Business Taxation Attorney in Colorado

Tax Guidance for Colorado Businesses

Running a successful business requires owners to manage many moving parts, including issues of taxation that can critically impact profitability and long-term growth. For businesses in Colorado, the tax landscape is particularly intricate due to the interplay of federal, state, and local tax laws. As such, a sound tax strategy requires businesses to take a comprehensive approach to compliance, liability mitigation, and everything in between.

At The Harris Law Firm, we’re proud to offer businesses of all sizes the experienced, insight-driven counsel they need to protect their interests, grow, and prosper. Our Colorado business tax attorneys have helped hundreds of companies across a range of industries save millions of dollars in taxes through proactive planning and reactive defense and negotiation. Whether you’re looking to start and build a business or need support for an audit or collections matter, we can help.

If you have questions about our business taxation services or wish to discuss a tax-related matter with a member of our team, we’re here to help. Call (303) 622-5502 or contact us online to request a FREE and confidential consultation.

Understanding Business Tax Obligations

Businesses in Colorado encounter a range of tax obligations that can vary widely depending on the industry, structure, and operations of the business. Failure to properly address these obligations can result in audits, penalties, and other legal complications. Key tax issues include:

1. Corporate and Business Income Taxes: All businesses, whether organized as C-corporations, S-corporations, partnerships, or sole proprietorships, must report income and file taxes. Colorado imposes a flat corporate income tax rate of 4.4%, but federal tax obligations can vary significantly depending on your business structure. For example, S-corporations and LLCs are pass-through entities, meaning profits are taxed at the individual level, while C-corporations face double taxation on corporate income and dividends. Understanding these differences and selecting the appropriate business structure is crucial for minimizing tax liability.
2. Sales and Use Taxes: Colorado imposes a base state sales tax of 2.9%, but local jurisdictions often add additional sales and use taxes, resulting in rates that can vary significantly across the state. Businesses that sell goods or taxable services must navigate this patchwork of tax rates, along with ensuring compliance with both state and local reporting requirements. Ensuring accurate sales tax collection and remittance is vital for avoiding penalties and audits.
3. Employment Taxes: Employment taxes are another major area of concern for businesses with employees. This includes not only federal payroll taxes (Social Security, Medicare, and federal unemployment tax) but also state-level requirements. In Colorado, businesses must contribute to the state unemployment insurance (UI) program, as well as the Family and Medical Leave Insurance (FAMLI) program, which provides paid leave benefits to employees. Mismanagement of payroll taxes can lead to serious legal consequences, including personal liability for business owners.
4. Excise and Industry-Specific Taxes: Some businesses, particularly those in specialized industries, may be subject to excise taxes. For example, businesses involved in the sale of alcohol, tobacco, or fuel must comply with both federal and state excise tax laws. Cannabis businesses face unique tax challenges due to federal restrictions, making compliance even more complex. These industry-specific taxes require careful attention to detail and strategic planning to ensure compliance.
5. Property Taxes: Businesses that own real property in Colorado are subject to property taxes, which are assessed at the local level. Property taxes can also apply to personal property used in business operations, such as machinery, equipment, and other assets. Ensuring accurate valuation and assessment is critical for minimizing your property tax liability.  Although property taxes have what is known as “super priority” and there are limitations with respect to objecting to or negotiating these tax liabilities, proactive planning with respect to addressing these obligations can be vital. 
6. Franchise Taxes: Certain businesses, particularly corporations and LLCs, may be subject to franchise taxes or fees that are assessed based on their business activities within the state. Understanding these additional taxes and ensuring compliance is important for businesses operating across multiple jurisdictions.

Strategic Tax Planning for Businesses

Effective tax planning is not just about minimizing your tax liability in the short term—it’s about creating a sustainable tax strategy that supports your long-term business goals. At The Harris Law Firm, we offer a range of strategic tax planning services designed to help businesses maximize profitability and avoid potential tax pitfalls. Our approach to tax planning includes:

• Entity Selection and Optimization: Choosing the right business entity is one of the most important tax decisions you’ll make. Our attorneys help you evaluate your options—whether it’s forming an LLC, electing S-corporation status, or transitioning to a different entity type—as your business evolves. We focus on optimizing your tax position while ensuring compliance with state and federal laws.
• Maximizing Deductions and Credits: Identifying all available tax deductions and credits is key to reducing your overall tax burden. This may include deductions for business expenses, depreciation of assets, research and development credits, energy-efficient investments, and more. Our team partners with CPAs directly to review these options and ensure that your business takes full advantage of every opportunity to lower your tax liability while maintaining compliance.
• Multi-State and Local Tax Issues: If your business operates across state lines or has multiple locations, multi-state tax compliance becomes a significant concern. Our attorneys help you navigate the complexities of different state and local tax laws, ensuring that your business complies with all applicable regulations and avoids penalties.

Tax Compliance and Reporting

Staying compliant with all applicable tax laws is a continuous responsibility for businesses, and failure to do so can have severe financial and legal consequences. At The Harris Law Firm, we offer comprehensive tax compliance services to help businesses meet their obligations and avoid costly penalties. Our services include:

• Audit Defense and Representation: If your business is selected for an audit by the IRS or the Colorado Department of Revenue, our attorneys are here to protect your interests. We provide expert audit defense and representation, helping you respond to audit requests, challenge improper assessments, and negotiate resolutions that minimize the financial impact on your business.
• Tax Disputes and Appeals: When disputes with tax authorities arise, having experienced legal representation can make all the difference. We represent businesses in disputes with the IRS, state tax authorities, and local governments, helping to resolve issues through negotiation and appeals,. Our goal is to achieve the best possible outcome for your business, whether that involves reducing your tax liability, avoiding penalties, or resolving a complex tax issue.
• Ongoing Compliance Support: Tax laws are constantly evolving, and businesses need to stay up to date with the latest regulations. We provide ongoing compliance support to help you navigate changes in tax law, implement new regulations, and avoid future tax problems. Our proactive approach ensures that your business remains compliant and prepared for any tax-related challenges that may arise.

Why The Harris Law Firm for Your Business Tax Needs?

At The Harris Law Firm, we understand that every business is unique, with its own set of challenges and goals. That’s why we tailor our services to meet the specific needs of your business, industry, and financial objectives. Here’s what sets us apart:

• Experience Across All Tax Issues: From federal tax law to Colorado-specific regulations, we have the knowledge and experience to handle all aspects of business taxation. Our attorneys stay up to date on the latest developments in tax law to provide you with cutting-edge advice and representation.
• Personalized and Proactive Service: We don’t believe in one-size-fits-all solutions. We work closely with you to understand your business’s unique needs and challenges, offering personalized service and proactive tax strategies that help you achieve your goals.
• Comprehensive Tax Solutions: Whether you’re just starting out or managing a thriving enterprise, we offer a full range of tax services to support your business at every stage. From tax planning and compliance to audit defense and dispute resolution, we’re here to help you navigate the complex world of business taxation.

Call For a FREE Consultation: (303) 622-5502

The Harris Law Firm’s tax law practice is helmed by Steve Cizik, a trusted tax attorney with extensive experience providing proactive and reactive representation in complex taxation issues. Over the course of his career, Steve has helped hundreds of businesses save millions of dollars through pragmatic negotiation and allow business owners to break free from the paralysis tough tax issues can create. 

If you need assistance with any aspect of business taxation in Colorado, The Harris Law Firm is here to help. Contact us today to schedule a consultation and find out how we can support your business's success.