Tax Tips For Starting Your Own Business

June 6, 2016

 

 

 

If you’re starting a new business, the tax obligations aren’t something you should try to handle alone. Meeting with a qualified tax and business attorney can save you thousands of dollars and ensure your business is starting out on the right foot. When it comes to taxes, there’s no room for error. An audit, additional taxes, penalties and fees can become a nightmare if you make one error, or grab the attention of the IRS.

 

The first day your business is up and running, your business structure should be set up and you should have a system in place regarding your records, expenses, start up costs and employee(s). 

 

One of the most important decisions you make is the structure of your business.  You can’t enter into this decision lightly - you should get thorough advice from counsel. There are numerous legal structures to choose from, such as; sole proprietorship, limited liability, cooperative, corporation and partnership. What structure you choose will impact how much you’ll pay in taxes, paperwork required, liability and even the amount and way you raise money if needed.

 

Your business will have to set up a ‘tax year’. There are times you can set your own tax year (sometimes the government will make this choice for you). Your attorney will either choose the proper tax year or ensure you’re in compliance with government regulations and requirements. Compliance is also a must when it comes to Colorado’s state taxes, especially if you do business outside the state.

 

If you’re the only employee, you may still have tax requirements like quarterly estimated tax payments. Even if you don’t have to pay business taxes, there can be complicated tax issues from being both the employer and employee.

 

Do you know what the IRS considers ‘gross income’? This income includes property, services, sales, goods and more. The failure to report gross income can net you penalties, fees and interest from the IRS. On the flip side, a tax attorney can also help you with your deductions, ensuring you take and utilize every deduction available.

 

The cost of your business formation and continuing administration from a qualified tax and business attorney can be offset by future problems with the IRS and help you have a successful business. Each year, and even daily, there are changes to the tax laws and tax codes. Your attorney follows these new codes and laws and will advise you on their possible impact to your business.

 

Have you thought about your business five or ten years from now? What if you decide to sell your business? Take on a new partner? Open a second location? What happens to your business if your pass away?

 

Your new business, or even an established business can benefit from meeting with a qualified tax and business attorney, save you time, money, a lot of headaches and stress.

 

Gantenbein Law Firm is located in Denver, Colorado- and serves clients throughout Colorado. When you need the best lawyers for your business, contact Gantenbein Law Firm at 303-618-2122

 

Gantenbein Law Firm is also focused on Tax Law, Real Estate Law, Foreclosure Defense and Estate Planning, Wills, Trusts and Probate. For more information on these areas of practice, visit www.gantenbeinlaw.com or call 303-618-2122 to schedule your consultation of you case.

 

 

 

 

 

 

 

 

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Gantenbein Law Firm