Starting a small business is an incredibly exciting endeavor, but it can also be stressful. There are a lot of things that new business owners must consider, including tax obligations. It’s important to understand why every small business needs a state tax attorney.
Businesses must comply with their tax responsibilities, both state and federal, or they can face serious fines, other penalties, or even criminal charges. A state tax attorney can help avoid these issues or help you navigate them when they occur. By working with an attorney, you protect your business and your financial future. There are many ways that your small business can benefit from a state tax attorney, including:
Starting a Business
Between 2023 and 2024, nearly 1.3 million new business establishments opened nationwide, according to the U.S. Small Business Administration Office of Advocacy. From 2021 to 2022, more than 118,000 new business establishments opened in Florida. When you start a new business, there are a lot of things you must do, including choosing a business structure.
The business structure you pick can have a significant effect on your taxes, as certain structures provide tax benefits. When you hire a state tax attorney, they can help you understand these benefits and assess what business structure fits your business goals while also providing potential tax benefits, such as tax deductions or credits.
Effective Tax Planning
By working with an attorney from the beginning of your business, you can also put the right plans in place to ensure tax compliance and proper documentation. A tax attorney can give you advice on your options. It is much less hassle to have a plan for straightforward tax filing, rather than trying to fix mistakes or find documentation without this infrastructure in place. It also limits your business’s risk of penalties or other consequences.
Your tax attorney can also help throughout the operation of your business. They can help you:
- Minimize the tax liability you owe through legal tax avoidance strategies.
- Meet your frequent deadlines for estimated taxes, property and real estate taxes, payroll tax deposits, corporate income taxes, self-employment taxes, and much more.
- Collect proper documentation for your finances, expenses, income, and deductions.
Having an attorney helps you save time on your taxes so that you can focus on other aspects of your business.
Tax Advice Specific to Your Business
An attorney helps you understand how tax laws affect your unique type of business. Different industries, business structures, employee numbers, locations, and many other factors can affect your small business, and the tax laws it must comply with. Your tax attorney also helps you remain aware of changes to tax codes that might affect you. You may be able to secure more deductions, or there may be new restrictions that you must comply with.
State Tax Audits
Your small business can face both state and federal tax audits. Even if you believe you have done nothing wrong, it is crucial to prepare. The state agency may be conducting the audit at random or has found a discrepancy in your information that it wants to review.
An attorney can look through your tax information to determine if there are any issues. If there are, they can help you address them prior to the audit and report them appropriately. Your attorney can also represent your interests during the audit and protect your rights.
Disputes With Tax Agencies
If you have a disagreement with a decision made by a state tax agency or are facing collection actions for tax debt, your tax attorney can help you navigate this situation. Many attorneys can also represent your interests to the agency, protecting your rights throughout the process.
FAQs About State Tax Laws for Small Business
Should Everyone Have a State Tax Attorney?
It can be incredibly helpful to have the guidance of a state tax attorney, but not everyone needs one. You can get more benefits from working with a state tax attorney if you have a unique financial or personal situation that makes your state taxes more complicated. Business owners and employers should work with a tax attorney who understands state and federal tax codes. Taxpayers with international assets or who receive governmental benefits can benefit from a state tax attorney.
Is Hiring a State Tax Attorney Worth the Cost?
It can be worth the cost to hire a state tax attorney depending on your situation. You can especially benefit from a state tax attorney if you owe the state tax agency back taxes, are facing an audit, or are being investigated. An attorney could end up saving you a lot of money through debt settlement or successfully navigating an audit. Set up an initial consultation with an attorney and ask questions about your case to find out how they can help.
Do I Need a State Tax Attorney for My Small Business?
When you own a small business, it is especially important that you work with a state tax attorney. A tax attorney can help you from the very beginning with tax compliance and finding a tax-advantaged business structure. Ensuring compliance can help you avoid issues with the state tax agency, such as penalties, audits, or charges. If a dispute does happen, it is much easier with an attorney. Your attorney helps you manage the issues and minimize any negative consequences.
What Is the New Rule for Small Businesses?
Recent legislation changes that affect small businesses include the Corporate Transparency Act (CTA), which went into effect in 2024, and the One Big, Beautiful Bill (OBBB) that went into effect in July 2025. The CTA requires more business owner information for increased transparency. The OBBB provides tax cuts, creates more tariffs, provides more depreciation deductions, and more. It’s important to discuss these and other legislative changes with a tax attorney to understand how they affect your unique business.
Hire a State Tax Attorney in Florida
At TaxSmith, LLC, our experienced state tax attorneys can bring you transparent and comprehensive legal advice to help your small business. Tax issues can be stressful, and you have a lot to manage when you own a small business. We have helped businesses for more than a decade, and we always stay up to date on state and federal tax codes. Reach out to our firm to see how we can help you.
