What Questions Should Entrepreneurs Ask a Tax Expert?
When consulting with a tax expert, entrepreneurs should consider asking the following questions:
1. What are the Tax Implications of My Business Structure? Your business structure (e.g., sole proprietorship, partnership, LLC, corporation) affects your tax obligations. A tax expert can help determine the most tax-efficient structure for your business.
2. How Can I Maximize My Deductions? Understanding which expenses are deductible can significantly reduce your tax bill. A tax expert can provide a comprehensive list of potential deductions applicable to your business.
3. What Records Should I Keep? Proper record-keeping is essential for tax compliance and to substantiate deductions. Ask your tax expert which records are necessary and how long you should keep them.
4. Are There Any Tax Credits I Can Claim? Tax credits can directly reduce your tax liability. A tax expert can help identify available credits, such as those for research and development, and guide you through the application process.
5. What Changes in Tax Law Should I Be Aware Of? Tax laws frequently change. A tax expert can inform you about recent legislation that may impact your business and suggest appropriate adjustments.