Essentials of Tax Planning and Filing for Kansas Businesses

Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.

The goals of every Kansas business include minimizing taxes, while ensuring compliance with federal and state statutory and regulatory requirements. Accomplishing that goal requires understanding key considerations that are essential in the current environment. As businesses focus on reviewing financials and filing for the tax year 2021 and look for improvements to make in 2022, our business law attorneys at Sloan Law Firm provide an overview of the important factors every business should take into account in business and tax planning.

Importance of the Legal Structure of Your Business

One of the most important factors in determining taxation of your business is the legal structure. The choice of legal entity for a business affects federal and state filing requirements and application of existing and new tax laws, as well as internal operating and organizational requirements of the business.

Many business owners choose a legal structure when establishing a company and never consider whether a different type of structure might provide greater tax and business benefits. As a business grows and changes, revisiting the choice of entity may yield surprising results. Choosing the right legal structure for a business involves a wide range of considerations, with liability and taxation being among the most important.

Due to the complex legal issues involved in tax and liability matters, reassessing the structure of your business should be accomplished with assistance from an attorney. Our business lawyers have the experience and knowledge to help business owners reevaluate their legal structure. We can also assist with implementation if a change of structure turns out to be the best course for your business.

Value of Professional Advice in Tax Planning

Many business owners rely on a financial professional when it comes to conforming operations to tax requirements and filing the necessary forms and reports. For the tax years 2021 and 2022, your accountant has to take into consideration a number of changes in tax laws and regulations that may affect your business, including:

  • Payment of deferred employer Social Security payments
  • Employee Retention Credits (ERC)
  • Changes in net operating rules
  • Excess business loss limitation rules
  • Interest expense limitation
  • Changes in the qualified business income deduction
  • SALT (State And Local Tax) deduction and impacts
  • Availability of small-business taxpayer exemption methods (“small” meaning average annual gross receipts of no more than $26 million for 2021)
  • Changes to fringe benefit deductions
  • Changes to depreciation and expensing for businesses
  • Multi-state tax compliance for businesses with remote workers

The preceding list is not all inclusive, but it illustrates the range of tax law details that may apply to tax calculations and reporting for your business in 2021 and 2022.

The importance of reliable financial advice for a business owner cannot be understated. However, many business owners do not realize that sound advice from business legal counsel often also has significant benefits and value. Our business attorneys routinely help our clients with business tax planning and filing at the federal, state, and local levels, including all the changes affecting 2021 and 2022 taxes. We also assist our business clients with other matters that critically affect a business, such as:

Regardless of what business and tax planning concerns you face as a business owner, our business lawyers provide the advice and support you need to protect your business and help it thrive into the future.

Legislative Changes and Tax Planning

Changes in tax laws and regulations affecting businesses have occurred at a dizzying pace in the last few years, particularly at the federal level. The focus on tax issues in Congress is not likely to wane anytime soon. Business owners always need to stay vigilant and be prepared to change course to accommodate legislative changes — and that fact was never truer than it is now.

The Biden Administration’s proposed Build Back Better plan stalled in Congress at the end of 2021 for political reasons. That plan or alternatives to it are likely to resurface in 2022. House and Senate Bills relating to the original plan contained substantial tax law changes affecting the country’s businesses. New legislation in 2022 probably will include some of the same provisions.

When you rely on a business lawyer to help with your operations and tax planning, one of your attorney’s most important services is to keep you informed about tax law developments and other legislative changes. Our business lawyers keep our clients fully informed about regulatory and tax law changes affecting their businesses. We work with clients to implement necessary changes in business financial and operational matters in response to legislative changes at the federal, state, and local levels.

Schedule a Consultation with Our Kansas Business Attorneys

Our business law attorneys at Sloan Law Firm assist clients with tax planning and filing, as well as a comprehensive range of other matters affecting business financial and operational matters. From our offices in Topeka and Lawrence, we help businesses of all sizes and types throughout the State of Kansas. We invite you to talk with us about business and tax planning by contacting us to schedule a consultation.

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Categories: Articles, Taxes