A Guide To STARTING A BUSINESS IN MINNESOTA 42nd Ed 2024

BUSINESS TAXES

Common areas of small business tax liability include federal and state income taxes, state sales and use tax, FICA (Federal Insurance Contributions Act) (Social Security and Medicare) tax, FUTA (Federal Unemployment Tax Act), state unemployment tax, and tax withholding. In addition, businesses may be liable for less commonly applicable taxes such as taxes on the sale of fuel, alcohol products and cigarette and tobacco products, and the hazardous waste generator tax. These taxes are discussed in more detail later in this section. Note : Businesses operating in multiple jurisdictions, whether cities, states, or counties, need to be concerned about the taxes imposed by each of those jurisdictions, as well as the impact on the tax imposed by their home jurisdiction. This also applies equally to businesses using the Internet to sell goods or services. SOURCES OF INFORMATION Business owners, who wish to learn more about state taxation can attend free workshops and seminars offered throughout the state. These workshops are geared towards new businesses, new employers, and others interested in an introduction to business tax responsibilities. Agency-Sponsored Business Education Workshops/Seminars The Minnesota Department of Revenue offers classes, workshops and training events to help business owners understand their tax obligations and how to meet them. Classroom Training: Basic Sales and Use Tax Classes; Lawful Gambling Education Seminars; MinnesotaCare Educational; Seminars; Partnership Tax and S Corporation Tax Basics Class; Withholding Tax Education Seminars. More information and schedules are available at Business Tax Education or call 651-282-5225 or 800-657-3605. Webinars: Minnesota Withholding Tax Employer Responsibilities. More information is available at Withholding Education and Outreach. The Minnesota Unemployment Insurance Program and the Minnesota Dept. of Revenue have partnered to form the Minnesota Business Tax Education Partnership. Free educational seminars on state employment taxes are offered around the State of Minnesota to assist businesses. Topics include: • Worker status: who is an employee or independent contractor?

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