Business Law & Taxation

Davis Law Firm, P.A. provides advice on business formation, organization and taxation to potential and existing business owners and managers. When starting a business, we assist our clients in determining the type of business entity that best fits their needs, whether it is a partnership (such as limited partnership and limited liability partnership), limited liability company (LLC), corporation (such as C corporations and S corporations), or another type of business entity. An important aspect of owning and developing a business is the protection of the business’s assets and planning for its future. At Davis Law Firm, P.A., we assist our clients in forming the business in a way that provides the greatest amount of liability and asset protection on both a personal and a business level.

We also often draft confidentiality and non-compete agreements to protect our clients’ valuable or sensitive business information. Finally, our expertise in estate planning helps us develop a plan for business succession and continuation for our clients. We are able to integrate this plan with the personal estate plan of the business owner(s) and ensure that both the business and the family members of the owner are protected and provided for. Our business succession and continuation plans are drafted to minimize taxes and provide for a smooth transition.

At Davis Law Firm, P.A., we represent both family-owned businesses and commercial businesses. Family-owned businesses often present a unique set of challenges, especially during generational transfers. Many of our family business clients are concerned with developing a plan to transfer the business in a way that is fair to all family members, whether or not they are involved in the family business. We represent all types of family businesses and family farm corporations or partnerships.

In addition, Davis Law Firm, P.A. assists its clients with running a successful business by drafting corporate documents, such as bylaws, transfer restriction agreements, member control agreements and operating agreements; by documenting meetings and actions of the board of directors; and by advising our clients on shareholder rights.

The attorneys also provide assistance and advice on the negotiation and drafting of business contracts, purchase or sale and lease agreements, and independent contractor and employment agreements. As many small businesses cannot afford their own full time in-house attorney, we often serve as general counsel to small businesses to provide legal advice to our clients on a need basis.

Below are some helpful links for small business owners and managers:

• Minnesota Department of Revenue – Businesses
• Small Business Association
• Tax Identification Number – IRS
• Federal Employee Income Tax Withholdings

At Davis Law Firm, P.A., we are often asked to provide advice to our clients regarding minimization of tax liabilities both during life and after death. We assist our clients in developing estate and gifting plans to minimize income, estate and transfer taxes so that they can maximize the assets they are able to pass on to their heirs.

Each state treats transfer taxes differently. Many states impose an estate tax, which is paid by the deceased person’s estate, and/or a gift tax; others impose an inheritance tax, which is paid by the beneficiaries; and others allow an estate to transfer to the beneficiaries free of any estate or inheritance tax. Currently, Minnesota imposes both an estate tax and a tax on lifetime gifts, and the IRS requires payment of an estate tax. Recently, Minnesota has made significant changes to its estate and gift tax laws. Contact us if you have questions regarding the changes and how they may affect you.

When developing or reviewing estate plans, our attorneys draft the documents in order to provide for the client’s wishes as well as to minimize tax liability during the client’s life and after his or her death. When dealing with an estate which may be subject to state or federal estate taxes, we advise our clients on a variety of strategies to minimize taxes, such as gifting, disclaimer trusts, irrevocable trusts (including ILITs), charitable bequests, etc. We are experienced in utilizing the special deductions to the Minnesota estate tax available to small businesses and farmers to the greatest advantage. We also assist our clients in choosing which assets to transfer to each beneficiary and how to affect the transfer in a way that reduces the total gift, estate, capital gains and income taxes owed on the transfer.

We are also able to assist our clients by preparing both federal and state fiduciary income tax returns (which often must be filed by personal representatives within open probates and trustees during trust administrations), as well as estate, gift, corporate and individual tax returns.

If you need legal counsel in any aspect of business law, contact our office in Minnesota. We will provide the skilled, experienced counsel you seek. Call 507-424-6330 to schedule. Or, send us an email.