Running a business is more than just monitoring and ordering inventory, managing employees and finding ways to stay competitive in the marketplace. It also takes knowledge of accounting principles and a sound grasp of the U.S. Tax Code.
Indeed, one does not need to be both an accountant and a tax attorney, but when it comes to delegating duties regarding taxation and withholding, which is better to use? This is a paradox that small companies with limited resources may deal with. To that end, this post will provide some insight.
Planning and strategy – Generally speaking, an accountant would be helpful in answering questions about small business incorporation, including the potential tax implications given how a company is structured. An accountant can also help with strategies to reduce a company’s tax obligation. Saving money can help a business grow.
Litigation and defense – Conversely, an experienced tax attorney may be better suited to respond to challenges from the IRS regarding tax controversies. This can be especially important when a business is threatened by collection strategies such as liens and asset forfeiture actions. As we have noted in prior posts, past due taxes can mushroom into legal claims that can threaten the future of your business.
If you can’t decide which is best for your business, don’t despair. It is common for businesses to have both at different instances during the life of the company. Their collective knowledge and experience can be quite helpful. So why not have the best of both worlds?
The preceding is not legal advice.