Last year was a record year for small businesses. More than 5 million new business applications were filed in 2021, a 53% increase over 2019.
If you’re one of the new business owners, congratulations!
You know that you need to surround yourself with a lot of great professionals. You need an accountant, HR consultant, bookkeeper, business attorney, and more.
The one professional that gets overlooked is a tax lawyer. You might not think that you need one because you already have an accountant and bookkeeper.
There are a lot of benefits that a tax lawyer can bring that not many accountants and bookkeepers can do for your business.
Read on to discover why you need to hire a tax lawyer.
You Start a Business With the Right Legal Structure
Did you know that your legal structure can have huge implications for your taxes? You might check out Google University to learn about taxes and business structures, but you need professional advice.
That’s the expertise that a business tax lawyer can bring.
A lot of solopreneurs hear that they can save money on self-employment taxes if they elect to get taxed as an S-Corporation. That only makes sense if you’re earning enough money to handle the extra compliance costs.
A business attorney can advise you as to when you should become an S-Corporation. That move saves you thousands of dollars come tax time.
Represent You in Front of the IRS
Do you have the time and energy to deal with the IRS? The IRS doesn’t have the capacity to answer all calls, and the average wait time is about 30 minutes.
You can give a tax lawyer power of attorney to represent you and your business in front of the IRS. This takes the intimidation out of contacting and working with the IRS to resolve your tax issues.
Reduce the Amount of Risk in Running the Business
There are risks in running a business. There are outside forces like Mother Nature and the economy that can disrupt your business.
There are legal issues and liabilities that can disrupt your business, too.
A business tax lawyer may be able to advise you in other areas of business, such as contract law and intellectual property law. These are ways to ensure your business is protected from people trying to take advantage of your business.
Protect Your Business and Legal Rights
Federal and state tax authorities can make mistakes that affect your business. For instance, they may claim that they didn’t receive estimated tax payments or payroll tax payments.
They can also threaten to levy your bank accounts for back taxes. There are ways to help people protect their business, and the best tax lawyer can provide valuable advice.
Don’t Wait to Hire a Tax Lawyer
A tax lawyer is an important partner to have as you start and build your business. You’ll be able to limit the risks in running the business and protect your rights.
For more helpful tips for startups and entrepreneurs, check out the other articles on the blog today.