Common Tax Planning Errors

Many small business owners make mistakes that increase tax liability or create compliance issues. One frequent error is failing to separate personal and business finances. Mixing accounts can complicate record-keeping, make audits more difficult, and reduce the ability to claim legitimate deductions.

Other common errors include neglecting estimated tax payments or failing to track deductible business expenses. Small businesses often overlook deductions for retirement contributions, equipment purchases, or business-related travel. Additionally, changes in tax law or misunderstanding credit eligibility can result in higher taxes and missed opportunities for savings. According to the IRS Small Business & Self-Employed Tax Center, staying aware of potential deductions and tax responsibilities throughout the year is essential to avoid costly mistakes.

Timing Matters

Tax planning is not just a year-end activity. Strategic planning throughout the year enables business owners to manage cash flow effectively, optimize deductions, and prepare for potential audits. Waiting until December to address taxes can lead to rushed decisions, overlooked deductions, and missed opportunities for strategic planning.

Year-round monitoring of income, expenses, and financial transactions also helps prevent surprises at tax time. Adjusting estimated tax payments, reviewing payroll taxes, and updating bookkeeping practices regularly ensures compliance with federal and state tax regulations. Proactive planning reduces the risk of penalties and allows business owners to allocate resources more effectively for growth initiatives.

Working With Professionals

Partnering with experienced attorneys and accountants is one of the most effective ways to avoid tax planning errors. Professionals can provide guidance on entity structure, deductible expenses, retirement contributions, and compliance with changing tax laws. They can also help navigate audits, negotiate with tax authorities as needed, and implement long-term strategies to minimize tax liability.

France Law Firm offers comprehensive guidance for small business owners on business tax planning. Our team works closely with clients to address unique financial circumstances, protect assets, and plan for growth. By consulting professionals early, business owners can focus on running their operations without worrying about legal or financial pitfalls.

Special Considerations for Small Businesses

Certain tax issues are particularly relevant for small businesses. Owners should understand the implications of their business structure, whether it’s a sole proprietorship, LLC, or corporation, as each has different tax responsibilities. Additionally, managing payroll taxes, sales taxes, and state-specific requirements can be complex, but it is essential for avoiding penalties.

Implementing organized financial systems and maintaining accurate records throughout the year can help mitigate risks. Planning for retirement contributions and potential charitable deductions can also provide significant tax advantages for both owners and their employees.

Key Takeaways

Avoiding tax planning mistakes requires awareness, preparation, and professional support. Regular reviews of finances, updated knowledge of tax law, and collaboration with experts help ensure that your business remains financially healthy and compliant. Small business owners who take a proactive approach to tax planning not only reduce liability but also free up resources to invest in growth, employees, and long-term goals.

By addressing tax issues early and integrating them into your overall business strategy, you can protect your assets, optimize financial outcomes, and confidently navigate the complexities of small business ownership. France Law Firm is here to provide expert guidance to help you stay compliant and make informed financial decisions. To learn more, schedule a consultation with our team today.

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While starting a new business is exciting, you have many responsibilities, including legal and tax compliance. Understanding business taxes is one of the most significant challenges for new entrepreneurs. The process can seem overwhelming, but with the proper guidance from experienced business and tax attorneys, you can minimize risk. Avoid costly mistakes by contacting France Law Firm to help with business tax navigation.

Choosing the Right Business Structure

The type of entity you choose for your business, whether it is a sole proprietorship, limited liability company (LLC), non-profit company, partnership, or corporation, directly impacts your tax obligations. For example, a sole proprietorship may be the easiest to set up and handle taxes, but it exposes your personal assets. LLCs and corporations provide liability protection and more options for growth, but have complex tax rules.

For example, the Internal Revenue Service (IRS) taxes corporations as separate entities, so you risk double taxation when you distribute profits as dividends. A business law attorney can help you choose the best entity that aligns with your goals while minimizing risk.

Federal, State, and Local Taxes

Every business owner must comply with federal, state, and local tax requirements, each with its own set of rules. Federal taxes include income tax, payroll tax, and self-employment tax.

State tax laws include sales taxes and business license fees. You may also have alcohol and tobacco taxes or the “hotel tax,” a transient rental tax.

Local governments may also require taxes in the form of licenses, franchise taxes, or permits. Location and business type determine the type and amount of tax local governments impose.

Recording and Documentation

Diligent documentation is the key to successful business tax navigation. Document each transaction, whether it’s a sale, expense, payroll transaction, an asset or a deduction. Accurate records can make tax filings easier and support claims during audits. It can also reveal potential savings.

A business tax attorney helps you implement proper documentation procedures and can educate you and your staff on compliance. The attorney can also prepare documentation during a dispute or audit.

Deductions, Credits, and Incentives

Small businesses can benefit from many tax deductions, such as startup expenses, home office costs, supplies, equipment depreciation, insurance, travel, and professional fees. You may also qualify for credits for certain activities, such as research and development, hiring, implementing energy-efficient upgrades, and participating in local or federal incentive programs.

Not every expense is deductible, and some credits involve strict qualification rules. Overestimating deductible expenses is a standard error. Business tax attorneys can help protect you from red flags and ensure you claim all your legitimate savings while minimizing IRS challenges or audits.

Building a Long-Term Tax Strategy

Tax planning is not just for tax season. It’s something you need to do throughout the year. New entrepreneurs should schedule quarterly reviews with a business tax attorney to reassess business goals and financial structure. Proactively planning for credits, deductions, estimated payments, changes in law, and possible restructuring can significantly reduce tax liabilities.

A strong tax strategy also minimizes cash-flow squeezes and keeps investors, lenders, and others confident in your business’s viability.

When to Call a Business Tax Attorney

You should contact a business tax attorney as quickly as possible in certain circumstances, including:

• Your business faces complex or multi-state tax filings, especially after seeing growth or expansion.
• You received an IRS notice or audit request.
• You have concerns about compliance.
• You are planning a merger or acquisition, or are onboarding investors.
• You are structuring employee compensation, stock options, or deferred benefits.
• Navigating international tax exposures, including potential double taxation.

Contact France Law Firm Today to Take Control of Your Business Taxes

Navigating business taxes is an essential component of entrepreneurship. When you understand legal requirements, maintain accurate records, and work with skilled business law and tax attorneys,  you can significantly increase your chance for success.

Don’t leave your business’s financial health to chance. Contact an experienced business tax attorney to develop compliance strategies and identify saving opportunities.

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Starting a business in the complex market in 2025 can be exciting if you know how to avoid legal pitfalls and regulatory hurdles. Ignoring them can sink a company—even the most promising—in a heartbeat. From the type of entity you choose to data privacy, understanding the key legal considerations can help avoid costly mistakes and create a solid foundation. An experienced business law attorney can guide you through starting a business.

Choosing the Appropriate Business Structure

Your business structure impacts personal liability, taxes, fundraising, and even future growth. Selecting the correct business entity prevents restructuring later, which could be expensive.

Business entities include:

• Sole Proprietorship: No personal liability protection. Taxes pass through to your taxes.
• Partnership: Easy to set up, but you share risks and profits. It has the potential for internal conflict.
• Limited Liability Company (LLC): This type of company is very flexible and offers liability protection depending on how you set it up. It is increasingly popular for small and medium businesses.
• Corporation: A separate legal entity, whether a C-Corp or S-Corp, which usually means no personal liability. However, it has more regulations and paperwork.

Business Registration and Brand Protection

Once you choose a name, register your business—even if it’s a sole proprietorship—with Florida’s Secretary of State Office to protect the name and your brand. You will also need a federal Employer Identification Number (EIN), which provides another layer of separation between your business and you personally.

Before registering, conduct a thorough search to ensure your chosen business name does not match another. It confuses customers—you could send yours to the other business, and the different business owner could file a lawsuit against you for using their name.

If you have intellectual property, such as formulas or a logo, consider trademarking it to protect your brand. Even unintentional infringement could result in legal disputes and forced rebranding.

Licenses, Permits, and Regulations

Many businesses need specific licenses and permits for various industries, including restaurants, healthcare providers, financial services, hairdressers, etc. Additionally, you must abide by any regulations that affect your industry. Finally, you must ensure your chosen location has the appropriate zoning for your business.

Operating without permits or obtaining the wrong zoning can lead to fines and forced closure.

Employment Law

You must understand and comply with state and federal employment laws. Good hiring practices include compliant offer letters and employment contracts. You must also know wage and hour laws for Florida and the United States, including minimum wage, overtime, and recordkeeping laws.

Workplace policies can also cause legal issues. Outline required workplace practices, including anti-discrimination and harassment policies in your employee handbook. An experienced business attorney can guide you through understanding legal requirements and draft compliant employee-related documents.

Contracts

Contracts are the foundation of your business. Each type of relationship, including clients, vendors, partners, and employees, should have a clear written contract to protect you and them. Key clauses should include the scope of work, payment terms, termination conditions, intellectual property ownership, and dispute resolution mechanisms.

Generic templates available online can expose you to risk. Tailor contracts to your industry and unique business circumstances.

Additional Considerations

The scope of legal considerations is broad for most businesses. Other factors that are key to a successful business include:

• Data privacy and cybersecurity
• Data collection laws
• Breach notifications
• Intellectual property issues, including patents, trademarks, and copyrights
• Non-disclosure agreements
• Tax obligations and compliance

You may have to register with tax authorities at the federal, state, and local levels for various taxes, including employment taxes such as FICA and Social Security, sales taxes, and local taxes.

Don’t Take Chances: Experienced Business Law Attorneys Can Help Set Up a Business

Launching a business regardless of economic times means navigating complex legalities. Planning ahead of time to ensure you set up your business correctly goes a long way toward its success, as it allows you to create a solid foundation.

Call 850-224-1040 or complete our online contact form to speak with the experienced business law and tax attorneys at France Law Firm.

The post Key Legal Considerations When Starting a Business in Today’s Market appeared first on France Law Firm.

Cultivating Strong Leadership

For a business to go from one generation to the next, it must nurture the next generation of leaders to take over the position of its current leaders. The new leaders must be as strong and knowledgeable as the current leaders, or the business could fail. Implementing mentorship initiatives and leadership development programs and preserving knowledge about the business all lead to a smooth transition.

Adaptability and Innovation

New technological advancements constantly affect the business landscape. A successful business must adapt to advancements and consumer preferences, or it could fail. Ensuring that future generations also embrace adaptability and innovation provides a better chance of future generations remaining successful.

Fostering a Strong Culture for Your Company

Your culture is the center of your business and a good part of its success. Your customers are loyal to you, in part because of your culture – you have the same beliefs they have. When you hire employees with the same values, they further that culture and share the same values as your customers, creating a bond between the employees, business, and customers.

Prioritizing this same culture through those who will eventually take over the business increases the chances of the company remaining successful through the generations.

Diversification

As years go by, new markets appear. New generations can diversify into new markets, whether new products and services or new geographic areas, mitigating the risk of failure in future generations. Adding new products and services ensures you remain relevant through the years, as you are spreading risk over multiple geographic regions and sectors.

Customer Relationships

Without customers, you don’t have a business. Just as you nurture future generations of leaders, customers nurture future buyers. You keep customers by listening to your customers’ feedback, building trust, and investing in personalized service. You can anticipate your customers’ needs.

A child sees his or her parents patronizing your business and will often continue patronizing that business when they become older—as long as the business continues to provide the excellent service the parents enjoyed.

Planning for Succession

Above anything else, you must plan for succession to preserve it for future generations. Some businesses plan for multiple generations, which can be done through trusts as long as the company stays in the family. A Florida estate planning attorney can help you create an estate plan to preserve your business for future generations.

Additional documents required to protect your business for future generations include financial and medical powers of attorney. Florida has several types of trusts that can protect your business.

For example, should you become incapacitated, can the right trust seamlessly transfer control of the business to your adult children or another trusted family member or friend to manage until you are no longer hindered? A trust can also protect your business against certain creditors, such as hospitals and nursing homes.

Create a Comprehensive Estate Plan to Protect Your Business

Anything can happen at any time. Protecting your business from excessive taxes, creditors, and lawsuits significantly minimizes the risk of failure and allows future generations to enjoy the same benefits of business ownership you have. Mrs. France handles estate planning, probate, federal income tax planning, and business formation.

With experience in all three areas, France Law can draft a comprehensive estate plan to help protect your business from creditors and excessive taxes and ensure a smooth transfer to the next generation.

Contact France Law today for an estate planning consultation for your business.

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Taxes for 2023 and 2024

You may not think the upcoming changes for 2024 are important right now since you will be filing for 2023. However, those changes may affect your long-term tax plans, whether for your estate or your business. France Law Firm has an estate planning attorney who is also a business tax attorney who can help ensure your estate plan, business plan, and tax plan all work together to benefit you now.

Taxes for 2024 apply to the tax returns you file in 2025, while taxes for 2023 apply to the tax returns you file in 2024 (current year).

Per-Barrel Oil Tax

The Inflation Reduction Act reinstated the Hazardous Substance Superfund, which adds yet another tax to each barrel of oil. This tax affects anyone who itemizes and claims fuel for their businesses, as the oil companies are going to pass that tax onto businesses and individuals. While the tax is new in 2023, it is retroactive to Dec. 31, 2016.

Standard Deduction

The standard deduction is changing for 2024. In 2023, it is $27,700 for a couple married filing jointly. For 2024 (taxes filed in 2025), you will have an increase of $1,500 for a standard deduction of $29,200. Rates for other filing statuses are:

• Single People and Those Married Filing Separately: $13,850 for 2023 and $14,600 for 2024
• Heads of Households: $20,800 for 2023 and $21,900 for 2024

Marginal Rates

The tax brackets are remaining the same as the 2023 tax brackets. For 2023 and 2024, the top rate is 37 percent for individuals making over $609,350 and for married couples filing jointly making over $731,200. The additional brackets are as follows:

• 35 percent for individuals making over $243,725 and married couples filing jointly making $487,450
• 32 percent for individuals making over $191,950 and married couples filing jointly making over 383,900
• 24 percent for individuals making over $100,525 and married couples filing jointly making over $201,050
• 22 percent for individuals making over $47,150 and married couples filing jointly making over 94,300
• 12 percent for individuals making over $11,600 and married couples filing joint making over $23,200
• 10 percent for individuals making $11,600 or less or married couples filing jointly making $23,200 or less

Alternative Minimum Tax

The Alternative Minimum Tax (AMT) limits deductions. If an individual or married couple itemizing has too many deductions, the AMT kicks in, so you can’t lower your tax responsibility too much. In 2023, the AMT exemption is $81,300 and starts to phase out at $578,150 for individuals and 126,500, phasing out at $1,156,300 for couples filing jointly.

For 2024, the AMT kicks in at $85,700 for individuals and starts to phase out at $1,156,300.

Earned Income Tax Credit

Qualifying taxpayers who have at least three qualifying children can receive an Earned Income Tax Credit (EITC) of $7,830 in 2024 and $7,430 in 2023.

Estate and Gift Taxes

The basic exclusion for estate taxes (commonly known as the Federal Death Tax) for those who died in 2023 is $12,920,00, and in 2024, $13,610,000.

The annual gift tax exclusion is $17,000 for 2023 and $18,000 for 2024.

Contact France Law Firm

These are just a few of the taxes that will affect the average person or couple filing jointly. Several other changes include the limitation for the qualified transportation fringe benefit, employee salary deductions for contributions to health flexible spending accounts, self-only coverage in Medicare Savings Accounts, foreign earned income, and the maximum credit allowed for adoptions.

When it’s time to start your taxes for 2023 and if you need to make changes to your estate plan based on tax changes for this year and next year, contact a tax attorney and estate planning attorney at France Law Firm for a consultation.

The post Understanding the New Tax Laws: What You Need to Know for the Upcoming Year appeared first on France Law Firm.

5 Tips to Help Navigate Tax Season This Year

Stay Organized

While this may seem like a simple and insignificant step, keeping your records organized throughout the year is one of the easiest ways to help avoid chaos when it is time to file your taxes. Whether you choose to use a filing cabinet, an electronic scanner to digitize your important papers or a computer program that will automatically keep track of your transactions, make sure you stay consistently organized throughout the year. If you have access to all of your receipts, invoice and tax forms, filling out your taxes will be much easier.

Understand Which Forms You Need

If you are planning to do your taxes on your own, you need to know which IRS forms you are required to use. For example, if you are the sole proprietor or sole owner of an LLC, you may use a Schedule C attachment on your personal income tax return to recording your business income and expenses. However, corporations must file a separate corporate tax return with Form 1120. Additionally, if your business hired independent contractors or if you have employees, you must take care of the appropriate 1099 forms and W-2’s.

Avoid Procrastination

Waiting to file your taxes can leave you vulnerable to steep penalties, so be sure that you know your tax filing deadline date. If you use a Schedule C, it will need to be filed along with your Federal 1040 form by the typical April 17 deadline. But for small businesses that must file a Form 1120, your taxes typically need to be completed by March 15. If you’ve fallen behind, you may be eligible for a tax extension but keep in mind that you may be subject to penalties and interest charges even if you are granted an extension.

Remember Your Deductions

One of the greatest incentives for starting up your small business is the sheer number of business deductions that are available to help offset your business income. But before you can take advantage of this awesome incentive, you need to know which deductions are available to you and which ones you may qualify for. Most business deductions have a few different requirements that you must meet before you can claim them on your taxes. If you are unsure where to start, consult with a tax attorney to help optimize the deductions you are entitled to.

Hire a Tax Attorney

If you are having difficulty juggling your business operations and tax preparation steps, it may be time to enlist help from a trusted professional. By working with an attorney that specializes in tax law, you don’t have to worry about which forms you need to file, what your deadline is and whether or not you are taking advantage of the right deductions. A knowledgeable tax attorney will be up-to-date with the current requirements you must meet and make sure that you never overpay in taxes. Additionally, they will be able to keep track of which credits and deductions you may benefit from, saving you lots of money in the long run.

Contact France Law Firm Today

The tax filing process is something that can be daunting for even the most experienced small business owners. But with the help of a few smart preparation tips, you don’t have to suffer through the tax season this year. Want to learn more about the benefits of working with our experienced tax attorneys as you navigate the upcoming tax season? Contact us online for more information and be sure to schedule a consultation today.

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Prepare for Tax Season with Our Last Minute Checklist

Whether you’re sitting down to fine-tune your tax documents or you’ve just now found the time to begin the tax preparation process, there are always last-minute items to consider. By creating a clear and concise prep checklist, you can help to keep the process organized and flowing nicely. With our helpful list of necessary tax items, we make it easy to avoid filing your taxes with forgotten or mismanaged information.

1. Collect Your Business Records

Before you can begin crunching numbers, you’ll need to have all of the proper paperwork ready. Take the time to go through and gather all of your important business records include anything that affects your business expenses and earnings. If you use software or a spreadsheet to stay organized, you should be able to input the information directly into your tax return.

2. Meet with Your Bookkeeper

While most bookkeepers do not prepare tax forms, they already have much of the information you’ll need when filing your federal income taxes this year. If possible, schedule a meeting with your bookkeeper to go over your books and ensure that all of your accounts are fully reconciled. Knowing what your books look like will only help to make the tax process go more smoothly.

3. Update Your Mileage Log

Do you use your personal vehicle for business? If so, deducting the standard mileage rate may actually help you save more than if you choose to pay for vehicle expenses over the course of the year. But to do so you’ll need to accurately track your mileage. Skip the pen and paper in favor of a handy smartphone app for easy access and bring in a copy of your mileage report when meeting with your tax preparer.

4. Which Form Should You Use?

Which tax forms you use will depend on how you use your business. For example, if you are a sole proprietorship, an LLC or you are the sole owner of your business, you can actually report all of your business income to the IRS by using a Schedule C attachment on your personal income tax forms. However, if you are a corporation or you operate your LLC as one, you will need to file a separate corporate tax return using Form 1120.

5. Don’t Forget Out of Pocket Expenses

If you purchased anything for your business using a personal credit card or account, with your personal PayPal account or with personal cash funds, each transaction is likely to count as a legitimate tax deduction. Scanning your personal expenses for any business-related purchases is an important part of preparing to file your taxes, so don’t leave it off of your list!

6. Issue 1099s

Did you make any payments in 2017 that would require your business to file Form(s) 1099? Don’t forget that the IRS requires businesses to issue a Form 1099 to any non-corporate service providers who were paid more than $600 in the given tax year. While there are certain exceptions to this rule –like paying for services with a credit or debit card– you should double check that you have issued all 1099s with your bookkeeper.

File Your Federal Income Taxes with Help from France Law Firm

Want to make sure you haven’t left anything off of the list as you prepare to file your taxes this year? Put your trust in our knowledgeable and experienced tax preparation team in 2018. Call (850) 224-1040 for more information or to schedule an initial consultation.

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Start Using Accounting Software

The accounting software doesn’t have to be something that is complicated. It needs to track sales and expenses. Some software integrates with your bank account to keep track of everything you deposit and all expenditures. At the end of the season, you’ll be able to print out reports for your accountant. Accounting software also helps to minimize mistakes on your part and the on the part of your accountant.

Create a Filing System for Receipts

Have a file folder for each month. Keep all of the months of one year in a Redwell so that everything is all together. If you keep the current and previous months’ folders on your desk, you simply place the receipts in the appropriate folder. As you move into the new month, put the previous month’s file folder in the Redwell and create a new folder for the new current month. At the end of the month, scan the receipts into a monthly file on your computer. Additionally, before you put that receipt away, make a note on it. If you took a client to dinner, you might write the client’s name and the reason for the dinner meeting.

Furthermore, at the end of the month, clip all like receipts together. If you have several receipts for office expenses, clip them together. Keep software receipts in another clip. Entertainment expenses should be clipped together. Add a sticky on top of each clipped pile with the total of all receipts for the month. Each clipped pile should have its own total. At the end of the year, when you have to itemize your expenses, you simply need to add up each monthly amount, which is written on a sticky, instead of adding up every single receipt for the entire year.

Keep a Business Journal

Enter your day’s events into a journal every day. You could hand-write it, or better yet, enter the notes on your Google or Outlook calendar. If you are audited, you will have information to substantiate your receipts. Adding information about meetings and who you met with should match the receipt notations. For example, if you took a prospective client to Red Lobster, you would write in the client name, the place you ate and the gist of the meeting. On the Red Lobster receipt, you would add the client name and the gist of the meeting to match what is in your daily planner.

Set Aside Money for Taxes

This is something not many people think of. Open a separate account just for business taxes. You could automatically transfer a set amount each week into the account or you could transfer the exact tax for each sale as the sale comes in. For those who don’t have the time for the extra step of making a transfer for each sale, check to see what your tax obligation was for the previous three years. Add them together and divide by three. This is your average taxes for the past three years. Now, divide that number by 52 to get the amount you should transfer on a weekly basis.

If you believe your business is going to do better than it has in the last year, pad the weekly amount a bit. When it comes time for taxes, you’ll have the amount in the extra account and won’t have to panic when your tax obligation is higher than you expected.

Additionally, if your tax obligation is lower than expected, you could leave the money in the account to get a head start on the next year, or you could move it to a business savings account as extra capital.

Do Not Co-Mingle Business and Personal Finances

Make sure you keep business and personal finances separate. When it comes to tax time, it’s much easier to do your taxes if you don’t have to sort through every transaction. Keep a separate bank account for business and personal; and take a paycheck every week, every two weeks or every month. You’ll also be less tempted to use business funds for personal use or vice versa. By keeping business and personal finances separate, you’ll make tax time much less stressful and easier on you and your accountant.

Contact France Law Firm

If you have tax questions or find yourself or your business being audited by the IRS, contact France Law Firm to set up a consultation to discuss your tax issues.

The post Tips on Organizing Taxes for Your Business appeared first on France Law Firm.

Taxable Income Reductions

Financial advisors and tax attorneys almost always push clients to create and contribute to retirement funds. That’s because this can be one of the gems to reducing your taxable income. IRA payments are considered a “pre-tax” contribution. That means that for every dollar you put into these retirement accounts, that’s a dollar you are not required to pay taxes on this year. Keep in mind, IRAs are really a tax-deferment plan and the government will be looking for that money in your twilight years. Like Ben Franklin said, taxes are certain. At least you’re softening the blow now and building financial security for the future.

The Sustainability of Spending Money

The green energy movement has opened up numerous doors for people to save money on taxes. Replacing antiquated heating systems, drafty windows and installing solar energy panels leads to significant tax rebates. These upgrades also improve your quality of life and increase property values. Taking these positive steps also gives you a wonderful feeling about doing your part for the environment. By spending money on energy efficiency, you’ll enjoy a better tax situation.

Plan Ahead

The thought of making charitable donations often hits you right in the middle of the gift-giving holidays. In many cases, that means having to stretch budgets and resources to effectively do both. After the season passes, many people look back wishing they could have given more. By practicing monthly or quarterly financial planning, you can allot resources in advance and feel good about the happiness spread through gifts and donations. Many of those charitable contributions are also excellent tax deductions. They’re the gift that keeps on giving.

It’s important to treat your personal finances like a business. And like any company, there are strategic investments to consider. You can diversify your portfolio by putting money into things like municipal bonds that are issued to fund projects such as airports and schools. These investments are considered tax exempt from federal and, usually, state taxes. Tax planning means making key decisions about your financial health in a timely fashion, not after the fact.

Brush up on previous years’ tax filings and use those records as an indicator for future decisions. Don’t hesitate to meet with your financial advisor or tax attorney. Get a clear understanding of the deductions you are taking full advantage of and those that could see improvement. Discuss potential tax credits and changes to the tax code. Long-term planning will undoubtedly make the process much easier from year to year.

Check the Box for Stress Deductions

One of the worst and most common things people do in terms of tax preparation is procrastinate. That personal policy actually doubles your stress. Not dealing with tax information leaves that little voice in the back of your mind that something remains unfinished. When crunch time arrives, you’re faced with a Herculean organizational task. Investing small amounts of time year-round will make things run much more smoothly and quiet that inner voice.

• Have A System: Create a system that works for you and streamline it from year to year. After all, taxes are forever. This doesn’t mean using and old shoe box full of crumpled receipts. There are plenty of inexpensive tax software products on the market. Even an Excel spreadsheet can provide basic expense tracking. Being organized is half the battle.
• Keep Receipts: You won’t save any extra money by having all of your receipts. On the other hand, if you get randomly audited, the IRS may reject certain expenditures and deductions without them. The IRS could also start a costly tax audit as well. A notebook and glue stick are sufficient to keep proof of payments organized. Many small business owners glue them to a page and make an entry about what that money went toward. In the event of a computer crash, this gives you a hard copy backup.

Benjamin Franklin and Founding Fathers fought the American Revolution to ensure fair and equitable taxation. You are assured a voice in how the government taxes your income and assets. Utilizing good organizational practices and financial planning can make your ledger sheet a little more equitable and easier to manage.

It’s important to work with an experienced attorney on tax-related matters. At the France Law Firm, we are here to help.

The post Taxes: How To Make Next Year’s Easier appeared first on France Law Firm.

When entrepreneurs make the decision to open a business, likely taxes are the last things on their mind. However, understanding how your business will be taxed and how you need to file taxes will make or break your endeavor. Learning from a tax attorney, such as Belinda France, will make sure that you’re providing the correct information and correctly filing those important documents.

If you’re thinking about starting a business, don’t leave taxes as an after-thought. Bring us your plans and goals so we can build you a legal structure that will protect your business legally from tax problems. No matter if you’re a small or big business, taxes are important. And having an experienced attorney assisting you in filing them can help you ensure your business will be sound for years to come.

If you have questions about filing your business taxes, give us a call at France Law Firm. We will be happy to help you sort out any business tax woes.

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