It’s a good idea to have your lawyer in Tampa help you decide on how to structure your business. It could end up saving you money in the end. Speak with your local Tampa lawyer about how incorporating can protect your assets. Incorporated companies have some significant tax benefits that can help reduce your company’s tax liability. Here are a few ways how.
- Business Structure
As mentioned before, speak with your lawyer in Tampa about how to structure your business. Without any official structure, your business is most likely to be labeled as a sole proprietorship. But, incorporated business might benefit from a lower tax liability. Depending on how you structure your business, the tax benefits change. It may not be worth incorporating if the costs outweigh any tax benefits. Make sure to have these elements covered in your business plan in order to ensure that your business fully benefits from whatever structure you choose.
Make sure to have a professional helping you out. Hiring a lawyer to help with all the legal documents is a must. They can help ensure that your legal business structure is in order as well as ensure that you are protecting your assets. They can advise you on how each structure works. They will also be able to tell you about the different liability issues that each business structure offers.
Now that you have a lawyer, you should also have an accountant. Your accountant can help with lowering your tax liability by advising which business entity works. They can also help plan for the short and long term. Accountants can advise you on the tax code restrictions for some business entities and why or even when you should incorporate. An accountant can help you with the nitty-gritty of tax preparation in order to give you the most effective business structure.
It is always important to keep records for your business. But they will be a godsend when it comes to reducing your taxes and avoiding tax audits. Having a very detailed ledger will help your business in reducing its tax liability.
- Timely Manner
Have your tax returns prepared correctly and filed on time. This will lower the chance of the IRS flagging your business for penalties and interest. On the off change that you can’t file your tax return on time, then you will need to do two things. The first is that you will need to file an extension. The second thing is that you will have to pay an estimate of the taxes due before the deadline. If you cannot pay on time, then the IRS can offer you some programs to help you out. Whatever the reason is for you not being able to pay, it’s important that you still file your return by the deadline because the penalties are quite severe.