San Diego Corporate Tax Attorney + CPA
The San Diego business tax attorneys and CPAs at the Tax Law Office of David W. Klasing possess decades of experience providing foreign and domestic business owners, partnerships, LLC’s and Corporations with strategic, pragmatic tax guidance. We offer S and C corporations sophisticated tax and legal services in the areas of, business startups and entity selection, corporate mergers and acquisitions, corporate tax litigation, tax appeals, corporate tax planning and preparation, California and IRS tax audit representation, investment funding for startups, corporate dissolutions, business transactions, and other key issues at the intersection of tax compliance and business planning. By providing tailored, practical guidance, our San Diego tax attorneys can help you minimize tax liabilities while making advantageous financial decisions for your business.
Entity Selection and the Tax Implications of a Corporation or LLC
Our business entity selection attorneys can help you explore the tax repercussions of forming a corporation in California, understand the significant tax differences between S corporations and C corporations, and engage in a business formation and tax planning strategy that aligns with your goals and vision for the company.
Tax Implications of S and C Corporations
C corporations are taxed at both the individual and corporate level, which may prove too costly for certain businesses. For business owners who wish to avoid double-taxation, it may be preferable to form an S corporation. As pass-through entities, S corporations are not subject to income taxes at the corporate level. Instead, each shareholder is taxed at the individual level, according to his or her share of the S corporation’s income. We can help you understand the tax implications for each business entity in detail.
Tax Implications of Limited Liability Companies (LLCs)
Limited liability companies are the most popular type of business entity. Like corporations, LLCs generally provide members with protection from personal liability for business debts, at the same time offering more flexibility than corporations. For instance, LLCs may elect to be taxed as an S or C corporation, partnership or may be a disregarded entity for federal purposes is a single member LLC (SMLLC).
Corporate Tax Planning, Preparation, and Compliance in California
Income, payroll, employment, sales, excise, and other taxes can create a web of confusion, particularly when the business is going through major financial changes due to factors like mergers, bankruptcy, or expansion. The Tax Law Office of David W. Klasing can manage these issues for you, so that you can focus on launching, selling, or growing your business as efficiently as possible.
Filing Corporate Tax Returns
Like individual taxpayers, corporations are responsible for filing a number of tax forms with the IRS, in addition to California tax authorities like the Franchise Tax Board (FTB) or Employment Development Department (EDD). For example, S and C corporations may be required to file Form 1120 (U.S. Corporation Income Tax Return), Form 1120-W (Estimated Tax for Corporations), Form 941 (Employer’s Quarterly Federal Tax Return), and Form 940 (Employer's Annual Federal Unemployment (FUTA) Tax Return).
Beyond merely meeting IRS tax filing requirements, corporations must also consider issues like whether workers are being classified properly, whether accurate books and records are being maintained, and how their existing tax strategies might be impacted by the Tax Cuts and Jobs Act – which, for instance, lowered the corporate tax rate from 35% to 21%. Our business tax attorneys and CPAs are skilled in all areas of corporate tax planning and compliance, enabling us to provide services that are personalized to the unique needs of your company.
California Sales and Use Tax Compliance
If you sell goods in California, store inventory in California, lease equipment in California, or otherwise do business in the state of California, including online sales, you may be required to file and pay California sales taxes, which are enforced and collected by a state tax agency known as the California Department of Tax and Fee Administration (CDTFA). With California sales tax audits increasing in number, now is the time to ensure that your San Diego business is prepared – and to make sure you are complying with the law.
Foreign Bank Account Reporting (FBAR) for Corporations
Domestic business entities, including domestic corporations, are subject to foreign income reporting requirements established by federal laws like the Bank Secrecy Act (BSA) and Foreign Account Tax Compliance Act (FATCA). These laws respectively require U.S. persons and specified domestic entities to report, when certain monetary thresholds are exceeded, foreign financial accounts and offshore taxable income-generating investments or businesses.
For example, if you have an interest in a foreign corporation, you may need to report the assets by filing Form 5471 (Information Return of U.S. Persons with Respect to Certain Foreign Corporations), Form 8938 (Statement of Specified Foreign Financial Assets), or other tax documents. You may also be required to file an FBAR (Foreign Bank Account Report), also known as FinCEN Form 114, to disclose signature authority over, or financial interest in, an overseas account whose value surpassed $10,000 at any time during the year. It is in your best interests to discuss your foreign account disclosure responsibilities with an experienced FBAR attorney, as noncompliance can trigger steep fines.
San Diego Corporate Tax Lawyers and CPAs for C and S Corporations
Serving California and out-of-state S corporations, C corporations, and limited liability companies from our conveniently located San Diego office, the CPAs and business tax attorneys at the Tax Law Office of David W. Klasing are dedicated to making corporate tax compliance simpler and more tax-efficient. Providing representation before state and federal tax authorities, we can identify strategies to mitigate penalties and avoid fines, while helping your business to utilize the tax code more effectively.
Contact us online to arrange a reduced-rate consultation or call our San Diego tax office at (619) 780-2538. You can also reach us by contacting our main office at (800) 681-1295. Please note that consultations at our San Diego 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: