Business owners in New York are likely already aware that they operate under burdensome taxes. A major accounting firm recently rated New York City as last out of 31 cities in the country at providing favorable tax climates for businesses. According a 2014 competitive tax analysis conducted by Forbes magazine, New York was found to have the highest tax cost in the country and the second highest total business costs behind San Francisco.
The cities that rated as being the most tax-friendly included Pittsburgh, Baltimore, Atlanta, Cleveland and Cincinnati. The report analyzed the total tax burden realized by businesses located in 107 cities spanning 10 countries. Ratings in the report were based on analyzing data concerning statutory labor costs, miscellaneous taxes on local businesses, property taxes, sales taxes, capital taxes and corporate income taxes. New York also ranked 48th in manufacturing and 40th in corporate services, research and development and digital services operations.
Business owners and entrepreneurs who need help with understanding the complicated federal, state and municipal tax codes and regulations often benefit from consulting legal counsel. Tax planning attorneys routinely assist commercial clients with launching startups and transaction structuring as well as creating safeguards and legal protection for the enterprise and owners.
Businesses that are involved in tax disputes may also find a meeting with legal counsel to be advantageous as well. These legal professionals might be able to negotiate more favorable terms with IRS agents along with the services of an accountant. A tax attorney might also be effective in solving issues involving international tariffs, real estate taxes and other related matters involved in operating a business.
Source: New York Business Journal, “New York last for business tax-friendliness, study says“, June 24, 2014