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Elk Grove Tax Lawyer for Restaurants

Managing a restaurant is a rewarding experience for an owner. However, it also requires the owner of the establishment to constantly monitor the operation of the business, especially when handling tax responsibilities. Failing to adhere to tax laws when operating your restaurant could mean receiving an unwelcome letter from the Internal Revenue Service (IRS) or another tax agency. If you need legal help to manage tax reporting for your restaurant, you should contact an experienced Elk Grove tax lawyer for restaurants as soon as possible.


The tax lawyers at the NewPoint Law Group, LLP have worked on a wide range of tax law issues for business owners, and we would like to offer you our legal services for your tax needs. Operating a restaurant and managing tax reporting is difficult for any business owner, let us handle your tax needs so you can focus on your business. To schedule a confidential legal consultation, contact the NewPoint Law Group, LLP at 800-358-0305. You can also schedule your appointment online.


Tax Laws for Restaurants in Elk Grove, CA

When operating a restaurant in California, an owner will want to ensure that their business is operating efficiently. However, a part of owning a restaurant in California is also ensuring that the company complies with a number of tax regulations. The NewPoint Law Group, LLP can help you manage your tax law issues that arise from owning and operating a restaurant.


A restaurant in California should always be aware of how the sales and use taxes will impact their company. The California Department of Tax and Fee Administration (CDTFA) has made all sales in the restaurant industry and other industries taxable unless a company is able to claim an exception. As you might expect, California sales tax is applied to the sales of tangible property, which is deemed as an item that can be held or measured.


For a restaurant, food and drinks will be the main subject of sales taxes. California has a number of tax regulations pertaining to the sale of food and drinks. For example, if you offer combo packages of multiple food items or food and drinks for one price, your tax liability may change subject to the items included in the meal.


Additionally, there are other tax regulations that a restaurant owner could overlook if they are not careful. For instance, the owner of a restaurant will have to charge sales tax for uncorking wine fees when a customer decides to bring wine to an establishment. Also, if your restaurant enforces mandatory tips for employees, these will be subject to sales taxes.


A California restaurant owner will also have to account for a use tax when purchasing taxable items from out-of-state vendors to use in their establishment. Failing to account for use tax could lead to a large tax bill or possibly even a tax audit.


To learn more about tax tips that could help you manage your restaurant business, you should continue reading and speak with an experienced Elk Grove tax lawyer for restaurants.


Tax Tips for Elk Grove Restaurant Owners

A restaurant owner in Elk Grove will be responsible for many tasks concerning their company. As a result, it can make it difficult to keep up with tax liabilities that can affect your business. The following are some tax tips that can help you stay on top of your tax liability.

One of the most useful tax tips to ensuring you remain compliant with the tax code is to keep thorough records. A restaurant owner should keep records of all transactions, payroll records, tips, and other information that may be needed when filing a tax return for the company. This will make it easier to bring all this information to an experienced tax lawyer that can help you file your tax return. You never want to enter tax season unprepared for any questions that may arise.

You should also understand when you can claim a tax deduction for your business expenses. For example, when filing a return with the IRS, you can often deduct business expenses for raw ingredients and similar materials needed to prepare food. Here are other business deductions you may be entitled to:


  • Deductions for beverages like water, wine, liquor, and soda

  • Kitchen equipment such as blenders, toasters, ovens, dishwashing machines, and even pots

  • Deductions for the cost of renting a property

  • Deductions for the depreciation of property

  • Eating supplies like forks and knives

  • Employee salaries and gifts

  • Retirement plans


This is not a comprehensive list. There are many other tax tips our firm can offer you that are not discussed above. It would help if you took the time to speak with an experienced Elk Grove tax attorney to discuss your tax situation.


Contact Our Experienced Elk Grove Tax Attorney for Restaurants Today

If you need legal assistance to remain compliant with tax law issues for your restaurant, you should contact an experienced Sacramento tax attorney for restaurants immediately. The NewPoint Law Group, LLP would be honored to work with you to handle the tax issues for your company. Our skilled tax lawyers possess broad experience handling tax matters for restaurants and other similar industries, and we would be pleased to work with you. To schedule a confidential legal consultation to discuss your tax goals, contact the NewPoint Law Group, LLP at 800-358-0305. You may also contact the firm online to schedule a consultation.

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