Don't Start Your Small Business Without A Tax Attorney
Are you starting a new small business? You might be surprised to hear that you should consult a tax attorney as soon as possible. You put a lot of money into your business, and you risk losing it all if you don't understand tax laws.
What's Your Type?
When your business becomes official, you will have to determine exactly what category your business falls into. Here are a few.
- An LLC, or Limited Liability Company, is a category that limits the business owners' responsibility for debt and loss.
- A Sole Proprietor is when one person runs a business alone.
- A Corporation involves a group of people owning a business together and often involves shares and shareholders
- A Partnership involves two or more people who come together to own a business
Your tax responsibilities change dramatically depending on the type of business structure you have chosen. A tax attorney will be able to guide you through the benefits and pitfalls of each situation and advise you on the appropriate choice for you. That attorney will also be able to educate you on tax laws that apply to your situation.
Have a Partner?
Many people start businesses with a friend or family member, and sometimes relationships are destroyed by small businesses. You are going to need a contract detailing each partner's responsibilities when it comes to finances and taxes. Help protect your good relationship with the person you are going into business with by hiring a tax lawyer to help you with this task.
If you start your business knowing how the responsibilities are divided, you will have a much better chance of maintaining a good relationship with your partner.
Depending on how you set up your business, your home and other property could be on the line when it comes to debt. If your business goes under, is your home protected? Will you lose everything?
A tax attorney can help you understand how the business changes your personal taxes and whether your personal property is at risk.
If your business hires employees, you will need more tax advise than businesses without employees need. When you have people on your payroll, you will be responsible for withholding taxes and filing the proper paperwork. Your tax lawyer can tell you the laws you must follow and help you understand how to organize tax issues regarding payroll.
Every business owner would benefit by consulting a tax attorney. Tax laws can be hard to understand and change all the time. An attorney can help you know your responsibilities when it comes to business taxes. Contact a law office, such as Townsend & Jones LLP, for more information.