How can an attorney help a business owner with tax planning?
Regardless of the size and scope of a business, certain events and transactions will have a profound impact on taxes. Financial transactions such as property exchanges, capital contributions, cashing out of a partner, and restructuring the business can all affect the tax liability for business owners.
Another situation where tax planning will be essential is regarding the entity’s structure. For example, a partnership or pass-through entity will have dramatically different tax rules than an “S” corporation. Where corporations are considered separate entities for tax purposes, partnerships pass tax liability through to the partners.
Hiring a tax planner means one is enlisting a professional to help them save money; someone who knows how to apply the advantages of the tax code to their benefit. A good tax lawyer will review a business’s financial statements to find and apply tax law advantages that will reduce their tax liabilities. Simultaneously, a tax planner will proactively forecast future tax liabilities that may come up throughout the year and customize a plan that will reduce those liabilities as much as possible.
Here are some other situations where a business tax planning attorney may be needed:
- Liquidating stocks or selling unsold inventory
- Donating to charitable organizations
- Assessing capital investments and expenditures
- Changing an organization’s infrastructure
- Doing business in foreign countries
- Non-recognition of gain or loss with an IRC Section 1031 transaction
- Business mergers and acquisitions
Utilizing the tax code in our clients’ favor
The federal government is always passing new regulations and tax rules, allowing for an ever-changing landscape for tax planners. A professional tax planning advisor who understands the code can utilize these “loopholes” to their clients’ advantage, thereby minimizing the tax burdens for their business.
Even though the sheer size and complex verbiage of the tax code can be intimidating, the rules and regulations within the U.S. Tax Code can be used to a business owner’s advantage. Working with a tax planner who knows how to utilize the tax code can be a tremendous advantage and wealth-building tool for the entrepreneur.
Business owners who want to learn more about how a tax attorney can help their business or startup should consult with the attorneys at Dilendorf Law Firm. In addition to planning, we will set up the appropriate business framework, explain complicated business tax laws, and help prepare required tax reports, payments, and IRS filings.
Tax Planning for Business and Startups
Dilendorf Law Firm
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Tax planning is something that is easy to overlook when starting a business but ignoring this process can be very costly. The tax specialist attorneys at Dilendorf Law Firm have the knowledge and expertise to guide entrepreneurs by helping them avoid the tax issues most common to their business.