04 July 2013

Three Reasons to Hire a Small Business Attorney at Tax Time

Tax season is a difficult time for all of America, especially in the private sector. Even within the private sector, things are more difficult for some than others. Small businesses are usually in this group.

If you didn’t already know, the IRS has more than 1,700 pages of instructions on how to properly pay and files taxes as a small business. Most of this fine print is difficult legal territory, but as an emerging small business, you can’t afford to make a mistake.

That’s why it’s worthwhile to consider hiring a local small business attorney in St. Cloud at tax time. If you’re not convinced already by that daunting stack of instructions, check out these three reasons to hire a tax attorney.

1. Tax Law Is Tricky
As a small business owner, you probably didn’t spend much time contemplating law school. As a result, the cross-sections between federal, state, and local taxes can be confusing. Even if you are legally minded, researching the fine points of these laws requires time, and time is money.

On the other hand, a small business attorney is well-adept at recognizing which taxes you are responsible for and where to pay them. If you entertain any confusion at all in this matter, a small business attorney can help.

2. The Definition of “Employee” Is Sometimes Unclear
Do you know which of your employees are actually employees and which are independent contractors? If you employ full-time employees, you’re responsible for registering them with the IRS and withholding certain amounts of money from their paycheck each pay period.

If you employ independent contractors, however, you don’t need to worry about their taxes. You do need to supply the IRS with detailed information on their contract status and payment, however.
Because the line between employee and independent contractor is blurry, a small business attorney can help. He or she can also help you decide whether it’s best to classify employees as independent contractors or salaried employees.

3. You’re Entirely Responsible for Your Taxes
The IRS doesn’t believe in sins of omission. If you messed up while filing your taxes, you can’t plead ignorance and get a stay of execution. You’re fully responsible for your tax filings, no matter how complicated or inane certain sections of the tax code are.

Fortunately, small business attorneys are usually well-adept in tax code and can help you file your taxes legally and responsibly. This safeguards you from the inconvenience and disgrace of an audit.

Finding a Small Business Attorney
If you’re now sure a local small business attorney in St. Cloud is right for you and your company, start asking around for recommendations.

If that turns up empty, try contacting your state’s local bar association for local listings. You can even look online.

By putting forth that bit of effort, you’re sure to be well-covered during tax season and during all the rest of the year.


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