Running a business can be pretty overwhelming and complicated. There’s a lot to handle, from keeping track of inventory and employee hours to marketing and sales. And on top of that, you have to ensure you’re staying compliant with state and federal tax laws.
Every business must pay taxes, and if you don’t do it correctly, you could face hefty penalties. That’s where a tax lawyer comes in. A tax lawyer is someone who specializes in tax law and can help you make sure you are complying with all of the applicable laws. You must need a busines lawyer for small business.
This post discusses seven reasons a tax attorney is an essential asset for your small business. Read on to find out everything you need to know.
1. Ensure You’re Filing Your Business Taxes Correctly
One of the essential things a tax lawyer can do is help you ensure that you’re filing your taxes correctly. They can review. Prepare and file your tax returns, ensuring everything is done correctly and promptly.
They can also help you if you’re being audited by the IRS. If you’re facing an audit, it’s essential to have someone on your side who knows the ins and outs of the tax code and can represent you in front of the IRS.
2. They Can Help You Lower Your Tax Liability
In addition to making sure you’re filing your taxes correctly, a tax lawyer can also help you lower your overall tax liability.
They can do this by taking advantage of deductions and credits that you may not be aware of. They can also help you structure your business in a way that will minimize your taxes.
For example, if you’re a sole proprietor, you may want to consider incorporating your business. This can provide you with some significant tax benefits. A tax lawyer can advise you on whether or not incorporation is right for your business and help you with the process.
3. A Tax Lawyer Can Help You Choose the Right Business Structure
When starting a business, one of the first decisions you have to make is what legal structure to choose for your company. There are several different options, and the one you choose will have significant implications for how your business is taxed.
A tax lawyer can help you choose the right business structure for your company. They can advise you on the pros and cons of each option and help you choose the one that will minimize your taxes and provide the most liability protection.
4. They Can Help You with Employment Taxes
You’re responsible for withholding and paying employment taxes if you have employees. These include Social Security and Medicare taxes, as well as federal and state unemployment taxes.
Your small business can be significantly affected if you fail to pay these taxes and can even be subject to criminal penalties. That is why you must ensure that you remain on top of the schedule when paying these taxes.
A tax lawyer can help you with all aspects of employment taxes, including ensuring that you’re withholding the correct amount from your employees’ paychecks and filing the necessary forms.
5. They Can Help You Deal with Sales Taxes
If your business sells products or services, you’re likely required to collect and pay sales taxes. The rules surrounding sales tax can be pretty complicated, and it’s easy to make a mistake.
You could be subject to interest and penalties if you fail to collect or pay the correct sales tax amount. A tax lawyer can help you ensure that you’re complying with all of the applicable laws and can help you resolve any issues that may arise.
6. They Can Help You Resolve Tax Disputes
If you have a disagreement with the IRS or your state tax agency, a tax lawyer can help you resolve the issue. They can represent you in an audit or appeal and negotiate on your behalf to reach a favorable resolution.
Remember that you can disagree with the IRS without going to court. In many cases, a tax lawyer can help you reach an agreement with the tax agency that will save you time and money.
7. They Can Help You Plan for the Future
A tax lawyer can also help you plan for the future. They can help you choose the right business structure for your company and advise you on the best way to minimize your taxes. They can also help you create a retirement plan that will minimize your taxes and provide you with the most benefits.
You need to have these plans in place to ensure that you can protect your assets and minimize your tax liability. A tax lawyer can help you create a comprehensive plan that will do just that.
Hiring a tax lawyer is an important decision. Make sure you choose someone with experience and who you feel comfortable working with. Ask for referrals from trusted sources, and get a free consultation before hiring anyone.
The right tax lawyer can save you a lot of money and help you avoid problems down the road. Don’t hesitate to seek their help when starting or growing your small business.