You can never underestimate the importance of proper tax planning. With proper tax guidance, you can save your business (and yourself) a tremendous amount of money, and potentially, some serious legal trouble.
Federal and state tax laws are notoriously complex. To make matters even more confusing, our tax laws are constantly in flux, with new guidance being issued by the Internal Revenue Service (IRS), decisions coming from tax courts, and the possibility of major tax reform on the horizon. More than ever, you need an experienced tax attorney by your side.
At Whitcomb, Selinsky, PC, our tax law attorneys have helped to protect the legal rights of many businesses and individuals in Denver, Colorado and throughout the surrounding communities. If you need tax law advice, please contact our law firm today for immediate legal assistance.
Business Formation and Tax Planning
When forming a new business, the issue of long term tax planning should always be in the forefront of your mind. It is strongly recommended that entrepreneurs seek assistance from a business lawyer who has tax planning experience.
Mergers and Acquisitions
One of the keys to a successful merger or acquisition is limiting the tax consequences of the transaction. Not only will proper tax guidance allow your company to get through the M&A process without being hit with avoidable penalties, but your tax attorney can also help you identify tax avoidance opportunities wherever they are present.
Tax Litigation and Controversies
Unfortunately, businesses sometimes run into situations in which they are facing serious tax controversies and potential tax litigation. Our law firm works to help our clients solve their complex tax issues as early in the process as possible. We want to focus on helping businesses save money. Usually, this means avoiding tax litigation whenever it is possible to do so. There are some exceptions, however. Ultimately, when we take on your case, our legal team will conduct a comprehensive review of your individual situation in order to determine exactly what needs to be done to best protect your legal rights and financial interests.
IRS collection actions
If you feel overwhelmed by your tax issues, you are certainly not alone. Our Colorado tax lawyers also provide tax guidance for individuals who are facing complex tax situations of their own. You may need to consult with a tax attorney if you are dealing with any of the following issues:
At Whitcomb, Selinsky, PC, our dedicated tax law attorneys have extensive experience representing clients in a wide array of tax law matters. To learn more about what our legal team can do for you, please contact us today at 866-476-4558. Our primary office is located in Denver, Colorado and we have a secondary office in Herndon, Virginia.
Selling a small business can be complicated. There are many things you need to consider in order to ensure that your legal rights and financial interests are adequately protected. Depending on the circumstances surrounding your specific small business, there is a chance that you could face a large tax bill as a result of the sale.
The good news is that with proper planning and skillful guidance from an experienced Colorado tax attorney, it is possible to minimize your total tax exposure.
If you sell your business interests, your transaction will be taxed as a capital gain. Simply put, this means that you will be taxed on the difference between the value of your shares when they were obtained (your tax basis) and the the value of your shares at the date that they were sold.
To know exactly how much you will be required to pay in capital gains taxes, you need to know the tax basis of your assets. With this information, you can best decide how to structure the small business sale.
There are several different ways to sell your business. Each one has different tax implications. For example, you may decide to go with an asset purchase or a stock purchase. As a general rule, a stock purchase creates tax benefits for the seller of the business, whereas an asset purchase creates tax benefits for the buyer of the business. Though, the extent of these potential benefits will always vary based on the specific business in question.
In some cases, business owners may be able to pull off a tax-free deal. While most small business sales are completed as taxable transactions, in certain cases, stock exchanges and other M&A type deal structures can be used to allow for tax-free treatment under the United States federal tax code. If you are selling your small business to another corporation, this is something worth reviewing and considering.
Finally, another good way for small business owners to minimize their tax consequences is to defer taxation for as long as possible. Ultimately, time is money, and you may be able to put that deferred tax money to good use right now. By selling a business in installments, taxes can potentially be deferred.
Of course, this option is not always advisable, but in certain situations, especially when capital gain tax rates might change in the future, tax deferred sales could be the best available option.
At Whitcomb, Selinsky, PC, our Denver small business lawyers have extensive experience representing companies in Colorado. If you are selling your small business and you need tax law advice, please call us today at (866) 476-4558. Our team is standing by, ready to protect your legal rights and financial interests.