Owning a business is no easy task and whether you’re a single employee selling your services as a freelancer, own a small, specialty boutique with a handful of employees, or are working on building a corporate empire, there are plenty of challenges that come with owning and operating a business. One of these unique challenges is taxes.
While the tax system can be leveraged to help you nurture and grow your business, paying business taxes is a much more complex process than your standard W-2 and to truly reap all the benefits it’s recommended to consult the services of a business tax lawyer in Danbury, CT. Luckily, the team at Barlow Tax Solutions has years of experience working with businesses and business owners.
Different Types of Business Taxes
Depending upon your business and the services/goods it provides, there can be several different types of business taxes to be aware of.
- Gross-Receipts Tax: This tax is applied to a company’s overall gross sales that exclude a business’s expenses such as cost of goods as well as compensation.
- Corporate Franchise Tax: This tax is implemented by a state onto corporations, LLCs, and partnerships and is generally calculated using three methods: a simple flat fee, a fee calculated by the company’s net worth, and a fee that’s based on the company’s gross receipts or the overall amount of business the company performs in that state.
- Employment Withholding Tax: This is a type of tax that most people are aware of as most workers start out with a W-2 that tells them how much they have paid in taxes. For a business, however, this form will be a W-4 that’ll tell you how much you should withhold from your employee’s paycheck.
- Excise Tax: This type of tax is a tax that’s imposed upon numerous goods, services, and activities. Essentially, this tax deals with any duty or goods that is levied when they’re produced versus at the time of sale. Businesses that usually have to pay this tax includes any businesses dealing with airline tickets, fuel, heavy machinery, tobacco, etc.
- Value-added tax (VAT): In some countries, this tax is also known as a goods and services tax and is a type of tax that will be assessed every year. Essentially, this tax is calculated by the price of a product or service during each stage, i.e. production, distribution, and the final sale to a customer.
With so many types of taxes to be wary of it’s crucial to enlist the services of a business tax lawyer in Danbury, CT.
Ways a Lawyer Can Help
There are many ways that a business tax lawyer can help. If you’re in the early stages of establishing your business having a lawyer present can help you formulate a plan for how you’ll handle your business taxes and what you should expect. Additionally, it’s possible that you may run into some legal trouble such as being behind on paying taxes, undergoing audits, losing profits, etc. A business tax lawyer in Danbury, CT will be able to help mitigate issues that you’re facing and help you and your business get back on two feet. Contact Barlow Tax Solutions today to learn more about the services they offer!