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All Irvine, CA and Orange County residents are subject to tax laws enforced by the federal government and state of California. However, some of the strictest and most complex rules apply to business organizations and international taxpayers, who must comply with a host of tax and intonational information reporting requirements to which other taxpayers need not adhere.
For example, taxpayers with offshore sources of income, in addition to picking up the offshore taxable income may be required to electronically file a Foreign Bank Account Report (FBAR), 5471 or 5472. To provide another example, domestic business entities must ensure that their workers are classified properly for payroll tax purposes. Moreover, U.S. owned foreign entities must engage in careful tax planning, such as exploring potential uses of tax havens, to promote the greatest odds of financial success. The business and international tax attorneys at the Tax Law Office of David W. Klasing have extensive experience working with international taxpayers and companies, and are here to resolve your matter with precision, efficiency, and attention to detail.
Irvine Business Tax Attorneys for Foreign and Domestic Companies
Selling a quality product or service is only one aspect of running a successful business. To achieve your goals and maintain profitability in the long term, it is imperative to engage in strategic tax planning – especially in a regulatory climate as complex and restrictive as California’s. Virtually every business decision you make will affect the company’s tax liabilities, its filing requirements, and its eligibility for various tax credits, exemptions, and deductions. Consulting with an experienced Irvine business tax attorney, like those at the Tax Law Office of David W. Klasing, enables you to make informed financial decisions that can benefit your business.
Our tax firm works with all types of business entities throughout the Irvine area, including limited liability companies (LLCs), sole proprietorships, C corporations, S corporations, general partnerships, limited partnerships (LPs), limited liability partnerships (LLPs), limited liability limited partnerships (LLLPs), startups and family-owned businesses. Business tax services we provide in Irvine, CA include:
- Business entity selection
- Business succession planning
- Business transactions
- California employment tax audits
- California sales tax audits
- Employment tax
- Tax havens
- Worker classification audits
Business Entity Selection in Irvine
Choosing a structure for your new business entity – for instance, deciding whether your corporation will be structured as an S corporation or a C corporation – is one of the first and most impactful decisions you will have to make about the company. Different entities are subject to different tax requirements, meaning some are taxed more heavily than others. Before choosing a business structure, make sure you thoroughly evaluate the pros and cons of each option with a business entity selection attorney who can clearly explain the short- and long-term tax impacts to expect.
Business Succession Planning in Irvine
At some point in life, you will have to pass ownership of your company on to another individual, such as a trusted business associate or the next generation of your family. It is crucial to ensure that a solid business exit strategy is already in place prior to gifting or selling your business. This will simultaneously enable the company to continue operating as smoothly as possible during the transition, while protecting your best interests and minimizing your tax liabilities.
Business Transaction Tax Services in Irvine
Business sales and business purchases can have unforeseen tax consequences, which can undermine or even destroy your company’s financial stability. Working with a business transaction attorney will help you to anticipate and strategize for the tax consequences of sales and purchases, while making it easier for you to protect and develop your assets.
International Tax Services for Businesses, Expats, and Citizens Abroad
Businesses that operate in the United States must obey provisions of the U.S. Tax Code requiring entities to disclose foreign assets and business income. The same is true of individual taxpayers who have foreign assets and income, which must be reported to the Internal Revenue Service (IRS) if certain criteria are met. Various types of taxpayers must comply with these requirements, including U.S. citizens who live or work overseas, taxpayers who hold dual U.S. citizenship, and U.S. trusts and estates.
Tax Planning for Foreign Companies
Each country has its own tax system, which in turn interacts with U.S. tax laws and international treaties. Working with a dually certified attorney-CPA, like David W. Klasing, allows your company to better assess the tax impacts of its U.S. based international business operations, while making it easier to avoid fines and legal pitfalls by complying with federal laws. Whether you need assistance forming a U.S. entity and choosing a business structure, meeting the filing requirements for a foreign-owned domestic U.S. corporation, or mitigating the penalties established by transfer pricing regulations, rely on our tax planning services for foreign companies to help you achieve your business objectives with greater speed and cost-efficiency.
Tax Services for Expats and Citizens Abroad
The United States is unique in imposing tax on a worldwide basis based on both citizenship and residency. This means that U.S. citizens and green card holders abroad often have income reporting and foreign information filing requirements, despite being located thousands of miles away. Among these requirements, one of the most significant is FinCEN Form 114, better known as the FBAR, which must be filed electronically if:
- The taxpayer is a U.S. person with either (1) signature authority over, or (2) financial interest in, one or more bank accounts outside the U.S., including savings accounts and checking accounts.
- The value of the account – or the accounts’ combined value, if more than one exists or existed – exceeded $10,000 at any time during the tax year.
If the taxpayer meets these criteria, he or she must timely file an FBAR. Taxpayers with FBAR obligations typically must also file Form 8938 (Statement of Specified Foreign Financial Assets), which becomes mandatory once a $50,000 foreign asset threshold is surpassed. While the failure to comply with these requirements can result in severe consequences, the IRS offers several programs to help taxpayers minimize penalties through voluntary disclosures or amended filings.
Irvine, CA Tax Attorneys for U.S. and International Businesses and Individuals
Whether you are an entrepreneur who has tax questions about starting a small business in Irvine, a business owner who needs help analyzing the tax consequences of a prospective merger or acquisition, a U.S. taxpayer with entities and bank accounts in another country, or a U.S. citizen who lives and works abroad, turn to the business and international tax attorneys at the Law Office of David W. Klasing for reliable, comprehensive support. Our knowledgeable, award-winning Irvine tax lawyers have extensive experience, and are ready to devote ourselves to resolving your tax matter efficiently. For a reduced-rate initial consultation, contact our Irvine office at (949) 681-3502 or (800) 681-1295, or contact us online.
