Running your own business isn’t easy. It can be challenging and frustrating for a lot of reasons. With everything that you already have on your plate as a small business owner, making it through tax season is just one more challenge that you have to overcome. Luckily you don’t have to go through it alone. A tax attorney can help you through all of the challenges that you might face as a small business owner when dealing with the IRS.

Do You Own Your Business?

Image from Flickr by Robert Couse-Baker

Not every business needs a tax attorney from the outset, but it can be helpful, especially if you have partners or investors in your company. When more than one individual has contributed capital to start the business, it is particularly important that the tax structure is planned so that all owners are getting the maximum tax benefit possible. Many business owners avoid hiring a tax attorney due to the cost. But tax attorneys can save you and your business quite a bit of money in the long run. This should be taken into consideration when calculating the cost of hiring a tax attorney. 

A good tax lawyer can help you set up your business so that everyone’s interests are aligned. Also, if you’re looking to pass your company on to your children or grandchildren, a tax lawyer can help you manage assets so that your loved ones don’t get hit with a hefty and unnecessary tax liability.

Are You Starting a Business?

Depending on the type of business you are trying to start, there may be significant tax ramifications that you need to consider. Sole proprietors, for example, are taxed differently than registered companies, which are taxed differently from corporations, and so forth.

If you are looking to start a business, it may be valuable to enlist the help of a tax attorney who can help you understand the different tax requirements for your particular situation. A good tax attorney should be able to help you to avoid high and unnecessary tax liability by setting up your company in a way that makes the most sense financially. You’ll want to consult a tax attorney before starting your business so that you can make the best decisions to set yourself up for success.

Do You Owe the IRS?

Managing tax debt is the most obvious reason you might need a tax attorney. Carrying tax debt can carry serious repercussions like liens and bank levies, but a seasoned tax attorney can help you manage the ins and outs of the IRS to prevent such action from being taken against you.

The IRS has a number of options to help taxpayers settle their debt, including installment payment plans and penalty reduction. If you are struggling to pay your tax liability, it’s a good idea to enlist professional help to try to get a better outcome. A tax attorney may even be able to negotiate your tax liability so that you can settle for less than you owe, significantly reducing the overall burden of your tax debt.

Given the cost value of hiring a tax accountant to help you organize your business, you may find that it is the best decision you can make for you and your company.