Awards & Recognition
The U.S. Tax Code can be difficult to interpret and comply with, let alone use to your advantage – particularly for businesses entities and taxpayers who live, work, or conduct business from outside California or the United States. That is why it is beneficial to work with an experienced Sacramento tax attorney who possesses a comprehensive background in domestic and international tax law for business entities and individual taxpayers.
At the Tax Law Office of David W. Klasing, we have extensive experience assisting individual taxpayers and business entities with international tax, corporate tax, and employment tax matters, ranging from tax planning for foreign companies, to compliance with sales tax requirements, to IRS audits of offshore bank accounts. For a reduced-rate consultation concerning a domestic or international tax issue, contact the Tax Law Office of David W. Klasing online or call our office at (916) 290-6625 to schedule your appointment today.
Sacramento Business Tax Lawyers for Domestic and International Companies
The federal tax code contains some of the most detailed and elaborate legal regulations in the United States. These regulations, which can be daunting for any taxpayer in Sacramento, create even greater challenges for international, out-of-state, and California businesses, which face some of the Internal Revenue Code’s most intensive recordkeeping and tax filing requirements.
In addition to maintaining strict compliance with these requirements, such as worker classification and payroll tax regulations, business entities must also consider the key elements of successful corporate tax and financial planning. Depending on the company’s short-term and long-term objectives, this could extend to issues such as entity selection or formation, business sales and dissolutions, succession planning, or the effective use of tax havens.
At the Tax Law Office of David W. Klasing, we are business tax lawyers who place an emphasis on helping your company meet its goals – while staying in line with the law. We provide a range of business tax services for C corporations, S corporations, limited liability companies (LLCs), general and limited partnerships, sole proprietorships, family-owned businesses and other organizations. Services we provide, and tax matters we assist with, include but are not limited to:
- Business entity selection
- Business succession planning
- Business transactions
- California employment tax audits
- California sales tax audits
- Employment tax
- Tax havens
- Worker classification audits
Business Transactions
Business transactions that appear profitable at first glance may prove detrimental to the purchasing or selling party if there are issues such as unpaid back taxes or ongoing litigation that could create liability. Whether you need to perform due diligence before buying a business, or you need assistance enforcing a contract after becoming the victim of nonpayment, our Sacramento business transaction lawyers can facilitate even high-stakes transactions by drafting and reviewing contractual agreements, identifying potential tax pitfalls, and more.
Entity Selection
Entities are not one-size-fits-all, but, on the contrary, offer numerous structures for aspiring business owners to choose between. Unfortunately, making the wrong decision can set your business back before operations even begin. That is because the entity you select will have far-reaching tax implications – not only for the entity itself, but also for you personally. For example, you and other owners or shareholders could become personally liable for the business’ debts, depending on how the new company is structured. Entity structure also impacts critical issues such as accounting and bookkeeping requirements, control and transfer of ownership, and continuity of existence.
Succession Planning
Eventually, a time will come when you are no longer willing or able to maintain ownership of your business. Make sure you are prepared with a thorough business succession planning strategy. Our Sacramento succession planning attorneys can help you determine whether the right course of action is to gift or sell the company, guiding you through key tax and financial planning issues along the way. Whether you wish to pass the business down to your son or daughter, enter a buy-sell agreement, or take a different approach, we are here to provide the robust assistance you need.
Contract Drafting and Review Services
Business transactions can expose you to unwanted tax consequences if you overlook fine print or forget to consider certain tax laws. Our business transaction attorneys can review your contracts and evaluate prospective business deals to advise you on the potential tax outcomes.
International Tax Lawyers for Foreign Companies, U.S. Expats, and Citizens Abroad
The Internal Revenue Service works with various governments and tax authorities around the world to enforce global compliance with U.S. tax laws. These laws and treaties ensnare not only multinational business entities, but many taxpayers who would never expect to be affected, such as dual citizens, frequent business travelers, recent immigrants to the United States, and U.S. expats. Whether you are a Sacramento resident with financial ties to another country, or the owner of a foreign company with plans to open a U.S. branch, working with an international tax attorney can help to limit penalties and tax liabilities while improving your compliance with the law.
Tax Planning Services for Foreign Companies
International tax treaties create a complex regulatory web linking multinational business entities and tax authorities around the globe. Obtaining the services of an experienced tax attorney or dually-licensed attorney-CPA makes it easier to navigate these regulations deftly, creating opportunities to forge lucrative business relationships, protect against potential legal issues, make smart utilization of U.S. tax laws, and ultimately, increase profits.
FBAR and FATCA Tax Attorneys in Sacramento
If you have income or assets in any country or territory outside the United States, you may be impacted by two tax laws that create foreign income reporting requirements: (1) the Bank Secrecy Act (BSA) and (2) the Foreign Account Tax Compliance Act (FATCA).
The BSA creates a requirement for all U.S. persons, including citizens and resident aliens (i.e. green card holders), to report foreign bank accounts that exceeded $10,000 in value at any juncture during the year. This also applies to scenarios where a taxpayer has several smaller offshore accounts whose combined values exceed $10,000 in aggregate. To report foreign bank accounts and comply with the BSA, taxpayers must electronically file an FBAR, also called a Foreign Bank Account Report or FinCEN Form 114.
There is a similar requirement under FATCA, though the reporting threshold is substantially higher at $50,000. If the value of the account or accounts surpassed $50,000 in aggregate, the taxpayer must file Form 8938 (Statement of Specified Foreign Financial Assets) to be in compliance with FATCA. Note that filing Form 8938 does not negate the duty to file an FBAR, nor vice versa, if both reporting thresholds were exceeded.
Business Tax Audit Defense Representation in Sacramento, CA
Businesses can be audited at the federal level by the IRS, or, at the state level, by the Franchise Tax Board (FTB), which handles business income tax audits in California; the Employment Development Department (EDD), which handles employment tax audits in California; or the California Department of Tax and Fee Administration (CDTFA), which performs sales tax audits in California. Our office can assist your business with any type of California or IRS audit, including associated audit appeals and tax litigation.
Unfortunately, federal and State of California (FTB, EDD and CDTFA) tax audits are an inevitable part of the life cycle for most business entities. This is particularly true of certain types of businesses that the IRS or California has deemed high risk for criminal tax activity, such as automotive dealerships, dental practices, veterinary practices, and cash-based businesses. Business can also be singled out for audits if they engage in international commerce, make online sales in the state of California, or do business with companies that have been audited in the past.
Business Tax, Accounting, and Bookkeeping FAQs
Business tax planning is a major undertaking, especially if this is your first time starting a business in California. The FAQs below may help to provide clarity, though you are strongly recommended to discuss your tax questions with an attorney before taking action.
- Can you convert a C corporation to an S corporation in California?
- How are foreign corporations taxed on U.S. source income?
- How is business income earned by nonresidents taxed?
- Is it better to form an LLC or an S corporation?
- Is keeping bad business books a federal tax crime?
- What are some common business tax mistakes to avoid?
- What is the difference between general, limited, and limited liability partnerships?
- What is the most popular type of business entity?
- What should small business owners know about California and IRS payroll tax audits?
- When should you start business succession planning?
Note: If you have concerns about the privacy of our initial or subsequent communication and are unable to easily travel to our Irvine / Orange County Main Office, consider scheduling a GoToMeeting to safely and securely establish an initial or maintain an existing attorney client relationship. With end-to-end encryption, strong passwords and top-rated reliability, no one is messing with your meeting. To schedule a reduced rate initial consultation via GoToMeeting follow this link. Call our office and request a GoToMeeting if you are an existing client. We are generally happy to travel to any of our appointment only satellite offices for a subsequent meeting in appropriate circumstances once a relationship is established via a signed engagement letter and the payment of an initial retainer or where enough retainer is available where a current client to cover the reasonable travel time and time required for the meeting.
Will it cost me more to hire the Tax Law Offices of David W. Klasing, who’s main office and the vast majority of the firm’s staff is located in Irvine California, but an appointment only Satellite office is close to my location, as opposed to a local company? Absolutely not! See our policies that address this issue here:
Sacramento, CA Tax Attorneys Providing Corporate Domestic and International Tax Services
From providing FBAR audit representation to consulting with business owners who need guidance on issues like entity selection and formation, the versatile and experienced tax lawyers at the Tax Law Office of David W. Klasing deliver the highest level of support, communication, and client service to resolve your tax issue efficiently. Whether you are concerned about a notice you received from the IRS, are opening a U.S. location to expand your multinational business, or you’re thinking of starting a business in Sacramento and need tax advice before proceeding, turn to our award-winning tax firm for trusted guidance. To schedule your reduced-rate consultation, you can contact us online, call our office at (916) 290-6625 or at (800) 681-1295.
