Domestic and International Business and Tax Attorney in Santa Barbara, CA
The Tax Law Office of David W. Klasing is an award-winning boutique California tax law and accounting firm. Led by founder and attorney-CPA David W. Klasing, our team of dedicated, knowledgeable CPAs and CPA Candidates, bring decades of international and business tax experience to every matter we handle. From providing entity selection and business formation services, to assisting individual taxpayers with FATCA and FBAR compliance, to working with foreign companies to establish more cost-effective tax planning strategies, our Santa Barbara tax attorneys offer comprehensive representation to help you, your family, and your business thrive financially.
At the Tax Law Office of David W. Klasing, our mission is to help each of our clients mitigate their tax liabilities, reduce fines and penalties, and engage in sound, strategic tax planning – all while focused on careful adherence to federal tax laws, business regulations, and international treaties. If you need assistance resolving a business or international tax issue, our Santa Barbara tax professionals are here to provide support you can trust.
Santa Barbara Business, Payroll, and Employment Tax Lawyers
Our business tax attorneys work with all types of entities and organizations, ranging from small startups and family-owned businesses to middle market corporations and pass-through entities, including S corporations, limited liability companies (LLCs), sole proprietorships, and partnerships, our team provides the full spectrum of tax, accounting, and bookkeeping services for domestic and foreign companies. Tax and financial matters that we can assist your business with include, but are not limited to, the following:
- Business entity selection
- Business succession planning
- Business transactions
- California employment tax audits
- California sales tax audits
- Employment tax
- Tax havens
- Worker classification audits
Whether you need help getting prepared for a tax audit, have questions about your duties to pay self-employment taxes as a sole proprietor, or have other questions related to business, employment, or payroll tax planning and compliance, count on the Tax Law Office of David W. Klasing for nuanced counsel.
Business Entity Selection
Like many other business tax issues, the question of entity selection has been reshaped by the Tax Cuts and Jobs Act (TCJA), a sweeping tax reform bill passed by Congress in 2017. For example, the TCJA lowered the corporate tax rate from a maximum of 35% to a flat rate of 21%, potentially making the C corporation structure more deceptively attractive despite the drawbacks of double-taxation. On the other hand, the TCJA also created a new deduction for pass-through entities, which may allow pass-through owners to exclude up to 20% of certain business income.
There are pros and cons to all business structures, depending on your objectives and resources. Our business entity selection lawyers can help you navigate the TCJA to make the right decision.
Business Succession Planning
Business succession planning is the practice of establishing a succession plan, or “exit plan,” which outlines how the business should be sold or gifted in the future. Having a solid exit plan eliminates the confusion and uncertainty that can arise when a business changes ownership. Our business succession planning attorneys will evaluate factors like your retirement plans, your need for liquidity, and the company’s projected future to help you develop a detailed exit strategy that makes sense for your business and estate.
Before selling or purchasing a business, it is in your best interests to have an experienced business transactions lawyer carefully scrutinize the underlying contracts. Depending on whether you are the seller or purchaser, it may be necessary to perform due diligence, identify and address unpaid tax liabilities, or take measures to ensure successful collection of the payment you are owed. Whether you are considering a sale or a purchase, our tax attorneys can help you avoid needless losses by identifying and assessing potential risks and challenges and limiting taxation in the event you are selling.
International Tax Attorneys for U.S. Expats, Citizens, and Foreign Companies
The United States uses a system of taxation known as “citizenship-based taxation.” Consequently, U.S. citizens – including those not physically present in the United States – must comply with the Internal Revenue Code (IRC), as well as a host of additional treaties and laws, such as the Foreign Account Tax Compliance Act (FATCA), that create tax requirements unique to international taxpayers.
If you are a dual citizen, a recent immigrant or expat, an American with offshore bank accounts, a servicemember stationed overseas, a frequent international traveler, the owner of a multinational company that does business in the United States, or a foreign business owner who is considering opening a U.S. branch or forming a U.S. entity, you could be impacted by international tax and income reporting laws. Discuss your situation with our experienced international tax law attorneys to make sure that you are complying with the law – and making the best possible utilization of the IRC.
Tax Planning Services for Foreign Businesses
Multinational companies are subject to a vast and complex array of intergovernmental treaties. From a tax standpoint, foreign companies must be nimble enough to successfully comply with a diverse range of tax systems, while consistently making smart and efficient use of the pertinent laws and regulations.
By outsourcing your company’s tax, bookkeeping, and accounting services to our tax firm for international businesses, your company can develop new, or streamline existing, tax planning strategies to be more cost-efficient. Our tax planning services for foreign companies focus on the most critical issues facing multinational entities today, such as transfer pricing penalties, IRS tax filing requirements, procedures for U.S. entity selection and formation, and the tax treatment of effectively connected income.
FATCA and FBAR Tax Help
You are already aware of the duty to annually report and pay taxes on U.S. income, including business income. What you may not realize is that you could also be obligated, depending on certain factors, to report your foreign income, such as funds you have wired to, or deposited into, a foreign checking, savings, or business account. If this describes your situation, there are two tax requirements you must be made aware of:
- The Foreign Account Tax Compliance Act (FATCA) – FATCA is a relatively recent law passed by Congress in 2010. FATCA establishes two requirements, one of which directly impacts taxpayers:
- First, FATCA requires foreign banks to report American account holders to the U.S. government. Therefore, taxpayers who bank abroad should never assume that their identities or assets will remain secret from the IRS.
- Additionally, FATCA requires U.S. taxpayers to file Form 8938 (Statement of Specified Foreign Financial Assets) if their aggregate foreign income exceeded $50,000, even temporarily, during any point in a given tax year.
- The Foreign Bank Account Report (FBAR) – Unlike FATCA, the FBAR is not a law, but a tax document. The law that requires taxpayers to file an FBAR is the Bank Secrecy Act (BSA). With some exceptions, you must generally file an FBAR if:
- You own or control a foreign bank account.
- The contents of the account (or accounts) exceeded $10,000 in aggregate at any time during a given tax year, even temporarily.
There are serious penalties for noncompliance with FATCA and/or FBAR requirements. Therefore, it is in your best interests to file the appropriate forms in a complete, accurate, and timely fashion. If previous violations have already occurred, it is critical to reenter compliance as soon as possible in order to hold financial penalties to a minimum.
International and Business Tax Lawyers in Santa Barbara, CA
Whether we are providing tax audit representation, or non-filer assistance – FBAR consulting services, or assistance with voluntary disclosure – entity formation advice, or legal guidance on corporate tax compliance – our accomplished, award-winning tax team takes pride in delivering a superior level of service and commitment to each of the businesses and individuals we work with. We stay ahead of the curve on the latest economic and legislative developments, from cryptocurrency regulation to impacts of the TCJA, to help give you and your business better tax and financial insights.
If you need assistance with a business or international taxation issue, look to our zealous tax professionals for comprehensive, cutting-edge guidance. To set up a reduced-rate tax consultation, contact the Tax Law Office of David W. Klasing online, call (800) 681-1295, or (805) 200-4053 today.