Having a business attorney with tax experience is always an advantage to a business, large or small. There are many complex issues that will arise in any business setting. Having a business planning attorney with the practical and legal experience to understand the challenges your business may face is vital to the continued viability of your business.
Accordingly, whether you are just starting out, or if you are a mid-size company in need of a review, a business planning attorney is the place to begin in order to reach your business goals.
Business planning requires strategy, planning, and formation documents to establish how a business is created, taxed and operated. When starting a business, it is important to first determine how the entity will be structured. Will you form an LLC or a corporation? Will you choose to be taxed as a partnership or as a corporation? If you choose a corporation, should you make an S-election?
Yes. The formation structure of your business directly affects how your business is taxed and your income tax liability. Working with an attorney from the organization of your business, will save you money in the long run.
The recently passed Tax Cuts and Jobs Act is the largest overhaul of our tax system since 1986. A major part of this legislation is the newly created §199A which creates a new 20% Qualified Business Income Deduction for certain businesses. Another major part of this legislation is the new drastically reduced corporate tax rates. The business structure you choose directly affect the amount taxes your business will pay. You need an attorney with an understanding of these laws to help you pay the least to the IRS.
Most people consider Tennessee to not have an income tax. But this is not entirely true. Tennessee has Hall Income Tax which taxes certain interest and dividends. This tax is reduced to 3% for 2018 and will be fully repealed in 2021. Additionally, many businesses have to pay a 6.5% tax on income for the Tennessee Excise Tax. The entity you choose directly affects the Tennessee taxes you will have to pay.
The Law Offices of John R. Foust have been helping clients with business strategies for years. John prides himself on digging deep into each client’s business needs and goals in order to provide individualized, top-quality business planning advice. John is dedicated to ensuring that your business, large or small, has precisely the structure that best fits your needs.
Prevent unnecessary costs at the beginning of your business by starting a consultation with John Foust. Whenever you need sound legal advice, John will be glad to help.