Tax Planning Services: Safeguarding the Corporate Wealth
Today’s global business world has also brought with it a complex regulatory environment. Being spread across
geographical boundaries also requires organizations be in compliance with the local compliance regulations.
Corporate sectors and business house thus need to have proficient financial planners and tax professionals on
board to help them managing these compliances and other tax planning strategies.
Wikipedia defines regulatory compliance as the goal that corporations or public agencies aspire to in their efforts
to ensure that personnel are aware of and take steps to comply with relevant laws and regulations. The need for
corporate compliance arises from tax evasions, embezzlement, mail fraud and corruption. Corporate compliance
services provide a strong corporate management philosophy and help to identify and prevent violations of law by
the employees and directors of business and financial markets. However, with increasing number of regulations
and need for operational transparency, organizations look for consolidated compliance controls.
Effective Tax planning is important for the financial success of every business. The financial managers running tax
planning services help the corporate sectors and business enterprises to calculate their taxes, plan their finances in
the best possible way, and ensure growth of the organization. Irrespective of the size of the organizations, the tax
laws remain the same. The difference lies in the use legal technicalities and interpretations to organization’s
advantage and is dependent on the tax planning services to design and develop strategies to ensure low tax bills.
Strategic tax planning helps organization with manageable tax bills while maintaining their profits. A step ahead in
this regard is advanced tax planning services. Advanced tax planning is not used to break laws or regulations.
Instead, by using the services of a tax consultant the organization benefits by understanding the regulations and
can use these to its advantage. The financial planning partners with their expert knowledge of the taxation laws
provide business enterprises with customized decisions.
However, in case of corporations with a maximum of hundred shareholders, they tend to pass the profit or loss to
the shareholders. Under such circumstances, these corporations mostly referred to as the S-corporations, pay their
taxes through the shareholders. The S-Corp tax planning ensures that since these organizations pass-on the profits
to their shareholders they be taxed only once and that too at the shareholder level. Organizations that fall into this
category are those, which are basically a domestic corporation with not more than 100 shareholders on their list.
Further, the shareholders need to be either individuals, estates, certain trusts and exempted organizations and
should not be a partnership or corporate with non-resident shareholder. Effective tax planning services being the
cornerstone of wealth management, attorneys and tax professionals, from such service sectors help clients to
efficiently position their wealth.
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