In this world nothing can be said to be certain, except death and taxes.
                                                                                                                                   Benjamin Franklin

For businesses, paying tax obligations is one area where there is almost no room for error.  It is critical for you to understand what the IRS and your state requires to avoid problems.  Audits can be very expensive.  Not just due to potential penalties or additional taxes, but also the for countless hours of record-gathering and preparation that would be necessary.  This is why it is critical to work with your trusted advisor to make sure you understand and meet your tax obligations right from the start.

There are four key areas of concern related to taxes:

1. Business Income – You may think you understand and can easily define your business income.  However, you need to fully understand what the IRS refers to as “gross income.”  Gross income may include goods, services, property, and bartering, as well as income from sales.  Failure to report something that the IRS considers gross income can lead to additional taxes, interest, and penalties.

2. Employee Taxes – The issue here is mostly with businesses that have no employees.  In this case, it is important to understand that you may be required to meet tax requirements for a self-employed individual and make quarterly estimated tax payments.  Even if you are a sole proprietor, you may be considered both an employer and an employee, and the tax implications of this dual role can be complicated.

3. Business Deductions – There are many business deductions available for businesses.  It is important that you understand what they are and what is required to use them. You certainly want to deduct everything possible, but you need to be very careful to not make mistakes or you are virtually inviting an audit.

4. Laws and Regulations – As you are probably aware, there is a new tax code every year.  Both Federal and State rules change so frequently that it is nearly impossible for the average person to keep up with them.  You business attorney will keep up with them and be able to let you know how they impact your business.

Having a good tax plan in place is critical to building a solid foundation for your business.  Make sure that you partner with the right attorney to get this set right from the start.

As a business owner you will, at some point, need a lawyer. Not necessarily because you have a problem to deal with, either (although if something should happen it is nice to have someone you trust to turn to!).  It is almost 100% guaranteed that if you own a business, one or more of these things will come up:

•    You need to set up a business entity.
•    You will need someone to look over and negotiate a lease
•    You will need help preparing contracts.
•    You will have issues with clients who do not pay.
•    You may need to protect your intellectual property.
•    You will have issues with employees.
•    You will need help selling your business.

And this is just a short list of things that you may have to deal with.  That is why it is important to develop a relationship with an attorney that you trust.

I’m no mind reader, but I can take a guess at what you are thinking right now.

“I’m just a small business owner and there’s no way I can afford a relationship with a lawyer.”

This is where you are wrong.

There are two issues about which I am passionate that continue to drive my practice:
1.    Making sure parents name guardians for their children.
2.    Making sure business owners have affordable access to a stellar attorney.

Why should good legal service only be available to large corporations?

The answer is, of course, “it shouldn’t.”  High-quality legal services should be available to every business owner. And it is.  You just need to find them.

Bottom line, developing a relationship with a lawyer before you need them will go a long way in ensuring your long-term success plus keep you out of situations that may cause big problems down the road.  And, it’s easier and much more affordable than you may think.