A Small Business Owner's Guide To Hiring A Tax Professional
Taking the time to hire a tax professional for your small business is vital, as getting tax assistant can translate into having more money to put back into your business. Ideally, a small business owner should establish a long-term relationship with a tax professional. This way you have one tax expert who can learn everything there is to know about your business as they help your business with everything tax related. In order to make finding the right tax professional for your business a little easier, it helps to learn about the different kinds of tax professionals, what they offer, and why you should hire one.
Exploring Different Types of Tax Professionals
Technically, anyone can claim they are a tax professional; you do not have to be licensed by the IRS to prepare and file tax returns. For the sake of your business, it is vital to make sure the tax professional you hire is an enrolled agent (EA), certified public accountant (CPA), or tax attorney.
Enrolled Agent (EA): An enrolled agent is an individual who earned the right to represent taxpayers by passing a three-part comprehensive test through the IRS or by working as an IRS employee. The enrolled agent status is the top credential awarded by the IRS. Anyone with this status is required to meet certain ethical standards as well as completing 72 hours of additional education every three years.
Certified Public Accountant (CPA): CPAs are regulated and licensed by the state. CPAs perform business related accounting and tax work.
Tax Attorney: Just as the name suggests, a tax attorney is a lawyer who has obtained a specialized tax law degree. Tax attorneys can be expensive to hire. They are, however, extremely beneficial to hire when a business owner finds him or herself in a tax related legal issue.
Why Hiring a Tax Professional Helps Your Business
A tax professional can provide you with advice and information involving all aspects of business related taxes. He or she can assist with record keeping in order to keep the business organized, and he or she can help prepare and file tax forms, and represent you during all dealings with the IRS.
The biggest benefit to learning more about tax professionals and hiring one to handle the tax aspects of your business is the fact that it will free up your time to focus on other aspects of your business.
Contact a company like Jay Heino Company LLC to learn more.
