1099 Forms & Independent Contractors

Do you need to send 1099’s for payments made in 2017?

IRS Audit Warning

If you, individually, or your corporation, paid $600.00 or more to any one individual or required business (including LLC’s that are not taxed as a corporation) in 2017, you are REQUIRED to prepare a 1099 for each individual or business. (NOTE:  No 1099 is required if you pay a Corporation).

Please note that the Payee must receive their 1099 by January 31st, 2018 and the IRS needs to receive their copy by January 31st, 2018.

PLEASE NOTE:  The IRS will be imposing a penalty if you fail to provide the recipient and the IRS copies of the 1099’s.  The penalty is $250 for each IRS and payee copy not filed or furnished to the recipient, respectively.  For example, if you were required to do 5 – 1099’s and you do not do them, it would result in a penalty of $2500.

If you are required to issue 1099’s you have two options.  Please choose one.

Option #1:  Prepare these yourself by the due dates stated.

You can get the forms from the IRS directly by calling the IRS or purchasing them at your local office supply store.

Option #2:  Business by Design will prepare these forms for a fee.

Our fee is $100.00 for two (2) 1099 forms and $25.00 for each additional form 1099.  For example:  we prepare 5- 1099’s-the cost is $175.  These fees include preparing the 1099’s and the applicable 1096 form.  We will not prepare these returns without a payment authorization on file.  No charges will be processed until the 1099’s are completed and reviewed by you.

Click for Payment Authorization:  Payment Authorization Form

Click for 1099 request form (FILL-IN):  External 1099 Request

      1. Who the Payer is (you or corporation name)
      2. Who the Payee is (the name of the person or business that was paid)
      3. Address of the Payee.
      4. Social Security Number of the Payee.
      5. Amount Payee was paid in 2015.
      6. What is payment for:  services, rent, mortgage interest, interest, etc.

FOR 2017: All of your 1099 information will need to be uploaded to us using the Secure Exchange on myBBDPass by January 19th, 2018.  Any handwritten information must be legible.  To view an example of what the Secure Exchange folder looks like, click here:  myBBDPass Secure Exchange Instructions

If you would like to download a complete copy of this information click here: myBBD 1099 Reporting Information 2017

To log into your myBBDPass Account, click heremyBBDPassLogin

PLEASE BE CERTAIN YOUR INFORMATION IS CORRECT:  There is a $200.00 fee for 1099’s that need to be corrected and reissued because of erroneous information received.  Therefore, it is important you send us the correct and complete information.

If you have any other questions, you can contact Karin Horkey at Business By Design (karinhorkey@mybbd.com) or 952-392-1210.


Sales & Use Tax DUE February 5th, 2018

Sales & Use Tax ImageREMEMBER:  You need to file your sales and use tax return by February 5th, 2018.

If you do not regularly file a sales tax return, you need to file a “Sales & Use Tax” return by February 5th, 2018.  Click here to file: https://www.mndor.state.mn.us/tp/eservices

“. . . but I do not collect sales tax or have taxable services!” 

Many people think this; however you must file a return for USE TAX as well as SALES TAX. USE TAX is the sales tax you should have paid on purchases you may have bought over the internet or in other situations where you did not pay the sales tax at the time of purchase.  This sales tax must be paid in voluntarily and must be paid online.

This information is being provided to you as a guide. Business By Design does not have your user name or password and we are not able to reset forgotten passwords. Specific questions regarding Sales and Use Tax and e-services should be directed to the MN Department of Revenue at 651-282-5225.

Business By Design can not file this return for you!  For more information, click below to download details about filing this return and filing requirements:

Click here for everything you need to know to file your Sales & Use Tax Return:  myBBD Sales & Use Tax Reporting Information

For step by step instructions on how to file watch the video below:    

For information on what is or is not taxable, please refer to the MN Fact Sheets here:  http://www.revenue.state.mn.us/businesses/sut/Pages/fact_sheets.aspx

For more information on MN Use Tax please refer to the MN Fact Sheet here:  http://www.revenue.state.mn.us/businesses/sut/factsheets/FS146.pdf

For more information, you can go to the MN Department of Revenue Website at:  http://www.revenue.state.mn.us/Pages/default.aspx

LLC updates effective January 1st, 2018

Starting on January 1st, 2018, all Minnesota LLC’s filed prior to August 1st, 2015 will have some new changes.  This post is meant to inform you about this upcoming change.  This effects all LLC’s filed in Minnesota prior to August 1st, 2015, under the prior LLC Act.


Everything you need to know is listed here:  

2018 LLC Update

NOTE:  Business by Design cannot provide you with any legal advice on this matter. However, BBD has made an arrangement with a law firm (Virtus Law) to help you with this process if you choose to do so.

If you have any questions or concerns, please contact one of our BBD staff listed below.

2017 Tax Quiz – How well do you know your business partner?

Do you know your business partner… the IRS?

It is that time of the year again… time for some year end planning with your business and taxes.   Business by Design wants to help you get in the right mindset for the end of year.  We have prepared some information for you to consider as you enter the final weeks of 2017.

Click on the link below for a copy of the material Paul Miller presented at your Edina Realty event.

Click HERE to view the presentation: 

 2017 Tax Quiz – Edina Realty

SIMPLE IRA Set-Up – DEADLINE October 1st.

Deadline is October 1st.

simple-iraIf you are looking to set up a SIMPLE IRA for your business in 2017, the deadline to do so is October 1st.  All new plans must be set up by October 1st to be used and funded in 2017.   Using a SIMPLE IRA will allow you to make both Employee (EE) contributions, along with Employer (ER) contributions.

Contribution Limits:

  • Employee contributions can be up to $12,500 for 2017.  The employer contributions may vary slightly, but would generally be about 3% of wages to all eligible employees.

Deadline to fund the plan.

  • Employee contributions – must be withheld from pay by December 31st and remitted to the investment firm as soon as reasonably possible
  • Employer contribution – must be made by the tax return due date, including extensions

questionsIf you have further questions about the SIMPLE IRA plan set up or options, please reach out to your financial advisor for information on this plan.  

Business by Design does not set up these plans or provide financial advice, however, we do want to be sure you are aware of the deadline.