• Home
  • Credentials Matter
  • Practice Areas
    • Personal Injury
    • Truck Accidents
    • Uber Accidents
    • Motorcycle Accidents
    • Car Accidents
    • Slip and Falls
    • Medical Malpractice
    • Wrongful Death
    • Workers Compensation
  • Blog
  • Free Case Evaluation

August 3, 2019 by Brooklyn Injury Lawyer

What Is Tax Liability Minimization?

One of the more important strategies for a business to employ is called tax liability minimization. However, it is essential that you know what you are doing when undertaking this task. The federal government has very strict requirements for businesses paying taxes. You need to follow these rules carefully or you may face legal trouble. There are things you can do to minimize how many taxes your business owes, but some strategies are legal and some are not.

Tax Liability Minimization Vs. Avoidance

The difference between tax liability minimization and tax liability avoidance is that the latter is illegal. The most common method of tax avoidance is to not report all your income. If it appears that your business made less than it did, you do not need to pay as much in taxes. Instead, you will only pay taxes on the amount your business did earn, and you can pocket the rest. To be perfectly clear, this is tax fraud and many people go to prison every year for doing exactly this. Another form of illegal tax liability avoidance comes in the form of claiming deductions that you are not eligible for.

Tax liability minimization, on the other hand, is perfectly legal. There are some strategies you can employ that reduce how much you owe without being dishonest or breaking any laws.

Methods of Tax Liability Minimization

Here are the most common forms of legal tax liability minimization:

  • Increase Employee Benefits – Paying into employee benefits, such as retirement plans or healthcare, reduces your total gross income. This means the amount you are taxed on is reduced. Make sure you keep careful records of where every dollar goes and report it to the IRS accurately.
  • Charity Donations – If you contribute a large amount to the right charities, you can receive sizable tax deductions. As added bonuses, you can do a lot of real good in the world and improve the reputation your business has at the same time.
  • Transition Non-Qualified Investments – This one is a little hard to understand unless you already know how it works. Essentially, dividends and interest are not taxed by the federal government and sometimes state government. This means you can carefully transition your investments to reduce your tax liability as much as possible.

Because this is such an important matter, it is a very good idea to hire a business tax accountant or attorney, like a business lawyer in Charlottesville, VA, to handle this. You can still get in serious trouble even if you break a tax law accidentally.

 

Thanks to Dale Jensen, PLC for their insight into business law.

 

Filed Under: Uncategorized

  • Home
  • Credentials Matter
  • Practice Areas
    • Personal Injury
    • Truck Accidents
    • Uber Accidents
    • Motorcycle Accidents
    • Car Accidents
    • Slip and Falls
    • Medical Malpractice
    • Wrongful Death
    • Workers Compensation
  • Blog
  • Free Case Evaluation

BROOKLYN, NY PERSONAL INJURY RESOURCES

Slip and Fall Attorney Brooklyn
Truck Accident Lawyer Brooklyn NY
Slip and Fall Attorneys Brooklyn NY
Car Accident Attorney Brooklyn NY
Medical Malpractice Attorney Brooklyn
Automobile Accident Attorney Brooklyn NY
Personal Injury Lawyer Brooklyn
Personal Injury Lawyers Brooklyn
Car Accident Lawyer Brooklyn
Truck Accident Lawyer Brooklyn
Motorcycle Accident Lawyer Brooklyn
Brooklyn Medical Malpractice Attorneys
Uber Accident Lawyer Brooklyn
Wrongful Death Lawyer Brooklyn
Workers Compensation Lawyer Brooklyn

Other Resources:

Free Legal Advice
Automobile Accident Lawyer Brooklyn
Uber Accident Attorney Brooklyn
Wrongful Death Attorney Brooklyn
Slip and Fall Lawyers Brooklyn
Workers Compensation Lawyers Brooklyn
Medical Mistake Lawyer Brooklyn
Auto Accident Lawyer Indianapolis, IN
Drug Possession Lawyer Llano, TX
Disability Discrimination Lawyer Washington, D.C.
Denver Work Injury Lawyer

Free Consultation

Request a free consultation with one of Brooklyn NY's premier personal injury law firms.

Request Free Consultation

Location

142 JORALEMON STREET
5th Floor
BROOKLYN, NY 11201

No Legal Advice Intended. This website includes general information about legal issues and law practices. Such materials are for informational purposes only and should not be considered legal advice or counsel. Information may not reflect current legal standards. For legal advice specific to your needs, contact an attorney licensed in your jurisdiction. Do not rely on any statement on this website for any reason whatsoever. Furthermore, the information contained in this website is for informational purposes only. It is not, nor is it intended to be, legal advice or representation. Your review or use of this web site, its information and links does not create an attorney-client relationship or an attorney-client privilege between this law firm and you. Statements made to this firm before the formation of an attorney-client relationship may not be privileged and confidential.



© COPYRIGHT 2022 BROOKLYN PERSONAL INJURY LAWYERS | POWERED BY SEO For Attorneys

Other Resources
American Bar Association | The American Lawyer | National Lawyers Association | Lawyers Without Borders | American College of Trial Lawyers | American Bar Association | National Association of Women Lawyers | Lawyers Associated Worldwide | Cohen & Cohen P.C. | Auto Accident Lawyer DC | Washington DC Medical Injury Lawyer | Service Truck Accident Lawyer, DC | Auto Accident Lawyers Washington DC | Elizabeth, NJ Workers Comp Attorney