Small business owners have a responsibility to educate themselves about tax strategies and potential tax pitfalls. Engaging the services of an experienced tax strategy lawyer sooner rather than later increases the chances of being able to develop a comprehensive strategy that accomplishes your goals.
Entity Selection Issues for Small Business Owners
There are pitfalls of each type of entity that you could use to form your business. For example, sole proprietorship affords you no protection between creditors and yourself. However, a one-member limited liability LLC is not recognized by the IRS and is treated much the same way as sole proprietorships, whereas two or more member LLCs are treated as partnerships. For corporations, which you can form as an S corp or a C corp, it is necessary to file separate returns and maintain separate bank accounts.
Why Would Small Business Owners Need Tax Support from a Lawyer?
There are several other challenges that a small business owner can face without the right support of a knowledgeable attorney. These include:
- Underpaying estimated taxes
- Filing a Schedule C with significant expenses or losses outside of the norm in your industry
- Calculation of self-employment tax.
At our Georgia tax strategy law office, you get the personalized attention and strategy you need for your company now, but also a forward-thinking plan and access to a lawyer who can help you as your company grows. As many small business owners know, building a team of advisors to help you navigate and respond to challenges, including shifts in your market, global pandemics, and an ever-updating tax code, is one of the best ways to pivot your company for success over the long run.
If you are looking for opportunities to leverage your existing tax strategy and to discuss opportunities for improvement schedule a consultation with an experienced attorney today.