan is a Disaster for Clients and their Advisors
Savvy planners know that failing to plan is not desirable. Benjamin Franklin is often quoted, “If you fail to plan, you are planning to fail.” Few planners would guess how many of their clients might not have a plan in place. According to a recent survey by Harris Poll, 64% of Americans do not even […]
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What Is a Simplified Employee Pension (SEP)?
Simplified Employee Pensions (SEPs) are stripped-down retirement plans intended for self-employed individuals and small businesses. If you don’t already have a tax-favored retirement plan set up for your business, consider establishing a SEP — plus, if you act quickly enough, you can claim a deduction for your initial SEP contribution on your 2016 tax return. […]
Continue reading Planning for Retirement Benefits: Get it Right the First Time
Retirement assets comprise a large portion of most Americans’ total wealth. By March 2015, retirement assets hit $24.9 trillion. That’s a lot of money! The key to maximizing and maintaining that large chunk of your clients’ wealth is to keep the money in the retirement plan for as long as possible. Two Reasons There are […]
Continue reading 2017 Estate & Gift Tax Update
The Estate Tax In 2001, Congress passed a law that made big changes to the estate tax. It raised the amount that could pass without tax, increasing it in steps from $675,000 in 2001, to $3.5 million in 2009. Then, in 2010, the estate tax was repealed for one year only—2010. However, late in 2010, […]
Continue reading Trump Administration Appointees & Future U.S. Trade Policy
President Donald Trump has nominated Wilbur Ross Jr. to be the next Secretary of Commerce, and Robert Lighthizer to be the next U.S. Trade Representative. As of this writing, both are still undergoing confirmation by the U.S. Senate (Mr. Ross was approved by a voice vote of the Senate Commerce, Science and Transportation Committee on […]
Continue reading Start Up Fundraising: Disclosures in Private Placement Memorandum
Link to Free Small Business Guide Download Questions answered in video: What is an example of a disclosure in the context of a security offering? How do you decide what information should go in there? What should you do with the information you do not want to tell investors? What if you have bad information […]
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