Elk Grove Tax Lawyer Startups California
Starting on a new business endeavor can be a rewarding experience but also a stressful one. When starting a business, you want to be sure that you are capable of handling all the many responsibilities that come with it, especially the tax liabilities. However, there is no shame in asking for help to keep your business operating efficiently. If you require assistance to help you manage tax liabilities and other issues related to starting a business in California, you should consult with an experienced Elk Grove tax lawyer for startups in California.
At the NewPoint Law Group, LLP, we are committed to providing our clients with the legal representation that they need to handle their business startup. We know that starting and operating a successful business can require a business owner to be prepared for a number of issues, and we can help guide you through these issues. To schedule a confidential legal consultation to discuss your business startup, contact the NewPoint Law Group, LLP at 800-358-0305. You may also contact the firm by using our online submission form.
Common Tax Issues for Startups in Elk Grove, CA
There is a wide range of issues that a person or partners must consider when beginning a business. For a new business owner, it may seem impossible to handle all of the issues that can affect your startup. However, the NewPoint Law Group, LLP is here to help you address tax issues and other problems that may arise when starting a business. The following are some common tax issues that our team of tax attorneys can help you resolve.
Choosing a Business Formation
While you may not realize it, choosing a business structure is a decision that will impact your tax liabilities. There is a wide selection of business structures, and each one is subject to different tax regulations that will determine your tax liabilities. For example, a limited liability company (LLC) is considered a “pass-through entity” by the Internal Revenue Service (IRS). This means that all the profits and losses of the LLC are passed directly to the owners of the LLC, who then must report it on their personal tax return.
Alternatively, a corporation pays a flat rate of 21 percent on its earnings, and then the dividends provided to shareholders are also taxed, which creates a double tax.
When selecting your business formation, it is important to consider your goals for the corporation and which structure works best for your unique situation. Our firm can work with you to determine the type of business structure that fits your needs.
State and Local Taxes
When starting a new business, it is also important to remember that you are not only liable for federal taxes but also state and local taxes. While this can be a tedious process, the result of failing to pay state and local taxes could mean that your company becomes the target of a tax audit. If you are unsure about the state and local taxes you are responsible for, our firm can help you find the answers.
An essential part of operating a business means that you must be capable of keeping thorough records pertaining to the financial status of the company, inventory, and many other items. Failing to keep thorough records of the company could lead to a number of issues in the future. For example, if a business partner or an employee decides to embezzle money from the company, a poor recordkeeping system may allow them to escape with the crime without any evidence.
Additionally, you will want to keep thorough records as it will help once tax season rolls around. It would be difficult to claim deductions and other tax credits if you are unable to locate relevant financial information. Our firm can help you start a recordkeeping system that meets the needs of your company.
As the owner of a startup, the last news you want to receive is that your tax filings are being audited by the IRS or another tax agency. In many cases, a tax audit could mean that a tax agency has found some discrepancies with your tax reporting, and they would like to clear up any issues. However, serious tax reporting errors could result in a startup receiving an expensive bill for unpaid taxes.
If you intend to hire one or multiple employees to work at your startup, you should also be prepared to handle payroll taxes. The payroll tax is deducted from employee’s paychecks in order to pay a wide range of tax programs such as disability and unemployment insurance.
If you fail to report payroll taxes or you operate a company that has a large number of cash transactions, you may find yourself in the midst of a payroll tax audit. Our firm can help you determine your payroll tax liability so you can keep your business free from troublesome tax problems.
There are a variety of other tax law issues that the NewPoint Law Group, LLP would be able to help you manage for your startup
Speak with Our Experienced Elk Grove Tax Attorneys for Startups in California
If you require legal assistance to handle your California business startup, you should contact an experienced Elk Grove tax attorney to discuss your situation. The tax lawyers at the NewPoint Law Group, LLP possess a wealth of experience handling a number of tax issues, and we would be pleased to work with you. To schedule a confidential legal consultation to discuss your business startup issues, you should contact the NewPoint Law Group, LLP at 800-358-0305. You may also contact the firm online.