Improper filing of taxes can cause a significant financial loss, especially for first-timers. This is because they have had high tendencies in committing mistakes since they are unfamiliar with the process, and in return, become a waste of time. However, the filing of taxes and tax returns happens every year at one particular period and there are different laws to follow depending on the state where your business is located. Wasting time and making mistakes will only cause financial losses or worst having your business shut down due to penalties for late filing.
First timers and new business owners are prone to making mistakes, and this is the very reason why one should hire a business attorney from Monahan Legal Firm, they are experts in the field to help you out. Laws and taxes are often confusing, not to mention that there are usually tons of paperworks or requirements needed for your business to legally operate. For example, if you are doing a business in Phoenix, Arizona, you must file the Form 165 to determine your business type. The form 165 will help identify if your business is under a partnership, LLC or corporation and if it’s subject to an Arizona income tax. Attorney’s from Monahan Legal Firm can fully explain this to you and make sure the process will be smooth sailing for you and your company.
In addition, most of the time, first timers overpay or sometimes underpay and which either way causes penalty and financial loss. Also, they miss out a couple of requirements many times. Moreover, they tend to put the wrong information in the wrong space provided.
To help you further understand the practicality of a business lawyer for your tax preparation, let us present some explanations to why and how it helps you financially and in conserving your time.
Stop Wasting Time
Doing something for the first time without prior knowledge or deep understanding of it is a total waste of time. You need a business lawyer to guide you through the process and help you understand the things that’s essential for your company to be law-abiding. For first-timers who have a high tendency of committing mistakes,wasting time is usually one of the cases. Hiring an expert will save you from the trouble of searching for how many hours on how to do it. Also as a busy person, you can use this freed time to improve your skills or your business.
Prevent Late Payments
Making sure you pass the documents on time is one way to do it cheaply and save on some money. You might think that hiring a business lawyer will just be an added expense to your company but in reality they can help you preserve your finances. Other than helping you settle your government obligations smoothly, they can easily spot some fraudulent transactions happening inside your business. Most importantly, they can prevent you entering an engagement or contract that’s not favorable to your business. If you already did and make the mistake, they have the skills to spot potential faults on the contract.
Remember, business taxes are not cheap at all and the late filing will cause one to receive a penalty. As said above, you can spend hours trying to find out how to do things properly only to come out in the end as a fruitless effort. The expert you hire will help to ensure that you don’t miss the deadline.
Additional Read: Here’s what happens if you don’t pay your taxes
Avoid Getting Sent Back Many Times
Common Mistakes that a first timer does are usually on the part that you need to put the proper information on the space provided. Lacking requirements and paperworks is also a common scenario. If you are a business owner concentrating on how to grow your business, remembering all of these things can be difficult, so you would definitely need someone who is on top of the process and requirements.
Another common mistake is when you miss out a couple of things thus making the document less convincing to be accepted. This results from getting sent back many times.
Ensure the Right Amount of Tax is Paid
Many people might even argue that underpaying is advantageous to us since we are paying less. This is entirely not true because whether it is overpaying or underpaying, both have harmful effects on us financially. Moreover, when someone is caught underpaying their tax, they will have to face the legal consequences.
Many might say that hiring a business lawyer is just an added expense. But if you think about the many benefits it can offer, you might be saving more money than not hiring one. Always remember those reasons mentioned above if you want to have a worry-free tax preparation and filing.
Author Credits for Patrick Monahan
Patrick Monahan is the managing partner of Monahan Law Firm, PLC. Patrick began his legal career practicing real estate, construction, and general business litigation. Over the years, Monahan Law Firm, PLC has expanded to serve clients in domestic relations, personal injury, and estate planning.