It is natural to put the prospect of tax liability out of mind once tax season ends. However, every transaction and investment will have tax implications no matter what time of year it is made. That is why tax planning is such an essential task for businesses and investors.
With the possibility of a global minimum corporate tax rate on the horizon, forming a relationship with a firm to assist you in tax planning is more critical now than ever.
How to plan for taxes
What is and is not taxable and the general percentages are by no means a secret. Depending on the type of transaction, the size of the transaction and the locations involved, you might find a simple figure with a Google search. Then, all that is left is to work that taxable amount into your calculations.
However, when businesses and investors choose a “do-it-yourself” approach to tax planning, they typically find themselves losing out on a lot of money. Tax planning, properly done, demands a comprehensive understanding of federal and local tax requirements and deductions. The process is far more complicated than Google-and-guessing.
How a law firm can help save you at tax time
When you engage a law firm for tax planning, they will support you in every transaction from business formation to financing to succession planning. You want to rely on a firm known for:
- Extensive attention to detail
- Diverse experience in business matters of every type
- Personal accountability
- A respected international reputation
Combining these factors allows an attorney or legal team to take every possible chance to minimize your tax liability. It will enable a sensible, comprehensive plan of action to mitigate your tax risks when the time comes next year.