Tech companies may do things like write tax software or run websites for tax services, but the vast majority of business owners in the tech industry could use help with their taxes. Running a business is difficult, and having a tax attorney review your business planning and help you through tax season is important for the health of your company.
For help with your business taxes for your tech company, contact the Roseville tax lawyers at the NewPoint Group today. Our attorneys offer free consultations to help you understand your tax options, help you reduce your tax burden, and work to protect your bottom line. For your free consultation, contact our law offices today at 1-800-358-0305.
Tax Help for Tech Companies in California
One of the first things you can do with your company to help protect from a higher tax burden is form your company as the right business entity for your situation. Many people go into business together and choose to run their company as a partnership. For some tech startups, this may be a good move – but the partners will be personally taxed for their partnership’s income. It may be better to file the paperwork to establish your company as a corporation or an LLC. “C corps.,” “S corps.”, and “Limited Liability Corporations” (LLCs) are all taxed as a separate entity. This insulates you, the owner or partner, from facing personal tax burdens for your company’s performance.
Finding the right deductions and tax credits for your company can be a huge help when tax season comes around. You may be able to write-off hundreds of “necessary business expenses.” Much of the physical tools and software tools required to run a tech company can be expensive. Talk to a tax professional before you resort to limiting your team to working on 5-year old PCs to save money. Many of the hardware and software costs you face can be written-off on your business’ taxes. Getting guidance on these kinds of issues can help you equip your team with the tools they need for success.
Other credits and deductions may be available for strange things you might not expect. Complying with renewable energy plans or operating a “small business,” for instance, can help you save money on your taxes.
In addition to finding these credits and opportunities to lower your taxes, you also have to file your taxes. If you have never filed taxes as a business before, you may want the advice of an experienced tax attorney when doing so. Do not leave your business vulnerable because of errors or unknown variables in your tax documents – hire one of our tax attorneys to help your company file.
Tax Compliance Advice for Tech Start-Ups
Understanding the way that your product or service is taxed may be difficult. In some situations, your company may be responsible for collecting sales tax and properly accounting for client or customer payments. Failing to do so can open your business up to potential audits, tax penalties, and other issues with the IRS. Some of the most successful tech companies have started with a few friends in a garage. However, issues like payroll and wages, proof of citizenship, and other employment issues are not as casual. It is vital that your company properly pay payroll taxes, and issue proper documentation on employees.
One special problem prevalent in the tech industry is the taxation issues surrounding stocks and securities. It may be difficult to recruit high level talent for your business if you are just starting out. Some start-ups get great funding, but even well-funded tech companies may offer stock options rather than high paychecks. If you want to issue stock as part of your pay, you still need to ensure that you follow taxation and securities rules for them.
While owners and employees may be able to get stocks in their company, doing so needs to follow IRS guidelines. If you fail to properly report these securities transactions, you could be committing serious errors, fraud, or even crimes. There are rules about when these stocks are allowed to change hands, how they transfer, and how they must be reported to the government. There may even be ways to save your small business money by activating lower tax rates for some qualifying stocks.
Talk to an attorney about how to best keep your tech company in compliance with important tax rules for day-to-day operations.
Corporate Attorney for Technology Companies in California
If you are considering starting a tech company or already run a business in the technology industry, talk to an attorney. The Roseville corporate tax lawyers at the NewPoint Group advise tech businesses on the best practices for saving money on taxes, complying with state and federal tax rules, and paying their taxes. If you need help with business tax planning or audit defense during an IRS audit, call our lawyers today at 1-800-358-0305 for a free consultation.
“NewPoint Law Group has the expertise and experience to navigate the tax code and assist taxpayers in limiting their tax liability.”Stephan M. Brown, Esquire