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Are You Starting a Business? some tips from business tax attorneys

Tuesday, October 6, 2015
We are the Strategic Tax Lawyers, a firm of professional business tax attorneys in Los Angeles. If you are looking for legal advice regarding your new business, contact us for tax-related concerns.  When you start a business, the key to succeeding is understanding what your tax obligations are.  This not only includes income tax rules, but also rules about payroll taxes.  We are here to provide you with some information about legally starting your business. This information can also be found on the IRS website.
One of the first choices you will need to make is about the business structure. These choices can include sole proprietorship, corporation or partnership. Legally, the differences will determine which of the IRS tax forms you will be required to file each year.

Regarding business taxes, there are different types which include income tax, employment tax, self-employment tax, and excise tax.  The business structure that you will choose will determine the type of tax you will owe.  There may be a chance that you will need to estimate your tax payments.  Your paid tax professional will most likely advise you of this if you have one. But if not, we recommend paying the IRS directly online with IRS Direct Pay which can be set up to withdraw funds directly from your bank account.  Find out if you will need an Employer Identification Number (EIN) and if you do, you can apply for one on the IRS website.

There are two types of accounting methods you will need to familiarize yourself with to report income and expenses.  We advise our clients to choose one method and stay consistent with it. The two methods are cash and accrual. If you choose the cash method, your business will need to report all income and deduct all expenses in the same year in which you receive or pay them. On the other hand, the accrual method allows you to report income and deductions whenever you earn or incur them, which is not specific to a certain year.

Small businesses have to offer employee health care coverage. Then you will have the Small Business Health Care Tax Credit to assist with paying for health insurance for your employees. The credit is available to businesses with fewer than 25 employees, either full-time or part-time.  Some businesses can receive a tax credit up to 50% of what the premiums cost is. If you employee more than 50 full-time employees or part-time employees you may need to offer coverage that offers a minimum value and is affordable to their employees.

If you are looking to hire an experienced business tax attorney in Los Angeles, then the Strategic Tax Lawyers, LLP are the tax attorneys for you.  The experienced business tax attorneys in Los Angeles with years of documented successes dealing with the IRS and tax-related issues.  Contact the Strategic Tax Lawyers for a free case consultation at (800) 669-4775.