Each type of business has different tax consequences and other important consequences such as whether the owners are personally liable for business debts.
Fort Worth, TX – The choices that are made when an individual or group starts a business can have serious long term consequences on the company’s finances and liabilities. Because these choices can stay with the company for so long, it is important that these foundational decisions are made with professional advice and an understanding of how taxes and other important matters will be relevant to the future of the company. Lawyers are always a good source of information for anyone who has concerts about their business taxes and related legal matters. Here is a brief overview of some of the things that tax lawyers can help with in the early stages of a business.
Businesses can be formed in different ways
Fort Worth tax lawyers will advise a person starting a business that they can choose various types of structures that may have pros or cons depending on the situation. There are partnerships, limited liability corporations, S corporations, sole proprietorships, and non-profit organizations. Each type of business has different tax consequences and other important consequences such as whether the owners are personally liable for business debts.
Filing taxes for the first time
When a business is preparing to file their taxes for the first time, Texas tax lawyers are important at this time as well. The company should have enough money set aside to be able to cover their tax liability, and they should also remain compliant with whatever tax rules and regulations are related to their industry. If the IRS responds with the need for more information, when they want to audit the business, or they have concerns about deductions and write offs, the attorneys can give advice regarding how to respond and settle the issue quickly and efficiently.
Selling or merging a business
There are some times when a business will undergo major changes such as a merger or being sold off to a different individual or corporation. Tax lawyers are also important at this time, as there are changes in taxes that happen when a business goes through this process. The new owners will want to be informed regarding how they should file and any matters that need to be handled after the merger or takeover.
Overlap with trusts and charities
Estate planning lawyers can be consulted when a business wants to set up a trust for donations to charities or other forms of philanthropy. There can be various benefits to setting up charitable causes through using trusts or similar legal instruments as opposed to just giving money away on an ad hoc basis as needed.
Additional advice is available from local firms
USAttorneys.com is a service that can help people get in touch with lawyers in their area. Anyone who needs a referral to a local attorney can call 800-672-3103 for assistance.
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