Entrepreneurs rely on a team of third-party professionals when they operate their businesses. And while creating or building a business, they go through an important checklist. Create a business plan? Check. Line up investors? Check. Secure office space? Check. Business structure? Check. A tax audit? Um … now what do I do?
Whether you created a start-up business or are a business owner with an established company, you will need the occasional advice of a tax attorney. A tax attorney helps you navigate through legal maelstroms within the business world. Some of them can be nerve-wracking.
Business formation, tax deductions and global situations
Here are some ways in which a tax attorney is invaluable:
- When starting a business, a tax attorney can explain the options available in creating the best entity for your company. Options may include incorporating, a limited liability companies, S-corps and nonprofits to name a few. You need insight regarding the business structure and tax ramifications related to each. A tax attorney provides guidance on this issue as well as non-tax matters that you had not considered.
- Help you understand tax deductions available to your business. The list includes start-up costs, home office expenses as well as supplies for people with a dedicated business space in their homes, mileage and vehicle expenses for the self-employed, costs associated with cellphone usage.
- Provide insight related to employee taxes in making quarterly tax payments.
- When involved in international business situations with overseas customers and supply chain partners, it is crucial to understand tax treatment, contracts and an assortment of legal matters. A tax attorney’s guidance is essential here as well.
- Help you when considering selling your business. A business sale entails selling many assets, which typically are considered capital assets. You likely must pay capital gains taxes on each asset.
- If you face an audit from the IRS as well as criminal charges, a tax attorney serves as a crucial ally who minimizes any potential damage to your finances and reputation.
A thorough and knowledgeable tax attorney guides you into making the right and practical decisions that prove advantageous to you company.