Tax issues can be complex when structuring commercial, strategic, and financial transactions as well as investment products. For practical solutions to these complex questions, clients turn to Bold Tax Law’s expert C Corporation Tax Attorneyfor advice on the entire spectrum of federal, international, and state tax concerns. We are sought-after by clients not only to solve their tax concerns arising from the transaction, however, but they also seek to give them competitive advantages by establishing strategies to address the tax problems that the counterparties face.

C Corporation Tax Attorney Considerations When Selling Your Business

If the owner of the business is considering selling their business, they have to determine whether they would like to sell the company’s stock or assets of the company. A seller or shareholder will typically opt for an asset sale, while buyers would typically prefer the option of an assets sale. If the shares of a C company are sold, a sale or exchange treaty is granted to the transaction, which means that the shareholder is entitled to capital gain tax treatment for the amount over the basis of their stock. The buyer will prefer an asset sale since the purchase permits a rise in basis. Also, the buyer doesn’t carry over the depreciation schedule of the seller. This typically gives buyers more deductions as well as lower tax.

Additionally, if the corporation’s stock is bought and sold, the seller is relieved of any liabilities or liabilities relating to these will be transferred on to the buyers.

These issues illustrate that selling C corp assets is not beneficial due to the fact there are no capital gains tax rates for corporations. A C-corporation that sells appreciated assets is required to pay corporate tax, even if the company earns a capital gain. If cash distributions are made to shareholders following the sale of corporate assets, it is also a tax-deductible event that is likely to be considered an income dividend or to receive capital gains tax treatment. In any case, double taxation has been averted.

A C-corporation may be able to reduce any or all double taxation by utilizing the current tax characteristics of the company. For instance, the business could be operating at net losses or specific credits that are carried forward.

Any company considering liquidation or selling its assets or stock should speak with their attorney for business and/or tax lawyer to discuss the complete implications of the transaction. A C Corporation Tax Attorneyand a USA business attorney from the Bold Tax Law Firm can assist you with a tax or business-related questions or concerns.

What a Bold Tax Law Corporate Tax Lawyer Could Do For You

Our firm is prepared and ready to address all tax-related questions for corporate entities. When you’re considering acquiring an affiliate or taking action to address the IRS or determine the next stage of your company and require assistance, the help of a Minnesota corporate tax lawyer can assist you throughout the procedure. Schedule an appointment to find out how we can assist you in completing the tax burden of your company.

Why Would You Choose a C Corporation Tax Attorney?

Many business owners choose to use corporations for their business entities. Although corporations might have more stringent reporting requirements and will require more documents, they provide the most protection for the protection of personal assets free of personal liability.

A few of the benefits of using an organization as the company structure are:

  • Legal protection from liability for personal actions as the business is an independent entity
  • The capability to issue stock certificates makes it easier for investors to find
  • Well-defined management and operational structure
  • The process of incorporation may be longer and expensive compared to the process of creating other entities.
  • The company must adhere to formal corporate procedures to preserve the distinction between the shareholders, investors officers, and managers
  • The earnings of a company could be taxed twice of earnings
  • The company may provide stock options and other benefits to draw employees
  • The company can continue to exist for a long time even though the founders of the founders depart or die.
  • Flexibility can be restricted following government regulations based on the kind of business conducted

FAQ on C Corporation Tax

What exactly do corporate attorneys do?

Corporate lawyers ensure all commercial agreements are legally legal. They advise corporations on their legal rights as well as obligations. This includes providing advice to corporate executives. The corporate tax attorney can deal mostly with the tax implications of every commercial transaction.

Do I require a CPA or tax lawyer?

The decision to employ a CPA or tax attorney will depend on your specific tax needs. It is recommended to employ a CPA for assistance in the accounting and business tax aspects like filing taxes. Find all tax deductions and credits that you can qualify for.

What should I look for in the right tax attorney?

Where to start looking. Start searching for a tax lawyer by asking trusted professionals. Talk to your accountant, banker, or someone you’ve dealt with in the past on a different matter. If you’re unable to obtain the recommendation you need, make contact with your local association to find specialists in your area.

What’s the distinction between a C-Corp as well as an S-Corp?

Technically speaking, S-Corps are technically classified as S-Corp is a kind of C-Corp that is subject to tax exemptions that are granted in exchange for certain restrictions. The two S-Corps and C-Corps have similar operations and have the same corporate structures, however, they are taxed differently. S-Corps do not pay taxes directly, they are pass-through entities. C-Corps are tax-exempt entities that pay corporate taxes. Furthermore, S-corps may only have a small number of shareholders and kinds of shareholders, and issue only one type of stock, whereas C-Corps have no such restrictions.

What do I need to pay taxes on the C-corporation I own?

Employ an accountant. It is possible to determine the tax forms on your own if you run an extremely simple firm, but if your business has any kind of complexity you should seek out a CPA. Hire one of them on your team, or bring it to a CPA for your tax returns to be completed.