Business Tax Lawyer & Law Firm
Tax considerations, or the lack therefore, are often a major reason as to why some businesses succeed and others fail. A business owner’s failure to contemplate tax questions as part of the business planning and entity selection process can result in the accumulation of significant unpaid liabilities and penalties to the point where the company is no longer sustainable or viable. In some cases, such as in the failure to properly administer federal payroll taxes, the responsible party and business owners can be held personally liable for the unpaid tax. Furthermore, there are important tax consideration to make when one generation of managers or principles is considering passing the torch to a new generation.
The experienced business tax lawyers of the Tax Law Offices of David W. Klasing are dedicated to assisting business owners plan for and meet their local, state, and federal business tax obligations. We are proud to offer corporate tax planning services for an array of commercial needs including business formation, routine tax planning, administration of employment & payroll tax obligations, and business succession planning. To schedule a confidential reduced-rate tax consultation with the experienced professionals of the Tax Law Offices of David W. Klasing call 800-681-1295 or contact us online.
Legal Guidance for Business Formation & Entity Selection
Selecting an entity for your business is a fact-intensive process that is highly dependent on your business goals, tax planning, and a number of other considerations. In California and throughout the United States, few business owners are best served by a sole proprietorship despite this entity type being the default for individuals who fail to engage in a formal entity formation process. One of the reasons why sole proprietorships are typically disfavored is because they do not provide insulation for personal assets from business liabilities. However, there may be limited circumstances where such an arrangement may be appropriate. However that decision and any other regarding the selection of a potential business entity type cannot be made until meticulously weighing the risks, benefits, and goals applicable to your company.
Consider that the tax handling for your company can vary significantly based on the entity you select. If you should choose to form an S Corporation, a limited liability company (LLC), a partnership, or continue as a sole proprietorship (significant changes to federal handling of partnerships that would end many aspects of the traditional pass-through handling starting in 2021 when 2018 returns are examined were passed by President Obama as part of H.R. 1314, the Bipartisan Budget Act of 2015) these entities are all known and treated as pass-through entities. Pass through entities are not taxed at the entity level, but rather the income of owners is taxed on their individual returns. By contrast, a traditional corporation is taxed at both the entity level and at the individual level. Despite the potential for double-taxation in a traditional C Corp., there are certain tax advantages associated with the entity including an ability to defer taxation provided that a capital gain is not realized and the corporation retains its income.
Questions about Business Purchases, Sales and Dissolution?
- Buying or selling a business and memorializing the deal
- What is involved with the due diligence process?
- Asset purchase/asset acquisition defining characteristics
- What are the defining characteristics of a stock purchase?
- What are the defining characteristics of a merger?
- What is a short-form merger?
- California law concerns for mergers or acquisitions
- How do mergers and acquisitions implicate securities law?
- What corporate law considerations should I be aware of?
- Hart-Scott-Rodino Act and mergers and acquisitions
- What are general characteristics of purchase agreement?
- Common ancillary agreements for purchase and sale agreement
- How to properly close a purchase and sale transaction
Business Succession Planning for Family Companies and Closely-Held Corporations
While we all like to believe that we will be able to perform the work we love indefinitely, the simple fact of life is that at some point we all will be unable to fulfill the daily responsibilities of running a company. However, the founder, company president, or CEO may have certain ideas about how he or she would like the business to develop after his or her departure. Planning for these unfortunate eventualities of life can help protect a company from a hostile takeover or from drifting astray from the goals and principles the company was founded upon. In any business succession matter we work on we approach it with four main goals in mind:
- Minimize and mitigate the financial burden created by estate, gift, and other transfer taxes.
- Improve and maintain liquidity.
- Sustain organizational continuity in management.
- Equitable and adequate financial support consideration for family members and other beneficiaries potentially including key employees.
We approach all succession planning matters individually. We always begin by assessing your individualized needs and goals.
From my law offices, I am available to provide a variety of legal services, including:
- Entity selection
- Business transactions
- Family limited partnerships
- Partnerships / limited partnerships
- Sole proprietorships
- Limited liability companies (LLC)
- Limited liability partnerships (LLP)
- Nonprofit and tax-exempt organizations
- Mergers, acquisitions and divestitures
- Business purchases, sales and dissolution
- Joint venture agreements
- Commercial leasing
- Contract disputes
- Noncompete and nondisclosure agreements
- Business dissolution
- Succession planning
Trusted Guidance for Commercial Employment, Payroll, Sales Tax
Business owners are required to administer and comply with an array of business taxes at the state and federal level. Payroll or employment tax can include California state payroll taxes administered by the Economic Development Department and federal payroll taxes administered by the IRS. California payroll taxes include Unemployment Insurance (UI), Employment Training (ETT), State Disability Insurance (SDI), and the California Personal Income Tax (PIT). California employment taxes can apply to a broad range of employers ranging from major corporations to household employers who may only have a single employee. A household employer is any person who employs one of more household workers and pays quarterly wages in cash of at least $750.If you are having concerns or experiencing potential violations for payroll or California sales tax audit, contact an experienced business tax lawyer.
Experienced Tax Lawyers Assist with an Array of Commercial Tax Needs & Obligations
The experienced tax attorneys of The Tax Law Offices of David W. Klasing are experienced in providing tax guidance for an array of business needs. We can advise companies regarding lawful tax minimization strategies without resorting to the use of increasingly risky former corporate tax havens that will now report your accounts and identity to the U.S. government due to provisions contained within FATCA. Furthermore we can provide trusted guidance regarding business entity formation, succession planning for family and closely-held companies, and employment & payroll tax obligations. To schedule a private, reduced-rate consultation with an experienced tax professional call 800-681-1295 or contact us online.