Business entities are required to comply with a complex and ever-changing network of state and federal tax regulations. However, tax compliance is not the only challenge facing corporations, LLCs, and partnerships. Business owners must also be mindful of how their operational decisions – from opening new branches, to hiring employees and independent contractors, to leasing industrial equipment – could affect tax liabilities or filing obligations in the future. Business owners throughout California and across the United States trust the experienced San Bernardino business tax lawyers and CPAs at the Tax Law Office of David W. Klasing to deliver practical, cost-effective tax guidance. From entity choice and formation in California, to federal FBAR and foreign account reporting, our tax attorneys and business accountants know what it takes to protect your bottom line.
Choosing the Right Type of Business Entity: What Are the Tax Implications of Each?
When forming a business entity, it is imperative to choose the type of structure and filing status that will best support your vision and priorities. Our entity formation lawyers can help you compare the tax advantages and disadvantages of different business structures and associated liability protection, enabling you to make a strategic decision that will help your company start out its financial life “on the right foot.” Some key tax implications for each entity type are discussed below.
How Are Corporations Taxed?
It is critical to emphasize that C corporations and S corporations, though both called corporations, are not taxed in the same fashion. C corporations must contend with the issue of double-taxation, which occurs when the same income is taxed twice: once at the corporate level, and again at the individual level. In contrast, S corporations are “pass-through” or “flow-through” entities, meaning shareholders are taxed only at the individual level.
While this offers the opportunity to curb tax liabilities and save money, the C corporation may offer other benefits, such as greater ease and flexibility when it comes to raising funds and potential tax savings during the startup phase of the business before distributions to shareholders are made, making a careful selection essential. Fortunately, it may be possible to convert a California C corp to an S corporation if certain criteria are met.
How Are LLCs Taxed?
Limited liability companies are popular among business owners in all types of industries, with several good reasons. For instance, LLCs offer significant protection from personal liability for business debts – without the sometimes-burdensome complexity and rigidity of a C corporation. To provide an example, business owners may elect for a limited liability company to be federally taxed as a partnership, C or S corporation, or disregarded entity where it only has one owner. We can help you determine, for your unique business needs, whether it is better to form an LLC or another appropriate entity.
Tax Planning and Preparation Attorneys for Foreign and Domestic Businesses
Operating a successful business demands considerable time and energy. Unfortunately, so does staying abreast of California’s complicated tax regulations. Instead of wasting precious effort staying current on developments in excise, employment, payroll, sales and use and income tax rules, let the corporate tax professionals at the Tax Law Office of David W. Klasing manage your business tax planning and compliance needs. From helping you take advantage of credits and deductions, to ensuring the proper forms are timely filed, to representing you in audit proceedings, to educating you on the tax implications of possible deals and transactions, we are here to simplify and facilitate your state and federal corporate tax obligations.
Corporate Tax Preparation Services in San Bernardino, CA
The Internal Revenue Service is not the only agency that collects and reviews tax returns. At the state level, California agencies like the Employment Development Department (EDD) and Franchise Tax Board (FTB) also work to enforce compliance – and to conduct tax audits. Our tax preparation attorneys can make sure that you have accurately completed and filed all necessary forms with the IRS, FTB, and other state tax agencies, or, where necessary, discuss strategies for re-entering the tax system and correcting past noncompliance.
See our Audit Representation Q and A Library
If you do business abroad, our international tax lawyers can assess your compliance with FATCA, FBAR reporting, and related disclosure requirements. We also work with internet sellers and online businesses, which are, unfortunately, prone to audits and tax investigations, particularly regarding California sales and use tax.
See our 2011 OVDI Q and A Library
See our FBAR Compliance and Disclosure Q and A Library
See our Foreign Audit Q and A Library
See our Sales Tax Q and A library
San Bernardino Corporate Tax Lawyers and CPAs Providing Accounting and Bookkeeping Services
Tax laws are constantly changing. Don’t let your business be caught unprepared. At the Tax Law Office of David W. Klasing, we understand the importance of both experience and innovation, which is why our California tax lawyers track the latest court decisions, IRS initiatives, and legislative activity, helping your business stay one step ahead of regulations as they evolve. With our award-winning tax professionals handling your company’s tax, accounting and bookkeeping needs, you have more freedom to focus on what really matters: making your business grow. From corporate tax litigation and IRS appeals, to dissolutions and formations, to California sales tax audits, our San Bernardino tax attorneys are here to provide quality representation you can count on.
See our IRS Appeals Q and A Library
See our Tax Litigation Q and A Library
To discuss your corporate tax needs in a reduced-rate consultation, contact the Tax Law Office of David W. Klasing online, or call our San Bernardino office at (909) 991-7557. Alternately, you can reach our main office by contacting (800) 681-1295. Please note all meetings at our San Bernardino tax office are by appointment only.
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:
See our Business Purchases and Sales Q and A Library
See our Online Business Q and A Library
See our Car Dealership Audit Q and A Library
See our Business Succession Q and A Library
See our International Tax Q and A Library