Business and Corporate Tax Issues

If you are a business owner or representative for a corporation, you know that a tax dispute or issue can seriously impact your investments and interests. In addition to liability, an audit could have a long-term impact on your productivity and future opportunities. At Insight Law in Seattle, Washington, we help business and corporate clients reduce tax liability and resolve disputes with the IRS with minimal penalties and costs.

Insight Law also handles business tax planning, entity formation, compliance issues relating to tax-exempt organizations, complex business tax return preparation and other tax and business legal services.

Ongoing Counsel and Advocacy for Business Clients

From formation and startup through the life of your company, our attorneys can assist with all aspects of business operations implicated by the tax code. We will take the time to understand your unique business objectives, determine the appropriate structure to meet your needs and ensure that you are in compliance. In the event of a complication or dispute, we can assist in reducing penalties and protecting you against unfounded liability.

Our Seattle business and corporate tax issues attorneys focus on the complex areas of tax litigation and IRS disputes and assist with all of the following:

• Formation of business: New business counseling, formation of C corps, S corps, LLCs and tax planning
• Audits: Issues involving back and unpaid taxes, transactions under investigation, substantiation of investments, documentation of transactions
• Employment tax and trust fund penalties: Employment tax issues, withholdings, accountant or employee liability, appeals
• Tax litigation and penalty relief: Tax disputes, IRS appeals, state and local tax liabilities, collections and settlements

Frequently Asked Questions About Business and Corporate Tax Issues

When business owners have questions, we aim to provide clear, concise answers. Here are some of the questions our attorney hears most often:

Do I need a Federal Tax Identification Number or Employer Identification Number (EIN) for my business?

Typically, yes, you will need an EIN if you own a partnership, a limited liability company or your business is incorporated, even if you do not have employees. Even if you’re a sole proprietor with no employees, having one can be beneficial for separating your business and personal finances.

Do I need a sales tax number for my business?

You will generally need a sales tax number if you’re going to sell products or services. A sales tax number is acquired through the Washington Department of Revenue, and you will need to register your business and begin making regular payments as you operate.

Why is it important for a business to be tax compliant?

Failure to comply with tax laws is a violation of your legal obligations, and that can result in penalties, fines and other adverse legal actions. Noncompliance can also raise “red flags” that lead to audits and investigations, which can be time-consuming and disruptive. In addition, many lenders and investors look at a company’s tax compliance status as a way of assessing a company’s credibility and financial health.

What are the main types of business taxes?

This is a very complicated area of any business operation, and the type of entity you operate will dictate what taxes you need to file. In general, you may need to pay:

• Income taxes
• Payroll taxes
• Business license taxes
• Sales and use taxes
• Estimated tax payments
• Self-employment taxes

This is merely an overview, however. A consultation with an attorney can help you understand the specifics of your situation.

What federal tax forms do I need to file for my business?

The exact federal tax forms you will have to file depend largely on the nature of your business and how you choose to structure it. Some possibilities include:

• Schedule C for sole proprietors and LLCs filing as partnerships
• Form 1120 for C-corps and LLCs filing as C-corps
• Form 1120S for S corps and LLCs filing as S corps
• Form 11065 for partnerships and LLCs filing as partnerships

Because it is so important to get these filings correct, it is always wisest to have an experienced attorney’s assistance with the process.

Minimize Liability and Penalties, and Protect Business Investments

If you are a business owner facing an audit or IRS investigation or need more generalized advice, it is critical to consult with an experienced attorney as soon as possible to protect your rights. A lawyer can discuss your case, identify your potential liability, explore your options for penalty relief, help prepare defenses and ensure your future business interests are better protected.

Call 206-922-8078 or contact us by e-mail to arrange an initial consultation or case evaluation directly with our attorney. Our Bellevue, Washington, employment tax attorney provides top-notch client-focused legal representation at an excellent price.