Improper Business Structuring
Business owners from the smallest one-man dog walking business to the largest of corporations have fallen victim to tax debt. The fact is that in business the accumulation of tax debt is often the result of attempts to remain profitable. The owners of a business sometimes must face a choice; stay afloat, or pay taxes.
For a business to have the ability to pay its taxes, it must have the funds available to pay the IRS and also pay all of its other expenses. Only then is the business profitable. Too many times we have heard from clients who believe that business is okay, even though their small business is accumulating tax debt equal to their own paycheck each year.
Many businesses are in the red simply because they are not structured properly. Many businesses can be restructured to allow deductions from taxable income that will put the business in the black! The variables that determine how to structure are too difficult for many business owners to figure out without help from an adviser. You can't just make an assumption that one form is better than another.
It's not a decision to be entered into lightly either, or one that should be made without sound counsel from business experts. It is very important for business owners to seek expert advice from business professionals when considering the pros and cons of various business entities.
We have heard horror stories from people who, in hindsight, wish they had taken the time and spent the money to get expert advice up front. Here at ITG we offer expert business development advice and will assist you not only in resolving your past due tax matters but in setting up a proper business structure. We can even assist you with bookkeeping, estimated quarterly taxes, tax returns, and the day-to-day operation of a business, if necessary.