How Can a Tax Lawyer Help My Small Business?

A tax attorney understands the law. They can help you navigate through IRS issues and even represent you in court where necessary.

As a small business owner, hiring a tax lawyer can also help your business comply with IRS audits and it also ensures that your best interests remain protected.

Tax season can also be stressful and overwhelming for small businesses. However, with a tax lawyer in your corner, you can sort out any tax issues as you file your returns and prevent tax audits.

There are numerous benefits to hiring a tax lawyer for your small business. Read on to find out how you can benefit from their services.

Who Is a Tax Lawyer?

A tax lawyer is a professional who helps you plan and file taxes. As earlier discussed, they can also defend you in court where necessary. It is important to note that a tax attorney is different from an accountant.

For starters, a tax lawyer cannot help you prepare taxes. They stay updated on new IRS regulations and spend a lot of time researching discrete issues relevant to your business. This ensures they can effectively help you navigate through any tax issues well before they arise.

It is also important to note that you can hire a tax lawyer when venturing into a new business startup as they can help you establish your business to avoid issues such as tax fraud and guide you through audits.

Why Should I Hire a Tax Lawyer?

When it comes to taxes, there is no room for error. A small error or omission can result in penalties such as fines, interest, tax audits, and even fraud charges. Here are some ways in which your business can benefit from a tax lawyer.

Saves Time

As a small business owner, learning about bookkeeping and tax obligations can be a full-time job. In addition to learning them properly, you also have to keep up with regular changes and updates to tax law.

However, hiring a tax lawyer ensures that you can focus on your business while a professional takes care of tax issues. A good tax lawyer can also help you stay on track with your business goals and expand or acquire new businesses.

State and Local Taxes

There are state and local taxes as well as federal taxes which can get tricky for an inexperienced business owner. If your business is new, you also have to navigate employee taxes.

Depending on special considerations such as whether you conduct business out of state, you might also have to navigate international taxes. These can be overwhelming even to the most experienced business owners.

Hiring a tax lawyer will help you navigate complex tax issues as they arise.

Take Advantage of Deductibles

Small businesses can take advantage of tax deductibles to keep money in their pocket. An experienced tax lawyer can help you understand which ones apply to your business.

For instance, if you travel for business or buy new equipment, you may be eligible for certain deductibles. Of course, each business expense comes with strict provisions and any rule-bending can result in n serious penalties.

Having a tax lawyer on your side helps you stay afloat while finding ways to offset business expenses.

Report Your Business Income

When the IRS refers to income, it includes property, sales income, bartering, interest, goods, and services among others. You are legally required to report all your income streams and any failure to report can lead to the IRS imposing penalties and interests.

A tax lawyer can help you report your responsibilities and ensure that you report relevant income sources keeping you safe from the IRS.

Sort Disputes With the IRS

If you have a tax dispute, a tax attorney can advocate on your behalf. It is well known that dealing with the IRS can be complex and the bureaucracy can take away hours that you could be spending on your business.

A good tax lawyer who is experienced in your sector can take the fight off your hands allowing you to focus on keeping your business competitive.

Starting a Business

If you are starting a new business or even expanding your current establishment, a tax attorney can help you lay a starting foundation. They can keep you updated on the different business entities and how to classify your new venture.

Whether it is a C-Corp or S-Corp, sole proprietorship, or LLC, your tax attorney can help you understand which tax laws apply to your business.

Reviewing Legal Documents

A tax lawyer can also help you review legal documents and handle any issues that arise. In court, ignorance is not an excuse and even if you do not understand the legal documents, you can still be charged for failing to meet your obligations.

A tax lawyer saves you this trouble by breaking down the documents so you can understand and dispute any issues.

How To Hire a Tax Lawyer

Do not wait until you are in the thick of tax season to look for a tax lawyer. Be proactive and hire one earlier before Tax Day.

It is critical that you do not hire a jack-of-all-trades. Find a tax specialist who has relevant experience in your area of specialization. While an all-purpose lawyer may be cheaper, they simply do not have the depth of knowledge that a tax lawyer specializing in your area of business brings.

Once you have found a lawyer, ask for references from clients they have worked with before. Consider online client reviews as well and find a tax lawyer who is pleasant to engage.

Remember, you might have to spend plenty of time working with them, so a pleasant personality is an added advantage.


Overall, a good tax lawyer will help make tax season a breeze for your small business. Get in touch with an experienced tax lawyer today to find out how your small business can benefit from their services.

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