| An ideal lawyer will not just have a string of impressive | | | | understand clearly about accounting systems and tax |
| credentials or gold lettering on his door. He or she will | | | | planning. Sit down with your accountant and plan on |
| be caring, concerned, and devoted to their work. You | | | | ways of maintaining business expenses, filing receipts, |
| need to think carefully before laying your trust in a | | | | planning on "tax saving" investments, and a strategy |
| lawyer after all in some cases your life, future, money | | | | for running the business in the most beneficial way. Did |
| or property will be in his hands. Apart from doing | | | | you know that: 1. According to law you can reduce |
| extensive research to short list possible lawyers you | | | | your tax liability by hiring family members to carry out |
| must ensure that there is not conflict of interest, that | | | | work in your business. Pay your children and spouse to |
| you understand everything the retainer agreement | | | | perform assigned duties. This way you can shift from |
| states, and that you have checked the references and | | | | higher tax rates to lower ones. 2. Consider hiring |
| details regarding the practice. You will know the lawyer | | | | independent contractors instead of employees. You |
| you have chosen is the perfect one if: 1. He makes an | | | | will save on payroll taxes. However ensure that you |
| effort to spend time to understand your case himself. | | | | meet the IRS's criteria. 3. Think about "deferring |
| He will not assign a legal assistant to take facts of the | | | | income" postpone receiving money to January instead |
| case down. 2. From experience and knowledge he will | | | | of December. This means that payments received will |
| know what is relevant and what is not. He will set | | | | be up for "tax" calculations a year away. However |
| aside and ignore irrelevant facts, opinions, and personal | | | | ask your accountant's advice as the benefits are |
| emotions that cloud the case on hand. 3. He will insist | | | | dependant on profit and losses for the year and your |
| that the footwork for the case be done thoroughly. All | | | | corporate legal structure. 4. Take advantage of tax |
| facts must be checked for accuracy and solid | | | | deductions allowed for charitable donations. Make |
| arguments jotted down with backing of earlier rulings. | | | | donations in November or December instead of |
| 4. He will not just focus on the problem at hand but | | | | January so that you can include the donations for tax |
| examine the problem from all sides. This will create a | | | | deductions in the current year. 5. Maximize your |
| complete picture highlighting all factors of relevance | | | | expenditure on equipment and office supplies. Buy in |
| and the different ways one can approach the case. 5. | | | | advance for a quarter and use the tax deductions |
| He will use his foresight and anticipate moves by the | | | | allowed in the current fiscal year. 6. Include expenses |
| opposition or opinions of the jury or judge and plan | | | | of business related travel in the current year. 7. Pay all |
| way ahead. Like a master chess player he will plan the | | | | bills due before the end of the year. Payment to cell |
| case not by the day but by many hearings ahead. 6. | | | | services, rent, insurance, and utilities related to the |
| He will not waste time beating around the bush or | | | | business can be included for accounting and applicable |
| create verbose statements-many words strung | | | | tax waivers. 8. Plan a retirement plan and make |
| together which look impressive but mean nothing. He | | | | payments before the end of the year. This will reduce |
| will insist that the case and its arguments be clearly | | | | your income for the year and proportionately the tax |
| stated. 7. He will be self-disciplined, thorough, and self | | | | due. Be sure to check on the limits. Plan a feasible and |
| confident. Courteous at all times he will respect you as | | | | beneficial strategy with your accountant. 9. Be sure to |
| well as all the staff who work for him. 8. He is | | | | deduct from your taxable income money paid to |
| recommended by not just his friends and relatives but | | | | licensing fees, businesses taxes, and annual |
| by other professionals of good standing and from his | | | | memberships to businesses related organizations. Be |
| field. 9. He will not just present to you his victories but | | | | sure to deduct interest paid on borrowings for running |
| be happy to tell you why and how he lost certain | | | | the business and related fees. Insurance premiums |
| cases. 10. He will lay the cards on the table and tell you | | | | paid to insure the business office and machinery are |
| clearly whether your case stands to win or loose. He | | | | eligible for tax deductions. Make a list of your |
| will not claim that winning is guaranteed. He will be | | | | memberships and check which ones are eligible for |
| honest and upfront about his opinions and advice. The | | | | tax deductions. 10. Check whether you have deducted |
| bottom line is that the lawyer must be worthy of your | | | | management and administration expenses as well as |
| trust. Use your inborn instincts and don't go by the | | | | money spent on maintenance and repairs of |
| lawyer's good looks or fancy car or office. After all it | | | | equipment. Decide whether a cash accounting system |
| is competence in law and in court that is of essence | | | | or accrual one will benefit your business. The tax |
| to you. Everyone worries about taxes and looks for | | | | deductions are different depending on the system you |
| ways and means of reducing the tax burden. When | | | | use. When setting up your small business take the |
| you have a small business of your own you must up | | | | advice of a tax and accounting professional as to |
| date your knowledge of tax laws that pertain to "small | | | | which accounting system would be most suitable. |
| businesses." As a business owner you must | | | | |