Plante Moran’s tax consulting experts can help you minimize franchise taxes
Many franchisees, franchisors, and multi-unit businesses aren’t using all of the tax minimization techniques available to them. Plante Moran’s team of tax experts specialize in helping you find these opportunities and apply them to maximize impact on your business.
Cost segregation: an underused technique by franchisors
Although cost segregation has been a viable tax minimization technique for many years, many franchise industry organizations and multi-unit entities aren’t leveraging the benefits. Cost segregation allows companies to treat certain construction costs as components of machinery or equipment rather than as part of the building itself. This, in turn, allows companies to depreciate these costs over a five- or seven-year period versus the traditionally longer periods associated with real estate. Plante Moran’s tax team can help organizations segregate fixed assets into their appropriate depreciable lives, often saving hundreds of thousands of dollars in the process.
Multi-state taxation strategies for franchisors, franchisees, and multi-unit entities
State and local tax issues are inherently complex. Our tax team can help organizations with multi-state locations identify and handle all of their many tax concerns. Whether the organization is facing a sales, use, or property tax problem or just trying to determine which states to file income tax returns, we can help you develop the right tax-planning strategy to ensure you’re paying what you owe—no more, no less.
Franchise Tax credit opportunities
Our tax consulting experts stay up to date on the latest tax credit opportunities. The Work Opportunity Credit, for example, is applicable to anyone in either the retail or service arena. This credit affords companies at least $2,400 per employee (assuming certain criteria are met). Many franchise industry organizations and multi-unit entities believe this process to be cumbersome; although it’s complex, it’s become a much easier process over the past few years. Plante Moran’s tax experts can guide you through it.
Franchise Tax accounting methods
Deciding whether to defer or accelerate income and expenses can have a significant effect on a company’s tax position. Our tax experts can help you determine the right accounting method for the right situation, saving significant dollars in the process.