Many people who open a small business don’t think about hiring a business tax attorney. You may think you don’t need one or that you just need an accountant during tax season, but hiring a business tax attorney is one of the wisest things you can do for yourself and your business. A small business tax attorney who is with you every step of the way, from business creation and beyond, can help you with the countless forms and required documents needed for legal incorporation. An attorney can also help you trademark your name or protect your newly created business assets, plus handle your lease negotiation agreement.
There is no such thing as a legal document one-stop shop for opening a small business. Not all small businesses need the same forms or documents; each one is different, based on its respective service or product and the founder’s goals.
Working with an experienced tax group is a wise choice if you are starting a small business or want to grow the one you have. This guide will walk you through all the benefits of hiring a small-business tax attorney and frequently asked questions about doing so.
What Do Small-Business Tax Lawyers Do?
A tax lawyer helps clients with tax planning and tax representation. One of the most challenging parts of being a small-business owner is defending themselves against tax-related litigation, which could often be avoided if they would use tax lawyers from the start. Here are a few things to keep in mind:
Why Small Businesses Need a Good Tax Lawyer
Small companies set up their taxes according to their business structure. They must understand what type of taxes they will need to pay to avoid potential tax issues and when they need to pay their business taxes under the law, which can vary based on the type of business entity. They also must be aware of how much they will need to pay each year.
Their obligations will vary based on what type of business structure is created, including:
Some business owners must pay quarterly taxes, for example, and some have to pay an extra corporate tax, which is covered more in the next section. A business tax lawyer understands which is which and can advise you on what entity type is best and sift through all your requirements.
Business Structure Tax Obligations
Small-business taxes are difficult to understand from just reading about them on paper. Most businesses would be wise never to try to figure out their tax obligations without a good tax lawyer by their side. If you pay the wrong amount or pay at the wrong time, you can end up in an IRS hole with tax issues such as significant penalties and fees.
Your small-business taxes in payroll, federal, or state obligations depend on the business’s structure. Here are the basics about how the different structures are taxed:
A sole proprietorship is owned and operated by one person. The business is not separate from the individual, and all income is reported on their personal tax return. They have to pay self-employment tax but not business tax.
Corporations require you to pay taxes on profits after your expenses are deducted. This includes payroll considerations for your employees. You need to pay your personal taxes, including FICA, all year long if you pay yourself. Entities that decide to convert from a C corporation to an S corporation become pass-through businesses but retain some benefits of running a corporation.
General Business Services Provided by Tax Attorneys
An owner of a new or growing business will have an unending list of job tasks to create and update on a day-to-day basis. Tax attorneys help businesses with a range of these tasks and related issues that may come up during the process. They stay up to date on new IRS regulations and changes to existing laws to help you create your plan.
A business tax lawyer can help if a company needs something researched discreetly. They assist clients in establishing and growing their business so there is no stress or anxiety when Tax Day rolls around. Ensure your small business is well insulated from tax issues, surprises, or tax litigation. Get back more of your time to improve your business and stay competitive.
Communicating With the IRS
IRS agents may be the last people you want to talk to, but you will need to stay in touch with them throughout the process of tax repayment. This is a crucial part of normal business operations. Never ignore the IRS, because things can get ugly fast if an agent feels that you’re attempting to avoid speaking with them or repaying your debt. A few other facts to know:
FAQs About Business Tax Lawyers
Small-business owners have built their companies from the ground up. A top priority should be protecting that business from any tax-related issue so it can continue to grow. Hiring a tax attorney is a good idea for that reason alone.
You may still have questions about other benefits and next steps. Here are a few commonly asked questions about working with a business tax attorney:
What Kinds of Taxes Do Attorneys Help With?
Can a Business Attorney Help With Deductions?
Small-business attorneys help clients by identifying credits and deductions they may not be aware of. This is often how attorneys can help you minimize the amount of taxes you have to pay each year. You also must be sure you are only claiming tax breaks that apply to you.
When Should I Hire a Business Tax Lawyer?
What Kind of Experience Should My Attorney Have?
How Are Business Lawyers and Tax Lawyers Different?
How Do Business Tax Attorneys Help With an IRS Issue?
Where Do I Get Help With Tax Debt?
Tax issues have a significant impact on the success of any small business. That is why you should consider working with a tax attorney as soon as you start to build your business.
You will have all the tools you need to stay on top of taxes each year and avoid issues with the IRS. Always make sure you find a tax attorney who you feel comfortable working with and who has experience handling your specific problem.
Contact a Tax Professional With Business Tax Questions
Our experienced tax attorneys stay busy with the day-to-day tasks that would otherwise be bogging down our business clients. We may be involved on any given day in analyzing taxpayer invoices, summary sheets, and bank statements for our clients. Sometimes we arrange and review oral statements. Our group spends significant time researching relevant tax laws and authoritative sources, and negotiates with the IRS for our business owners as well as deals with our business owner’s estate planning, tax planning, new partnership agreements, transactional taxes, and ongoing IRS tax issues.
Silver Tax Group is an esteemed business tax group that offers you a mapped strategy for your business tax planning and corporate structure needs. We provide this service for our clients along with various other practice areas. Hiring us allows you to concentrate on what you have waited for your whole life: setting up your business for long-term success. Reach out to Silver Tax Group with questions about small-business taxes. We are here to guide you through these complex issues, whatever your problem may be.