How Much Will a Tax Attorney Cost a Small Business in Maryland?

Many small businesses do not consider hiring a Maryland tax attorney unless they run into tax problems, such as an IRS audit. Business owners rely on their accountants or bookkeepers to handle tax matters.

However, hiring a business tax lawyer can help avoid tax-related litigation and other tax problems. The attorney assists the company with tax planning and compliance issues even before the company opens for business.

How Much Does a Tax Attorney Cost?

There is not a set rule or standard for how much a tax attorney charges for services. Some tax situations are more complex and require more work. Therefore, the tax attorney charges higher fees for those services. Simple cases would not require as much work. Therefore, the legal fees for those cases may be less.

Another factor that impacts the cost of hiring a tax attorney is the attorney’s experience and skills. Tax lawyers who have years of experience and have substantial knowledge regarding tax laws and business law generally charge higher rates than attorneys just beginning their practice. There are definite advantages of hiring experienced lawyers, especially if your tax problem is complicated or you are facing tens of thousands of dollars in penalties and possible jail time.

A tax attorney may charge a flat fee or an hourly rate. Flat fees are one-time charges for a specific service. A flat fee may be used for a routine matter or simple case. Most tax attorneys charge hourly rates. The hourly rate depends on several factors, including the type of tax matter and the attorney’s experience and skills.

Whether you choose a tax attorney that charges a flat rate or an hourly rate depends on your needs and budget, there are advantages and disadvantages to both types of legal rates. A flat rate allows you to budget for the fee, but you could be overcharged for services. Hourly rates could save you money by ensuring you are only charged for the time the lawyer spends working on your case, but you do not have an exact figure for how much it will cost to resolve your tax matter.

Why Should I Hire a Tax Lawyer for My Startup?

Small business owners make decisions regarding tax matters even though they may be unaware of it. For example, choosing the business structure significantly impacts the company’s taxes. A tax attorney helps small business owners understand the types of taxes they must pay based on their business entity. A lawyer can help an owner choose the best business structure for the company and tax planning.

Tax lawyers also help small business owners address other tax matters such as sales tax, employment taxes, and ways to maximize deductions to minimize taxes owed at tax time. Complicated rules regarding depreciation and complex deductions can be confusing. A tax lawyer ensures the small business owner takes full advantage of these tax-saving tools. Tax attorneys can also assist during contract negotiations to explain the tax implications of the agreement.

If you are audited by the IRS, an experienced tax lawyer is an asset. The tax attorney can represent you during the audit, appeal unfavorable decisions, and represent your company in tax court. Attorneys also work on penalty abatements and offers in compromise.

Contact Our Maryland Tax Attorney for More Information

Maryland tax attorney, Steve Thienel handles a wide variety of tax matters for small businesses. Contact us today.