What is the difference between sales tax and income tax for businesses?

Sales tax is a consumption tax imposed by state and local governments on selling goods and services. Businesses collect sales tax from customers and remit it to tax authorities. Income tax, on the other hand, is a tax levied on a business's profits by federal and state governments. While sales tax is based on transactions, income tax is calculated on net income after deducting expenses. Both taxes are essential considerations for businesses and may vary based on jurisdiction.

What tax deductions are available for small businesses?

Small businesses have the opportunity to lower their taxable income by deducting various expenses, including operating expenses like rent, utilities, and wages. They can also deduct costs for equipment, supplies, and business-related travel. Moreover, they can take advantage of deductions for health insurance premiums, retirement contributions, and certain startup costs. To ensure eligibility and maximize deductions, it's reassuring to know that keeping detailed records and consulting a tax professional are essential steps.

How does depreciation affect business taxes?

Depreciation, a powerful tool, allows businesses to deduct the cost of tangible assets over their useful life. By spreading out the expense instead of deducting it all at once, it significantly reduces taxable income, thereby lowering the amount of tax owed. Various methods, such as straight-line depreciation or accelerated depreciation, determine the timing and amount of depreciation deductions. This understanding can fuel your optimism about accurate financial reporting and effective tax planning. Remember, consulting with a tax advisor can provide valuable guidance in this area.

How do you help me with tax credits and deductions?

We start by identifying all the tax credits and deductions available to your specific business and industry. From common expenses like supplies and travel to more specific credits for things like hiring certain employees, we make sure no opportunity is missed. Our job is to stay up-to-date on all the latest tax laws so you don't have to, ensuring you take full advantage of every legal benefit.

Can you help me with sales tax and payroll tax compliance?

Yes, we absolutely can. We have a lot of experience helping businesses with both state and federal tax compliance, including sales tax and payroll tax. We can help you navigate the complex regulations, calculate what you owe, and ensure you meet all deadlines. This frees you up to focus on running your business without worrying about falling out of compliance.

What is the primary goal of your Business Tax Planning Services?

Our primary goal is to empower your business to thrive by maximizing your financial success and minimizing your tax liability through strategic planning. We take a proactive, year-round approach to your finances, going far beyond simple tax preparation. We analyze your unique situation to identify every opportunity for tax credits, deductions, and other savings, helping you make smart financial decisions that support your long-term business goals and foster prosperity.

Business Tax Planning Services in Tampa & Oldsmar in Florida

Hire a professional and take the stressout of taxes.

Hire a professional and take the stress out of taxes.

Maximize Your Business Tax Efficiency with Lion Tax

Your Trusted Partner for Comprehensive Tax Services

Welcome to Lion Tax, your trusted partner for all your business tax needs. At Lion Tax, we understand that navigating the complex world of taxation can be daunting for businesses of all sizes. That's why we're dedicated to providing comprehensive and reliable tax services tailored to meet the unique needs of your business. Whether you're a small startup or a large corporation, our team of experienced tax professionals guides you through every step of the tax process, ensuring compliance with current regulations and maximizing tax efficiency.

From tax planning and preparation to IRS representation and audit support, we offer a wide range of services designed to help you minimize your tax liability and optimize your financial performance. With Lion Tax, you can rest assured knowing that your business taxes are in capable hands, allowing you to focus on what you do best – growing your business. Let us be your partner in success.

Business Tax Planning Services

Start Planning Your Financial Future Today

Many people feel their tax bill is too high. Maybe you do, too. The good news is that it doesn’t have to be. When you work with an accounting firm like ours, we make your financial success a priority.

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If Financial Success Is Your Goal, We Are Here to Help!

There is more to preparing your taxes than simply filling out forms at tax time. It's also about understanding our clients’ needs and helping them plan for a secure future.

Here’s how we do it:

Based on careful analysis of your tax situation, we make sure you take any tax credit and deduction you deserve on your tax return.
We help you set up a recordkeeping system that meets IRS requirements.
We work with you all year long--not just at tax time to develop tax planning strategies that lower your tax bill.

We review and adjust your paycheck withholding so that it accurately reflects your tax situation and lets you keep more of your money (why give the IRS a free loan?).
We help you understand how to defer tax liabilities through pension plans, retirement contributions, and similar plans.
We make sure you take advantage of certain investments to produce tax-exempt income (federal or state or both).

At Lion Tax, our commitment to excellence in business tax services remains unwavering. With a steadfast focus on maximizing your financial success, we navigate the complexities of tax regulations with precision and expertise. Our dedicated team of professionals combines industry knowledge with personalized attention to ensure your tax obligations are met and optimized to your advantage. Whether you're a small startup or a large corporation, we tailor our services to fit your unique needs, providing strategic solutions that drive growth and foster long-term prosperity. Trust our proven track record, and let us be your partner in navigating the ever-changing tax landscape.

With Lion Tax by your side, you can rest assured that your business is in capable hands. Contact us today to experience the difference firsthand and unlock the full potential of your financial future. Let's embark on this journey together toward more tremendous success and prosperity.

A New Way to Look at Business Losses: How Net Operating Losses (NOLs) Can Be a Powerful Tool for Your Small Business

Many business owners feel discouraged when their company has a net operating loss, or NOL. It's easy to get down about it, but it doesn't have to be a bad thing! An NOL happens when your business's deductions are more than its taxable income for the year. But here’s some good news: you can actually use that loss to your advantage. It’s a great way to help with your small business tax planning and save you a good amount of money.

What is an NOL, and How Does It Work?

Simply put, an NOL is a tax benefit. The government lets you use a loss from one year to offset profits in other years, either in the past or the future. It’s like a credit you can use when you need it most. Before the Tax Cuts and Jobs Act (TCJA) of 2017, you could carry back an NOL for up to two years and carry it forward for up to twenty years. Now, things are a little different, and it’s essential to understand the new rules.

Here's what you need to know about the current NOL rules:

No Carryback, Mostly: For NOLs from tax years starting after December 31, 2017, you can't carry them back to previous years. This is a significant change, especially for new companies that might have a loss early on.
Indefinite Carryforward: On the bright side, you can now carry forward NOLs indefinitely. This means you can use that loss to offset taxable income for as long as your business is around, until the loss is completely used up.
The 80% Rule: This is a crucial one. For tax years starting after December 31, 2017, you can only use an NOL to offset up to 80% of your taxable income in any given year. So, if your company makes a profit, you can use your NOL to reduce your tax bill, but you'll still have to pay taxes on at least 20% of your income.

It can feel a bit complex, and that's okay! Many business owners find themselves scratching their heads when it comes to these specifics. That’s where getting professional help comes in handy.

Using NOLs for Strategic Tax Planning

Managing an NOL effectively is a key part of your overall financial strategy. It's not just about what you did last year; it's about what you're doing for the future. Thinking ahead with your small business tax planning services can make a huge difference.

Future Profit Offset: If you're a startup or a growing business, you might have losses in the first few years. Those losses become a valuable asset. You can use them to offset profits you'll make down the road, lowering your tax bill significantly during those profitable years.
Understanding the Timing: Since you can't carry back NOLs anymore, the timing of when you use them is important. We can help you figure out the best way to apply your NOLs to your future income to get the most benefit.
Avoiding Mistakes: The rules around NOLs can be tricky, and mistakes could lead to missed opportunities or even penalties. We see several companies miss out on important deductions because they don't understand the regulations. Our small business tax preparation services are intended to prevent this.

Don’t let an NOL feel like a setback. It’s a powerful tool in your financial toolbox. By getting our small business tax planning services, we can help you understand how to use your NOL to your best advantage, ensuring you're making smart, informed decisions that will help your business thrive for years to come.

Business Tax Planning Services FAQ

What is the difference between sales tax and income tax for businesses?
Sales tax is a consumption tax imposed by state and local governments on selling goods and services. Businesses collect sales tax from customers and remit it to tax authorities. Income tax, on the other hand, is a tax levied on a business's profits by federal and state governments. While sales tax is based on transactions, income tax is calculated on net income after deducting expenses. Both taxes are essential considerations for businesses and may vary based on jurisdiction.
What tax deductions are available for small businesses?
Small businesses have the opportunity to lower their taxable income by deducting various expenses, including operating expenses like rent, utilities, and wages. They can also deduct costs for equipment, supplies, and business-related travel. Moreover, they can take advantage of deductions for health insurance premiums, retirement contributions, and certain startup costs. To ensure eligibility and maximize deductions, it's reassuring to know that keeping detailed records and consulting a tax professional are essential steps.
How does depreciation affect business taxes?
Depreciation, a powerful tool, allows businesses to deduct the cost of tangible assets over their useful life. By spreading out the expense instead of deducting it all at once, it significantly reduces taxable income, thereby lowering the amount of tax owed. Various methods, such as straight-line depreciation or accelerated depreciation, determine the timing and amount of depreciation deductions. This understanding can fuel your optimism about accurate financial reporting and effective tax planning. Remember, consulting with a tax advisor can provide valuable guidance in this area.
How do you help me with tax credits and deductions?
We start by identifying all the tax credits and deductions available to your specific business and industry. From common expenses like supplies and travel to more specific credits for things like hiring certain employees, we make sure no opportunity is missed. Our job is to stay up-to-date on all the latest tax laws so you don't have to, ensuring you take full advantage of every legal benefit.
Can you help me with sales tax and payroll tax compliance?
Yes, we absolutely can. We have a lot of experience helping businesses with both state and federal tax compliance, including sales tax and payroll tax. We can help you navigate the complex regulations, calculate what you owe, and ensure you meet all deadlines. This frees you up to focus on running your business without worrying about falling out of compliance.
What is the primary goal of your Business Tax Planning Services?
Our primary goal is to empower your business to thrive by maximizing your financial success and minimizing your tax liability through strategic planning. We take a proactive, year-round approach to your finances, going far beyond simple tax preparation. We analyze your unique situation to identify every opportunity for tax credits, deductions, and other savings, helping you make smart financial decisions that support your long-term business goals and foster prosperity.