A distinguished Twin Cities Law Practice
For over 25 years, Barbara A. Olson has been providing high quality legal services to businesses throughout the Twin City Metropolitan Area. With her experience and her LLM in Taxation ( an advanced legal degree which specializes in tax matters), she provides general business and tax services for small, mid-sized and large businesses. She focuses first on understanding her client’s business and concerns and then works with the client to craft an efficient and cost effective solution. She firmly believes that “doing it right” in the beginning saves the client time and money in the long term. She has a passion for helping small businesses and individuals succeed in their endeavors. She can be your trusted team member who helps you reduce legal risks so that you can concentrate on growing and running your business and growing your assets.
Case Study One
Joe and Tom, who are old friends, decide to open a restaurant business together. Joe has significant financial assets and Tom has none. Joe is willing to put in all the money needed for the startup and Tom is willing to provide the labor, but he needs to be paid. Joe is also willing to guarantee the bank loan. Joe wants to be compensated for the fact that he is putting his money and personal guarantee into the business, while Tom is getting a job.
Joe and Tom need to form a legal entity so that they are protected individually from the liabilities of the business. (That of course is not true for Joe with respect to the loan guarantee). They will also have to negotiate an agreement between the two partners dealing with how and when either partner can sell his interest, what happens upon death, bankruptcy and divorce of one of the partners, and what happens if they find they can’t work together- how can they unwind the business. They also need to negotiate how they will share profits and losses and other tax aspects of the business. Most business attorneys can help Joe and Tom the formation of a legal entity and a buy sell agreement or member control agreement. However, only a tax attorney can craft the tax relationship and language between the partners so that Joe is compensated for his capital infusion and loan guarantee, without an unfair impact on Tom. Barbara Olson can help clients with the formation and set of legal entities, but she can also help clients with the tax aspects of the formation and their ongoing businesses.
Case Study Two
Anita is a successful doctor, who is married to a successful surgeon, James. James handles all of the finances of the couple and is responsible for the preparation and filing of their joint income tax returns. He deals with the accountant, beings the returns home for Anita to sign, and then mails them. Anita opens a letter from the Minnesota Department of Revenue asking for the couple’s 2009 income tax return. She gives the letter to James, saying there must be some mistake. James says no, he hasn’t filed this return because he didn’t have the money to pay the taxes. After much investigation, it becomes clear that James has not filed federal or state income tax returns on a timely basis for over a decade. Anita is an employee and has an amount taken out of her salary to cover the taxes on her wages. James is in a partnership, so he was required to make estimated tax payments on his earning, but, he has not done so for years. Currently the tax, interest and penalties owed by the couple, according to the joint returns, some filed, some not, is approximately $3,000,000.
Barbara Olson, with her tax education and experience, can help Anita navigate through all of the decisions she will have to make with respect to payment or nonpayment of the $3,000,000. Barbara Olson has been very successful in the using the “innocent spouse” defense to alleviate the tax burden on spouses who did not incur the tax debt.