How income and inheritance tax laws affect you
Both federal tax law and state tax law apply to your business taxes, but the amount you pay can vary widely based on the type of business you run, the number of employees and the nature of your assets. It is crucial that you not only keep up with the taxes that you need to pay, but also pay them on time—steep IRS penalties await those companies that file late quarterly taxes. Many small business owners can easily become overwhelmed with this new tax system that incorporates so many aspects of the company, but some taxation law advice can help to sort out your corporate responsibilities and seize any opportunity to save money.
Tax Law for Business
When it comes to income tax, your business type determines the amount you must pay. For example, a partnership is taxed differently than a corporation. Moreover, business types such as limited liability companies can elect to be taxed in a few different ways. Do you suspect that you could be paying less tax? Do you know how to avoid double taxation? Income tax law can be more complicated than it appears at first, but tax attorneys can help clarify the best steps for your business.
Any company that employs a workforce needs to sort out employment and payroll taxes based on the status of each employee and independent contractor. To begin, you won't be able to avoid unemployment taxes, and the amount you must pay is based on the type of business, employee wages and employee turnover. There are also withholding tax laws and Medicare taxes to consider regardless of the specific business you run. On the other hand, there are less obvious tax laws—and tax breaks—that may apply to your particular business and you may be able to save on the amount of taxes you pay each year with some investigation into the finer points of business tax laws.
How Tax Lawyer Can Help
Tax issues can arise through specific transfers or poor tax procedures. For instance, businesses that are inherited through generations are subject to an inheritance tax law that allows the government to collect money from the transaction if the assets reach a certain value. Alternatively, tax law can get gritty when a business does not keep up with their monthly, quarterly or annual tax payments and may lead you to seek tax resolution services or even tax defense.
A lawyer will be essential for complicated appeals and investigations of the myriad tax laws that apply to you, but they can also be helpful from the very start. Beginning with the formulation of a tax plan to determine the best tax strategy for future years, a business tax lawyer can ensure that your tax practices are sound and efficient.