Published on: August 13, 2019 Last modified: December 15, 2020

Why You Need a Small Business Tax Attorney

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    Many people who open up a small business don’t think about hiring a business tax attorney. They don’t think they need one. But hiring a business tax attorney is one of the smartest things they can do for themselves and their business.

    A business tax attorney who is with you every step of the way when you open your business has untold benefits. Some of those benefits include your attorney helping you with the countless forms and required documents needed for legal incorporation.

    Sometimes a business tax attorney can help you trademark your name or protect your newly created business assets. Many times, a business tax attorney handles your lease negotiation agreement.

    There is no such thing as a legal document one-stop-shop for opening up a small business. This is true because not all small businesses need the same forms or documents. Each small business is different through their respective service or product.

    We want to give you some information about what we do for our clients who are starting small businesses. It might be worth your while to work with an experienced tax group if you are starting a small business or want to grow the one you have.

    business tax attorney Small Business Tax Lawyers

    In its most basic form and definition, a tax lawyer helps plan and file taxes for their clients. One of the most challenging parts of being a tax lawyer is when we need to defend our clients in tax-related litigation.

    It has been said if small business owners would use tax lawyers in the beginning, there may not be such a need to defend them in tax-related litigation at the end. Small business owners have a lot on their mind when they are opening up their business. 

    Small business owners want to concentrate on making their business dream come true. Most of the time they are not knowledgeable in bookkeeping and tax obligations.

    What’s more, bookkeeping and taxes are not something business owners can learn as they go along. Because the IRS does understand those two areas. Believe us when we say they will be checking on your accounts and taxes as soon as they can.

    It is recommended you have a tax lawyer helping you start your small business. One of the biggest reasons cited for small businesses needing a good tax lawyer (or tax group) is for deciding what taxes the small business will owe.

    Small Business Need for a Good Tax Lawyer

    Small businesses set up their taxes from their business structure. It is important that small business owners understand what type of taxes they will need to pay to avoid potential tax issues. Small business owners also need to understand when they need to pay their business taxes in accordance with tax law.

    Most of all small business owners need to be aware of how much they need to pay in taxes. 

    To determine the answer to any of those questions small business owners need to decide if they want to be;

    • Limited liability company (LLC)
    • Sole proprietorship
    • Partnership
    • Corporation – of which there are five sub-categories which are;
      • C corporation
      • S corporation
      • B corporation
      • Closed corporation
      • Nonprofit corporation
    • Cooperative

    There is a reason the small business structure is important and by default having a good tax lawyer by your side is a must. It is because each business structure comes with different tax obligations.

    Small Business Tax Obligations

    Small business tax obligations are difficult to understand reading about them on paper. Don’t try to figure out your businesses tax obligations in practice without a good tax lawyer by your side.

    If you pay the wrong amount or pay at the wrong time you can end up in an IRS hole which arises tax issues such as penalties and fees attached to it most of the time.

    Small business taxes in payroll, federal or state obligations depends on the structure of the business and what the tax is for. This is why having an experienced tax lawyer with you from the beginning eases your fear of doing the wrong thing.

    You don’t want to be a part of bringing your business dream to a premature end because you didn’t do your legal or tax work correctly from the get-go.

    We know how to set up your small business from the consultation we have with all our new clients.

    Different Business Structures

    For instance, if you set up your business as an LLC all your profit is considered personal income. It is taxed the same way at the end of the year.

    If you set up your business as a partnership you can also claim your share of the profits as personal income. We may ask you to consider setting up a quarterly advanced tax payment system to avoid future tax issues.

    This will help you avoid having to pay a large tax debt at the end of the year. If you set up your business as a corporation, you will be paying taxes on profits after your expenses are deducted.

    This includes payroll for your employees. If you pay yourself, you need to pay your own personal taxes including FICA all year long.

    small business tax lawyer The Benefits of Having a Business Tax Attorney on Your Side

    We are a premium business tax group because we understand the small business owner’s tax burden. We know how to lessen their tax burden with the appropriate legal structure for their small business.

    But we cannot do any of that without the small business owner reaching out to us to help them from the beginning of owning their own small business dream.

    There is no rule book which small business owners can use to get around and understand the legal and tax structure. That’s why it is so important to have a business tax attorney at your side when your business is created or grows. 

    You need the security of having the best legal representation not only to help guide you while you are setting up your business. But also in providing the business framework which helps you schedule your tax reports, payments, and any special filings needed.

    Who else can provide the expertise you need in the complicated and ever-changing world of taxes? Business tax attorneys can explain any legal question you have. They will help you understand the nuances of tax law.

    Most importantly, a business tax attorney can represent you legally for any tax issues that may arise.

    business expertise Tax Attorneys & Business Expertise

    We are a local tax attorney practice which offers the tax and small business expertise you need.

    As a new business owner you will be dealing with setting up some following tasks;

    • Cash flow management
    • Line item business budget with a contingency or unforeseen expense line item also listed
    • Payroll expenses, management, and system
    • Reconciliation of books
    • 1099’s
    • Choose your vendors
    • Financial analysis 
    • Taxes 
    • Grow your business and more

    There is no limit of job tasks a new or growing business owner will need to set-up and finalize on a day-to-day basis.

    The Duties and Tasks of a Tax Attorney

    We help businesses do everything with their new and growing business except prepare their taxes. We leave all that to the CPA and tax accountants. But we stay up to date on new IRS regulations as well as changes to existing tax law.

    If a business needs something researched in a discrete manner, we are on point. We help our clients establish and grow their business so there is no stress or anxiety when tax day rolls around.

    We make sure our small businesses are well-insulated from tax issues, surprises, or tax litigation. This leaves our small business owners with nothing but time and effort they put into making their business work and be competitive.

    As one of the best and most experienced tax groups in Houston and Texas, we stay busy with our day-to-day tasks for our business clients.

    On any given day we can be involved in analyzing taxpayer invoices, summary sheets and bank statements for our clients. Sometimes we arrange and review oral statements. Our tax group spends significant time researching relevant authority and writing.

    We negotiate with the IRS for our business owners. Sometimes we also deal with our business owner’s estate planning, tax planning, new partnership agreements, transactional taxes, and ongoing IRS tax issues in regards to tax law.

    There is not a day that goes by we are not dedicated and committed to giving our small business owners all they need from our many professional tax and business strategy services in regards to tax law.

    Communication With The IRS

    Although IRS agents may be the last people you want to talk to, you also need to stay in touch with them throughout the process of repayment. This is crucial to normal business operations.

    Whatever you do, don’t ignore the IRS. If an agent feels that you’re attempting to avoid speaking with them or repaying your debt, things will get ugly very quickly.

    Penalties and interest charges prove just the beginning. If you’re not careful, you could end up losing your whole business.

    What’s more, penalties and interest payments don’t remain fixed. The longer you delay paying, the higher they’ll escalate and the more tax issues you will have on your hands. Most tax debts compound at a rate of 14 percent or more.

    The IRS also has a whole arsenal available for collecting back taxes. They can seize just about anything in your possession. This includes your bank account, your wages, and even your home.

    Moreover, please don’t assume that they need judgment or a court order before proceedings begin. They can grab your property or close your business at a moment’s notice.

    Beyond mailing a demand letter, you may receive no other warning. By seizing your assets and padlocking your door, they can effectively close your business in short order.

    What do we mean by assets? Everything from desks to inventory and even business accounts.

    small business tax lawyer work Conquer All Your Small Business Needs

    Your small business benefits from using a business tax attorney in more ways than one. We provide so many additional benefits besides setting up your business tax structure and obligations. 

    We deal with your real estate needs and any contractual lease agreements you want to sign. We make sure you are protected when you are providing intellectual services. If you need to file a patent or trademark we can get you the help you need.

    When you have a small business need in negotiating a partnership agreement we make sure you receive good terms. But we cannot do any of this unless you reach out to us and tell us what your small business needs.

    We are an esteemed business tax group who offers you a mapped strategy for your tax planning and corporate structure needs. We offer this service to our clients along with various other practice areas. This allows you to concentrate on what you have waited for your whole life. Making your business a success.

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