Tax
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Tax Treatment of Escrow Funds in Private Sales
Key Takeaways Escrow funds are generally not taxable when received but become taxable income when control or ownership is established by the recipient. The …
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Tax Implications of Reverse Vesting Agreements
Key Takeaways Reverse vesting triggers ordinary income tax as shares vest, based on fair market value at each vesting date unless an 83(b) election is made. …
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MN Tax Nexus From Remote Workforce Presence
Minnesota tax nexus occurs when a remote workforce establishes sufficient physical or economic presence within the state. Remote employees working in Minnesota …
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Preparing for a Surprise State Tax Audit in MN
Preparing for a surprise state tax audit in Minnesota involves promptly collecting and organizing all relevant financial documents, including income statements, …
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Documenting Employee Loans to Avoid Tax Reclassification
Effective documentation of employee loans requires a formal written agreement detailing the loan amount, clear repayment terms, and an interest rate at or above …
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Tax Consequences of Cancelled Equity Grant Agreements
Cancelled equity grant agreements generally do not trigger taxable income if cancelled before vesting, as no ownership transfer occurs. Income recognition is …
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When Ownership Records Don’t Match Tax Filings
Discrepancies between ownership records and tax filings often arise from delays in updating transfers, clerical errors, or complex ownership arrangements. Such …
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Tax & Legal Implications of Management Fee Arrangements
Management fee arrangements must be carefully documented with clear contractual terms defining services, fee calculation, and payment procedures to ensure legal …
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Legal Structure of Promissory Notes With Equity Kickers
Promissory notes with equity kickers are structured as hybrid debt instruments combining an unconditional promise to pay principal and interest with rights to …
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How Small Businesses LEGALLY Pay Less Tax
You Pay Tax on Profits, Not Revenue Business owners have one of the greatest abilities among all U.S. taxpayers to minimize their taxes—because you’re taxed on …
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Warrants With No Expiry or Exercise Mechanism Defined
Warrants without defined expiry or exercise mechanisms pose significant challenges in valuation and enforceability. The absence of temporal limits complicates …
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Allocating Depreciation in Multi-Member LLCs
Allocating depreciation in multi-member LLCs involves systematically distributing asset cost over its useful life according to members’ ownership percentages or …
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Problems With Using One EIN Across Entities
Using one EIN across multiple entities poses significant legal and compliance risks by obscuring their distinct legal identities and increasing liability …
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When to Use Tax Gross-Up Clauses in Agreements
Tax gross-up clauses are used when payments in agreements may generate additional tax liabilities for the recipient, ensuring the net benefit remains unchanged. …
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Tax Issues in Business Partner Buyout Transactions
Tax issues in business partner buyout transactions primarily involve capital gains tax triggered by ownership interest sales, with attention to adjusted tax …
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Tax Implications of Equity Forfeiture After Termination
Equity forfeiture after termination typically results in no immediate tax liabilities for unvested stock options or RSUs, as these are generally forfeited …
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Late Filing of Form D Triggering State Enforcement
Late filing of Form D often prompts state enforcement due to mandatory disclosure deadlines under both federal and state securities laws. States rigorously …
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Renegotiating Loan Terms After Technical Defaults
Renegotiating loan terms after a technical default involves proactive communication and thorough financial evaluation to rebuild lender trust. Borrowers must …
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Tax Implications of Charging Royalties to Subsidiaries
Charging royalties to subsidiaries involves adherence to transfer pricing rules ensuring arm’s length rates, supported by thorough intercompany agreements and …
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Ownership Structures That Trigger Unintended Tax Events
Ownership structures such as closely held corporations, partnerships without formal agreements, and family trusts often trigger unintended tax events due to …
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Tax Considerations When Selling Business Intellectual Property
When selling business intellectual property, it is essential to determine whether the transaction constitutes a sale or licensing, as this affects tax …
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Preparing for IRS Scrutiny of Shareholder Loans
Preparing for IRS scrutiny of shareholder loans requires clear documentation, including formal loan agreements that specify principal amounts, reasonable …
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Withholding Tax Clauses in International Contracts
Withholding tax clauses in international contracts allocate tax responsibilities on cross-border payments, ensuring compliance with domestic laws and applicable …
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Owner Draws Classified as Loans: Tax & Legal Impact
Owner draws classified as loans create distinct tax and legal implications, transforming equity withdrawals into formal liabilities with repayment obligations. …
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Tax Implications of Repricing Stock Options
Repricing stock options adjusts the exercise price, potentially treating the modification as a new grant for tax purposes. Employees may recognize ordinary …
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Recharacterizing Distributions as Compensation by IRS
The IRS defines compensation broadly to include all remuneration for employee services, encompassing wages and bonuses subject to employment taxes. Certain …
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Legal Exposure From Failing to Issue K-1s Correctly
Failing to issue Schedule K-1s accurately or on time exposes entities to IRS penalties, including fines for late filing, inaccuracies, and failure to furnish. …
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Structuring Redemptions to Avoid Dividend Treatment
Structuring redemptions to avoid dividend treatment requires meeting specific IRS criteria that classify the stock redemption as a sale or exchange rather than …
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Tax-Free Reorganizations & IRS Section 368 Requirements
IRS Section 368 establishes precise criteria for tax-free reorganizations, allowing corporations to restructure without immediate tax consequences. These …
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Internal Business Transfers That Trigger Sales Tax Liability
Internal business transfers may trigger sales tax liability when they involve a bona fide sale, consideration exchanged, or a change in ownership, depending on …
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Tax Issues in Forgiving Intercompany Loans Without Interest
Forgiving intercompany loans without interest raises significant tax issues, including potential recognition of taxable income by the debtor and loss …
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Tax Nexus Triggered by Out-of-State Remote Workers
Tax nexus arises when out-of-state remote employees establish a taxable business presence in their home states. This presence obligates employers to register, …
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Warrants Issued With Debt: Tax & Legal Risks
Warrants issued with debt carry significant tax and legal risks including complex valuation requirements that affect debt discount and original issue discount …
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IRS Requirements for Arm’s Length Intercompany Loans
The IRS requires intercompany loans to comply with the arm’s length principle, ensuring loan terms, including interest rates and repayment schedules, reflect …
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83(b) Mistakes in Restricted Stock Issuance
Common 83(b) mistakes in restricted stock issuance include missing the strict 30-day filing deadline, submitting incomplete or incorrect election forms, and …
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Revenue Sharing vs. Equity: Legal & Tax Implications
Revenue sharing involves distributing a portion of revenue as taxable income upon receipt, without conferring voting rights or ownership control. Equity …
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IRC §721 Compliance in Service-for-Equity Deals
IRC §721 provides for nonrecognition of gain or loss on property contributions to partnerships but expressly excludes services. Contributions of services …
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Partnership Tax Allocations With Non-Pro Rata Distributions
Partnership tax allocations involving non-pro rata distributions deviate from ownership percentages and must comply with IRC Section 704(b) to ensure …
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Tax Risk From Improper Treatment of Reimbursed Expenses
Improper treatment of reimbursed expenses creates significant tax risks, including misclassification that may result in taxable income for employees and …
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Section 351 Contributions That Fail Legal Substance
Section 351 contributions that fail to demonstrate legal substance do not qualify for tax-free treatment. Such contributions lack genuine economic change, often …
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Filing Composite Returns for Multi-State LLC Members
Filing composite returns allows multi-state LLCs to consolidate nonresident members’ state tax liabilities into a single filing, simplifying compliance by …
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Tax Problems From Improper 754 Election Handling in Buyouts
Improper handling of a Section 754 election in partnership buyouts often causes misalignment between the asset basis inside the partnership and the outside …
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Tax Penalties From Failure to Maintain S-Corp Qualifications
Failure to maintain S-Corp qualifications triggers automatic termination of S-Corp status, resulting in immediate loss of pass-through taxation. The corporation …
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Related-Party Lease Terms That Trigger IRS Scrutiny
Related-party lease terms that trigger IRS scrutiny often include below-market rents, extended or unusual lease durations, and automatic renewals that lack …
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Tax Exposure From Improper Handling of Nonrefundable Deposits
Improper handling of nonrefundable deposits leads to tax exposure through premature income recognition and misclassification as revenue rather than liabilities. …
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Tax Implications of Debt Financing vs. Equity Financing
Debt financing offers significant tax advantages since interest payments are generally deductible, reducing corporate taxable income and effectively lowering …
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Successor Liability for Unpaid Payroll Taxes Post-Sale
Successor liability holds acquiring entities responsible for a predecessor’s unpaid payroll taxes post-sale, grounded in statutory law and court rulings aimed …
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Tax Implications of Profits Interests in LLCs
Profits interests in LLCs grant rights to future profits without entitlement to existing capital, resulting in no immediate tax upon grant if structured …
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Timing Issues in Section 83(b) Elections
Timing issues in Section 83(b) elections arise primarily from the rigid 30-day filing deadline following property transfer. Failure to file timely results in …
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Tax ID & IRS Updates After Corporate Name Changes
When a corporation changes its name, it must promptly notify the IRS to maintain alignment with its Employer Identification Number (EIN) for accurate tax …
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Tax-Free Reorganizations & Legal Documentation Requirements
Tax-free reorganizations must comply with stringent legal documentation requirements to qualify under Section 368 of the Internal Revenue Code. This includes …
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Stock Redemption vs. Purchase: Legal & Tax Differences
Stock redemption involves a company repurchasing its own shares, reducing outstanding shares and requiring compliance with statutory solvency tests and …
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Tax Problems From Improperly Structured Management Fees
Improperly structured management fees often result in tax challenges, including disallowed deductions, penalties, and increased scrutiny from authorities due to …
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Drafting Gross-Up Clauses With Withholding Limits
Drafting gross-up clauses with withholding limits requires clear allocation of tax liabilities to secure the payee’s intended net receipt while capping the …
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Tax Document Electronic Filing Best Practices Guide
Tax document electronic filing requires thorough preparation of forms and receipts, use of secure, compatible software supporting IRS and state specifications, …
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Bonus Depreciation for EV Charging Station Installation
Bonus depreciation permits immediate deduction of qualified EV charging station installation costs, including equipment and labor, when placed in service within …
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Close Corporation Shareholder Loan Forgiveness Tax Implications
Forgiveness of shareholder loans in a close corporation generally constitutes a taxable event, with the forgiven amount treated as income by the corporation, …
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Cryptocurrency Mining Equipment Depreciation Schedules
Cryptocurrency mining equipment depreciation schedules allocate the cost of assets like ASIC miners and GPUs over their defined useful life, typically 1.5 to 5 …
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Reverse Morris Trust Tax-Free Spin-Off Criteria
A Reverse Morris Trust achieves tax-free status by meeting specific criteria, including the parent company’s spin-off of assets to shareholders followed by a …
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Bonus Depreciation for EV Charging Infrastructure
Bonus depreciation permits immediate deduction of up to 100% of the cost for eligible EV charging infrastructure placed in service during the tax year, …
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State Tax Exemption for Sustainable Packaging Innovations
State tax exemptions for sustainable packaging innovations provide financial incentives that reduce costs for manufacturers and retailers adopting eco-friendly …
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Tax Credit Phase-Out Calculation
Tax credit phase-out calculations decrease credit amounts as a taxpayer’s income exceeds certain thresholds. These calculations often follow a sliding scale, …
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Tax Treatment of Minnesota Cooperative
The tax treatment of Minnesota cooperatives is governed by specific classifications such as Subchapter T corporations or Section 521 tax-exempt entities. These …
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Tax Implications of Client Reward Programs
Client reward programs entail distinct tax implications for both businesses and consumers. Cash rewards are typically considered taxable income, while non-cash …
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Personal Holding Company Tax
Personal holding companies (PHCs) are corporations primarily holding passive investments, such as stocks and bonds. They face specific tax regulations aimed at …
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Passive vs. Active Business Income Tax Treatment
Passive and active business incomes are taxed differently, influencing overall tax liabilities. Active income, derived from direct involvement in business …
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Personal Holding Company Tax & Avoidance Strategies
Personal Holding Companies (PHCs) are subject to specific tax implications due to their structure and income sources. They face elevated tax rates on …
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Tax Implications of Employee Sabbatical Programs
Employee sabbatical programs carry various tax implications for both participants and employers. Sabbatical pay is generally taxable income, requiring diligent …
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Tax Implications of Minnesota Artisan Grants
Tax implications of Minnesota artisan grants include understanding the classification of grants as either unrestricted or restricted. Unrestricted grants may be …
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Minnesota Taxidermy Business Regulations
Minnesota taxidermy businesses must comply with a range of regulations governing licensing, record-keeping, and ethical practices. Operators need a state-issued …
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6 Types of Legal Tax Strategies for Midsized Businesses
Owners of midsized businesses have a variety of tax strategies available to legally reduce income taxes. With careful planning, business owners can ensure …
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Tax Implications of Severance Packages: Legal Considerations
The tax implications of severance packages significantly affect both employees and employers. Severance payments are categorized as supplemental wages and …
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Why Are Tax IDs So Easy to Mess Up
The Importance of Tax IDs for Your Business Understanding the significance of tax identification numbers (Tax IDs) is crucial when running a business. Mistakes …
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How to Avoid Paying a Business Sales Tax Penalty: Abatement Appeals
Penalty Abatement for Businesses Source: https://www.revenue.state.mn.us/penalty-abatement-businesses The Minnesota Department of Revenue may assess penalties …
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Isolated and Occasional Sales Taxes in Minnesota
Minnesota Sales Tax Guide for Isolated and Occasional Sales The following is the current (updated July 2023) Fact Sheet for Minnesota Sales Tax Guide for …
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Health Care Facilities Taxes in Minnesota
Minnesota Sales Tax Guide for Health Care Facilities The following is the current (updated July 2023) Fact Sheet for Minnesota Sales Tax Guide for Health Care …
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Food and Food Ingredients Taxes in Minnesota
Minnesota Sales Tax Guide for Food and Food Ingredients The following is the current (updated July 2023) Fact Sheet for Minnesota Sales Tax Guide for Food and …
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Drugs Taxes in Minnesota
Minnesota Sales Tax Guide for Selling Drugs The following is the current (updated July 2023) Fact Sheet for Minnesota Sales Tax Guide for Drugs. The following …
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Dietary Supplements Taxes in Minnesota
Minnesota Sales Tax Guide for Dietary Supplements The following is the current (updated July 2023) Fact Sheet for Minnesota Sales Tax Guide for Dietary …
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How Does the IRS See Your DBA?
Unraveling the IRS Perspective on DBAs When starting a business, many entrepreneurs choose to operate under a “Doing Business As” (DBA) name instead of their …
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What Is Your Tax Schedule When Owning an LLC
Tax Obligations for LLC Owners: Understanding Your Tax Schedule If you own a Limited Liability Company (LLC), understanding your tax obligations is essential. …
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How Does the IRS See Your LLC?
Decoding the IRS Perspective: How the IRS Views and Taxes LLCs Limited Liability Companies (LLCs) have become increasingly popular as a business structure due …
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Service Businesses: Should You Charge Tax for Labor?
Service Businesses and Taxes Should service businesses charge sales tax for labor? Traditionally, sales tax only applied to the sale of goods, not services. …
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Do US Content Creators Have to Pay Taxes on Income Earned Abroad?
US Content Creators and Income Earned Abroad In an increasingly interconnected world, content creators have expanded their reach to international audiences, …
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What Are the Types of Taxes?
The Types of Taxes Taxes provide the necessary funds for governments to provide public services, infrastructure, and various social programs. However, …
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How to Find Out if Your Business Needs to Collect Sales Tax
Understanding whether your business is required to collect sales tax is crucial for staying compliant with tax regulations and avoiding potential legal issues. …
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5 Tax Write-Offs LLC Owners Overlook
When it comes to managing the finances of a new business, every dollar saved counts. As a new business owner operating as a Limited Liability Company (LLC), …
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The Difference Between an EIN, Tax ID, and Social Security Number
Introduction In this video, you will get answers to these questions: What is the difference between an EIN, Tax ID, and Social Security Number? What is an EIN …
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What Money Do You Pay Taxes On When Selling Products?
In this video, you get answers to these questions: What money do you pay taxes on when you are selling a product? How do you determine what your tax liability …
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What Are the Tax Advantages of Having a Business vs. Running an Operation as an Individual?
In this video, you get answers to these questions: What are the tax advantages of having a business vs. running an operation as an individual? Do you want to …
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Taxes on Shipping and Handling
In this video, you get answers to these questions: As a business owner, do you have to pay tax on the money you receive from shipping and handling? What are …
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How is a Social Club Taxed? IRS Guidance on 501(c)(7)
Introduction Social clubs are exempt from federal income tax under IRC 501(a) as organizations described in IRC 501(c)(7) if they are “organized for pleasure, …
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Taxable and Non-Taxable Portions of Severance Pay
This article deals with whether employers must pay front pay severance payments as W-2 wages or whether employers are allowed to pay the front pay severance as …
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Rai M. Kharal – Minnesota Tax Partner with Prudent Accountants
Minnesota attorney Aaron Hall speaks with Rai M. Kharal of Prudent Accountants, a “strong team of individuals with extensive education and training as Certified …
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Tax Information on Medical Cannabis FAQ
Under Minnesota law, medical cannabis is defined as cannabis provided to a registered patient taken as a liquid, pill, or by vaporizing. Minn. Stat. § 152.22, …
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Overview of Casualty Loss Taxation
A General Overview to Casualty Loss Taxation in a Manufacturing Business Setting or: How I Learned to Stop Worrying and Love the Tax System I. Introduction II. …
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IRS Guidance: Rely on It at Your Own Peril
Benjamin Peeler, JD, CPA, LL.M., at Eide Bailly A recent tax court case reminds us that not all published guidance from the IRS serves as an authoritative …
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Sustainable Forest Incentive Act: Minnesota Property Tax
What is the Program? Legislation passed in 2001—the Sustainable Forest Incentive Act (SFIA)—allows annual payments to be made to enrolled owners of forested …
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Green Acres (Minnesota Agricultural Property Tax Law): Minnesota Property Tax
The Green Acres Program provides property tax relief for owners of agricultural property in areas where the market value of land is being affected by …
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Special Agricultural Homestead: Minnesota Property Tax
What is a Special Agricultural Homestead? The Special Agricultural Homestead provision extends homestead status to property owners who do not live on their farm …
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State General Levy: Minnesota Property Tax
Background During the 2001 legislative session, Minnesota enacted the first state property levy since taxes payable in 1967. The tax is only on certain …
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Special Homestead Classification: Class 1b Minnesota Property Tax
Special Homestead Classification: Class 1b Special Homestead Classification: Class 1b provides a reduced class rate for qualifying blind/disabled property …
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How the Assessor Estimates Your Market Value: Minnesota Property Tax
This fact sheet is the second in a series of three fact sheets that were designed to assist taxpayers in the understanding of the basic concepts of their …
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Understanding Property Taxes: Minnesota Property Tax
This fact sheet is the first in a series of three fact sheets that were designed to assist tax payers in the understanding of the basic concepts of their …
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Appealing the Value or Classification of Your Property: Minnesota Property Tax
Each spring your county sends you a property tax bill. Three factors that affect your tax bill are: the amount your local governments (town, city, county, etc.) …
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Classification of Property: Minnesota Property Tax
In Minnesota, property is classified according to its use on the assessment date—January 2. If the property is not currently being used, it is classified …
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Lawn and Garden Maintenance, Tree and Shrub Services: Minnesota Sales Tax
Minnesota sales tax applies to lawn and garden maintenance, indoor plant care, tree and shrub services, and other taxable services discussed in this fact sheet. …
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Minnesota Sales Tax: Landscaping Construction Contracts
Minnesota sales tax does not apply to landscaping construction contracts for improvements to real property, but sales tax does apply to landscaping maintenance …
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Digital Products: Sales Tax in Minnesota, What You Need to Know
What’s New in 2013 Certain digital products are taxable Starting July 1, 2013, certain digital products are subject to Minnesota sales and use tax. Some …
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Labor – Installation, Construction, and Fabrication: Minnesota Sales Tax
NOTICE: The sales and use tax on repair and maintenance of certain equipment and machinery for businesses has been repealed effective April 1, 2014 This article …
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Labor – Installation, Fabrication and Construction: Minnesota Sales Tax
IMPORTANT: This article is outdated. See guide to Minnesota Sales Tax for Labor, Installation, Construction, and Fabrication, which was updated in 2013. This …
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Storage and Warehousing Services: Minnesota Sales and Use Tax
Update: This tax was repealed on March 21, 2014. The information below is preserved for archival purposes. However, it is no longer in effect. 2014 Law …
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IRS Tax Treatment of Installment Sales
Installment Sales (See footnote 1.) IRC Section 453 defines the appropriate accounting method for reporting income from an “installment sale.” (See footnote …
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Can a Broker be Liable for Poor Tax Advice? For Example: Ill-Advised Annuity Liquidation
Can a broker be liable for tax consequences arising from an ill-advised annuity liquidation? Yes. What about other bad tax advice? Absolutely. In short, a …
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Minnesota Petroleum Tax
Licensing and Filing Information Inside this booklet Need help with your taxes? Information on: We’re ready to answer your questions! Getting a license Filing …
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2013 Sales and Use Tax Legislative Bulletin
This post has been adopted from a Minnesota Department of Revenue document: (2013 Regular Session) Bulletin Date: May 31, 2013 MINNESOTA REVENUE Appeals and …
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Taxes Associated with Detective & Security Services in Minnesota
Detective and Security Services Detective and security services, armored car services, and burglar and fire alarm services are taxable. Sales tax applies to the …
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Minnesota Sales Tax on Prosthetic Devices
This post has been adopted from a Minnesota Department of Revenue Fact Sheet. This fact sheet describes the definition of prosthetic devices and provides a …
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Minnesota Tax on Durable Medical Equipment
This post has been adopted from a Minnesota Department of Revenue Fact Sheet. This fact sheet describes the definition of durable medical equipment and provides …
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Sales Tax on Purchases Made By Minnesota Schools & School Districts
Schools—Sales and Purchases This fact sheet explains how sales tax applies to sales and purchases made by schools and school districts. Types of schools School …
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Sales Tax on Airplanes & Aircrafts in Minnesota
This post has been adopted from a Minnesota Department of Revenue Fact Sheet. Aircraft When you acquire complete or partial ownership of an aircraft, or when …
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Minnesota Sales Tax Guide for Selling Candy & Sweets
The following is the current (updated July 2023) Fact Sheet for Minnesota Sales Tax Guide for Selling Candy & Sweets. The following post has been adopted …
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Minnesota Sales Tax on Exercise Facilities and Health Clubs
The following post has been adopted from the Minnesota Department of Revenue’s Sales Tax Fact Sheet #124, Exercise Facilities and Health Clubs. Fees and …
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Sales Tax on Pets and Pet Grooming, Boarding and Care Services in Minnesota
This post has been adopted from the Minnesota Department of Revenue’s Sales Tax Fact Sheet, Pets and Pet Grooming, Boarding and Care Services. Sales of animals, …
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Minnesota Certificate of Exemption from Sales Tax | Form ST3
Download/View Form ST3 Exemption descriptions See the Form ST3 instructions and exemption descriptions for more information about the following exemptions. …
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Sales Tax on Advertising & Creative Promotional Services in Minnesota
This post has been adopted from the Minnesota Department of Revenue’s Sales Tax Fact Sheet #133, Advertising – Creative Promotional Services. Nontaxable …
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Minnesota Taxes on Lawn and Garden Care, Tree and Bush Service, & Landscaping
This post has been adopted from the Minnesota Department of Revenue’s Sales Tax Fact Sheet #121, Lawn and Garden Care, Tree and Bush Service, Landscaping. Lawn …
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Minnesota Capital Equipment Taxes
This post been adopted from the Minnesota Department of Revenue’s fact sheet 103, Capital Equipment. If you buy or lease qualifying capital equipment for use …
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Soft Drink (Pop, Soda) Taxes in Minnesota
Minnesota Sales Tax Guide for Selling Soft Drinks and Other Beverages The following is the current (updated July 2023) Fact Sheet for Minnesota Sales Tax Guide …
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Minnesota Computer Software Sales Tax Sheet
This post been adopted from the Minnesota Department of Revenue’s fact sheet, Computer Software Sales Tax. TABLE OF CONTENTS Prewritten Computer Software …
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Minnesota Affiliate Marketing Law & Affiliate Nexus Tax Hurts Bloggers
October 2014 Update: Amazon Allows Minnesota Affiliates On September 24, 2014, Amazon announced a new policy allowing Minnesota affiliates beginning October 1, …
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Minnesota S-Corp FAQ: Benefits, Disadvantages, Taxation & Formation
Many Minnesota small businesses choose to form an S Corp because of its pass-thru taxation benefits, payroll tax benefits, and reliability as a traditional …
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Completing S Corporation Tax Form M8A
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. …
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S Corporation Taxes | Form M8 Instructions
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 …
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Filing Corporation Estimated Tax | Minnesota Tax Attorney
Filing Requirements A corporation with an estimated tax of more than $500 must make quarterly payments based on its required annual payment. A corporation is …
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Collection of Minnesota Sales Tax on Purchases from Out-of-State Companies
Q: When a company sells and ships goods from outside Minnesota into Minnesota, does the seller collect the local sales tax from his own state, or the local …
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Tax Rates: Minnesota VS Utah
Minnesota Income Tax: Minnesota collects a state income tax at a maximum marginal tax rate of 7.85%, spread across three tax brackets. Like the Federal Income …
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Understanding Business Taxation in Minnesota
April 2007 | AN EDUCATIONAL GUIDE FOR MINNESOTANS | Focusing on How Minnesota Taxes Business | Produced and Originally Published by the Minnesota Center for …
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Tax Form 8832: Default Rules and Definitions
Introduction to Tax Form 8832 Default Rules for Tax Form 8832 Existing entity default rule Certain domestic and foreign entities that were in existence before …
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Specific Instructions for Tax Form 8832
Name Enter the name of the eligible entity electing to be classified. Employer identification number (EIN) Show the EIN of the eligible entity electing to be …
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Tax Form 8832: Where to File | Where to Send | Where to Mail
Note: Tax forms change from time to time. The information below is not kept current. Please see irs.gov for the latest official information. Filing Tax Form …
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Must Churches File Form 1023 for 501(c)(3) Tax Exemption?
Churches may wonder whether they must file IRS Form 1023 to be considered a tax exempt religious organization under 501(c)(3). The IRS Instructions to Form 1023 …
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MN Authorized Local Sales Taxes That Were Never Imposed
Taxing Jurisdiction & Year AuthorizedRateApproval requiredUse of Revenues/Other CommentsBloomington – 19861.0%City council approvalMall of America site …
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Tax Form 8832 Part I. Election Information
Complete Part I whether or not the entity is seeking relief under Rev. Proc. 2009-41 or Rev. Proc. 2010-32. Line 1. Check box 1a if the entity is choosing a …
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Specific Instructions for Tax Form 8832
Name Enter the name of the eligible entity electing to be classified. Employer identification number (EIN) Show the EIN of the eligible entity electing to be …
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Where to File | Where to Send | Where to Mail Tax From 8832
File Form 8832 with the Internal Revenue Service Center for your state listed below. In addition, attach a copy of Form 8832 to the entity’s federal tax or …
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Completing S Corporation Tax Form M8A
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. …
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Single Sales Apportionment of Corporate Franchise Tax
Apportionment is a key feature of state corporate taxes Apportionment formulas are important features of state corporate income taxes. They determine how much …
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Minnesota Photography & Video Taxes
This post helps explain how Minnesota sales and use tax applies to sales of photography, and to purchases made by photographers. These guidelines also apply to …
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Types of MN Business Entities and Tax Implications
This is part of a series of posts on the tax implications of different business entity types. Types of Business Entities and Tax Implications Various factors …
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MN Withholding Tax Registration | Registering Your Business in Minnesota
Who Must Register for Withholding Taxes You must register to file withholding tax if you: have employees and anticipate withhold- ing tax from their wages in …
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MN Sales and Use Tax Registration | Registering Your Business in Minnesota
What is Sales and Use Tax? Go here for our full guides to Minnesota Sales Tax and Minnesota Use Tax. Do I have to register my business? You must register to …
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Minnesota Tax ID | How to Register Your Business in Minnesota
Minnesota Business Tax ID number You need a Minnesota tax ID number if you: make taxable sales or leases, perform taxable services in Minnesota, withhold …
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Minnesota Homeowner’s Property Tax Refund Program
What is the property tax refund program? The homeowner’s property tax refund program (sometimes called the “circuit breaker” or the PTR) is a state-paid refund …
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Tax and Non-Tax Considerations when Starting a Minnesota Business
Choosing the Form of Business Organization: Tax and Non-Tax Considerations Introduction One of the fundamental initial decisions a new business owner faces is …