As a Minnesota business owner, you will need to comply with tax laws in Minnesota, and understand how they affect your company. State tax laws not only vary by industry, they also frequently change.

Tax laws determine Minnesota income tax, sales tax and property tax. Because understanding and facilitating tax issues can take up valuable time, business owners often choose to commission tax law legal professionals in Minnesota to take care of the legal side of their business. Choosing to do so yourself could free you to focus your energy on managing your company. It's important to remember the following about Minnesota taxation laws:

1. There are many deductions in taxation law. A complete understanding of Minnesota state tax law could save your business substantial amounts of money.

2. Minnesota tax law works in conjunction with federal tax law, possibly local tax law, and sometimes municipal tax law. Ask your CPA when one overrides the other in your situation.

3. Partnering with tax law legal professionals in Minnesota can save your business from unnecessary fines and audits.

Action Steps
The best contacts and resources to help you get it done

Learn about Minnesota business tax law and file your own returns

If you are a small business with minimum resources but some time to devote to the task, you can file your own taxes. There are many online resources available to help you understand the specific state laws.

I recommend: The Minnesota Department of Revenue has online tax forms available for business owners to download. You can also make use of their e-file services. Federation of Tax Administrators can lead you to other state tax documents, should you need them. Also consider software programs like Quicken to help organize your expenses and TurboTax to file taxes in your state.

Partner with an accountant or CPA to help your business comply with tax laws in Minnesota

Some situations demand that you outsource your taxes to a professional. This ensures that your business follows state requirements, which can help you avoid the inconvenience of penalties and audits. Whether it's part-time or full, basic accounting services or complex, consider hiring a financial expert. You could partner with an accountant who performs general accounting services, or a CPA who can handle complex accounting needs.

I recommend: Phyllis M. Burdette, CPA is a Minnesota-based accounting firm that offers financial planning and tax preparation services for small business owners. Hara Accounting has offices in New York and as well as Minneapolis. Both firms provide variety of tax tools, financial calculators and forms. Mayer Hoffman McCann, PC is a national CPA firm; you might consider them if you plan on expanding outside the state.

Consult with Minnesota tax attorneys when you need advice or representation

You may also select from Minnesota tax lawyers to partner with your financial team. Attorneys can not only ensure your business is in compliance with state tax laws, they can also provides tax counseling on a wide array of situations.

I recommend: Kennedy Law Offices, PA offers services and advice on many tax issues, including how to file documents to create an LLC, LLP, corporation or other business entity. Minneapolis-based Briggs and Morgan provides advice on mergers and acquisitions, partnership and joint venture arrangements, tax-exempt financing and tax credits.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  When you look for a professional to prepare your taxes, steer clear of CPAs or accountants who claim they can get you more deductions than their competitors. They're either lying to you, or willing to violate Minnesota tax laws; neither scenario is good.