If you recently opened a small company or store in your community, you may face a number of obstacles during the year, including tax planning. If you don't set aside the right amount of money to cover your tax expenses and other business needs, you could face problems with the Internal Revenue Service (IRS). Learn more about tax planning and how you can do it properly below.

Why Is Tax Planning So Important?

Tax planning is one of the most important things you can do for your business. Tax planning allows you to set aside funds for your company's expenses throughout the year, including the money you must pay to your contractors, employees, investment funds, and vendors. Planning also allows you to cover the costs of operating your business during the year.

You may also use tax planning to estimate your company's tax liability to the Internal Revenue Service. All businesses must pay a specific amount of taxes to the IRS at the end of the taxable year. Depending on your company's business model, you may be able to deduct some of your expenses to offset your tax liability. But if you use the wrong deductions when you file your business taxes, you may end up owing IRS instead.

If you don't establish a plan to cover all of the areas above, you could face liens on your business, profit losses, and many other factors. 

Who Can Help You Plan Your Taxes and Finances Properly?

Even small upstart or new businesses require legal help with their taxes. One of the entities you can turn to for help is a business attorney. A business attorney can look over your company's financial status and help you design a plan that allows you to succeed in your community.

In addition, an attorney can help you:

• find the right retirement plans for you and your employees
• use the right tax deductions for your end-of-the-year tax filings
• establish contracts with your contractors and vendors
• fight unexpected lawsuits from clients, contractors, and customers

Some small companies also need assistance finding or paying business loans. You may need to obtain additional funding from a bank or another entity in the future. An attorney can read over your contracts to ensure that they meet your financial goals before you sign the paperwork. 

If you need assistance planning your taxes and other business needs, consult a business attorney for services today.