minimize your federal & state tax exposure

That is a guiding principle behind every tax planning meeting or discussion, and every federal tax form we complete on behalf of our clients.  We want to help them maximize their after tax cash flow, as well as the wealth they can ultimately pass onto their loved ones or charities.  We want to help them structure their business in the most tax effective manner without losing sight of the underlying needs of the business.  Because, at the end of the day, we are judged on how well we help our clients thrive in an increasingly competitive marketplace.  Here are some issues that we can help you with:  

How can I maximize my after tax cash flow?

Throughout each year, new tax issues and opportunities emerge that can have a dramatic impact on the amount of federal tax your business must pay.  We take very seriously our obligation to stay on top of these issues – and to keep you informed of them as they develop.  However, in addition to the new, there are numerous tried and true methods to reduce your taxes.  Methods such as: using flow-through entities to eliminate double taxation; ensuring that you have sufficient basis to take losses; purchase versus lease considerations; etc. Whether new or old, at Plante & Moran we embrace all existing legal methods in order to minimize the amount of taxes you pay.

How can I organize my business in the most tax effective manner? 

Should the business be incorporated or not?  If a corporation, should an S election be made?  Should there be more than one legal entity?  Would a partnership or a Limited Liability Company structure make sense for your business?  If so, can (or should) you elect to be treated as a corporation for federal tax purposes even if not incorporated under state law?  Should the new business be a subsidiary of an existing entity, or should it be a “sister” company?  There is no one right answer for everyone, so we look into your particular facts and circumstances – including your future plans for the business – to help you structure the company in a tax efficient manner. 

How can I buy or sell a business in the most tax effective manner? 

Should you buy (or sell) the assets or the ownership interests?  Does a merger make sense?  Can you accomplish a tax deferred sale to a public company?  How does the nature of existing contractual relationships with vendors, customers and employees impact the deal?  Can (or should) you buy the stock but treat it as a purchase of assets for income tax reporting purposes?  When business owners can no longer work together, is there a tax effective way to accomplish the “business divorce”?  How will these decisions impact your tax liability as well as your financial statements? 

How can I increase the odds for continued success of my business after I’m gone? 

Do you have management in place that can effectively run the operations without you?  Do they have the financial wherewithal to purchase the company?  Is cash flow anticipated to be sufficient to help fund a leveraged buy-out?   Perhaps an ESOP structure would be effective.  If your children are to acquire the business, are you giving them the right kind of experience and exposure so that they can handle the responsibilities?