Corporate Tax Lawyer
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Hiring a corporate tax lawyer is good business BEFORE owners face an IRS audit! A good business tax attorney can help structure and manage a small or large corporation and keep the Internal Revenue Service out of their hair! Hiring expert legal counsel just makes plain good sense for businesses just starting out or for those who want to expand. Corporate attorneys can help plan mergers, acquisitions, and divestitures; provide expert legal opinions on transactions; assist with reviewing quarterly revenue obligations and issues; and analyze and interpret intricate fiscal issues that can easily confound most CEOs. Entrepreneurs may know the ins and outs of operating a profitable enterprise, but revenue laws can be complicated and taxing at most. Corporations should rely on expert legal counsel to help manage and protect assets and plan for greater profitability in the future.
Engaging the services of a good corporate tax lawyer is actually an application of sound Biblical principles. Those who forfeit seeking legal counsel are doomed for failure. "Where no counsel is, the people fall: but in the multitude of counselors there is safety" (Proverbs 11:14). "He is in the way of life that keepeth instruction: but he that refuseth reproof erreth" (Proverbs 10:17). Many new businesses fail in the first three to five years of operation simply because owners fail to solicit or take heed to the wisdom of professional attorneys who are highly skilled at helping to structure corporate finances for success. Complicated corporate financial matters can prove to be a formidable foe for the unwise. However, obtaining good legal counsel to help guide in decision making can easily help a company stay in the black. From establishing the initial infrastructure and managing day-to-day fiscal operations, to making clear and concise judgments about acquisitions and mergers, a savvy lawyer is an indispensable asset.
A proficient business tax attorney can ensure that small and large corporations stay compliant with federal and state revenue regulations and provide expert representation in case of federal audits, a CEO's worse nightmare. Corporations are subject to dozens of taxes; and unless an owner is familiar with regulations, it is easy to fall behind on payments and incur penalties and interest. Corporations are expected to file payroll taxes on employee earnings; franchise payments to the state in which the business is located; excise fees on gas, cigarettes, and luxury items; federal and state tax on gross income; and real estate assessments on property owned by the company. Considering these charges, plus ad valorem fees on new vehicles purchased for the business, sales and use charges for retail establishments, and pesky unemployment taxes; and the free enterprise system might not seem so free after all!
Before starting a new business, entrepreneurs may need to consult with a corporate tax lawyer to determine how to structure an organization to avoid paying excessive charges. The type of business entity determines how much the Internal Revenue Service and state government will assess an owner or corporation. For example, the government only assesses sole proprietorships, companies owned by a single individual, tax on net profits earned through the year. S Corporations, which are owned by a group of shareholders, are exempt from income assessments; however each shareholder is responsible for paying taxes on dividends earned as income. C Corporations have potential to make the most money and are assessed on a sliding scale: 15 percent on the first $50,000 of net profit; 25 percent on the next $25,000; and a huge 34 percent on the remaining profit. A partnership or limited liability corporation, LLC, is owned by two or more partners; and the owners will incur a liability based on the amount of their investment, or ownership, in the company. Of course, a professional business tax attorney can apprise owners of either of these entities of potential obligations to federal and state governments.
Many entrepreneurs make a grave mistake by neglecting to secure the services of a competent corporate tax lawyer. Most people go into business to make money; but owners fail to realize that as the company grows, so do the profits and so do the monetary obligations. When a company hires additional employees and begins to provide employer funded retirement plans; acquires new facilities; expands inventory to meet increasing product demands; purchases new equipment for greater productivity; or expands into newer markets; more tax obligations are incurred. Unemployment, property, and revenue assessments increase; but an astute business tax attorney can advise owners about how to gradually pace and plan for growth. The key is to avoid becoming literally overtaxed and overburdened by obligations that take a hefty bite out of net profits. A good lawyer can also help corporations protect assets by moving some operations offshore, saving hundreds of thousands in charges. While basing American-owned corporations on foreign soil is a controversial issue, larger enterprises see the practice as a viable solution to avoid paying too much in domestic taxes. A corporate tax lawyer will help ensure that offshore operations comply with foreign regulations.
Corporate mergers, acquisitions, and divestitures also determine federal and state obligations. When companies merge to form a single entity, or conglomerate, the structure of the new enterprise may maximize or minimize obligations to the buyer or seller. Corporations frequently merge to reduce assessments or to qualify as a tax-free entity. Businesses may divest holdings and distribute profits to shareholders to reduce obligations, or change corporate structure to shield assets. Divesting or disposing of a venture also has varying consequences. Owners should consult an experienced business tax attorney before making decisions to merge, acquire, or dispose of corporate holdings in order to anticipate and accurately estimate obligations and benefits to buyers and sellers. Wise business owners will find that in the multitude of counselors, there is safety and shelter from corporate tax woes.
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