Business transactions almost always have Federal income tax consequences. Without proper planning, these consequences can be unintended and unpleasant. The Firm provides proactive planning for its clients so that the tax consequences are in line with the client’s expectations. The Firm’s tax planning includes:
- Structuring the incorporation of new and existing business to avoid triggering taxable gains.
- For clients selling businesses, structuring the sale to minimize and defer the payment of tax on gains from the sale.
- For clients buying businesses, structuring the purchase to maximum future income tax deductions.
- Planning for the Texas Margin Tax.
- Structuring and planning for impact of sales taxes on business transactions
- How is my Business Taxed?
How is my Entity Taxed
Federal tax law provides Entrepreneurs with many options for how their business will be taxed. Generally these include, sole proprietorships, partnerships, S Corporations and C Corporations. Each of these options provides different planning opportunities. The Firm helps its clients work through the options to determine which will work best for their businesses.
High Net Worth Clients
High net worth individuals face a Federal estate tax equal to 40% of their accumulated assets (above applicable exemptions, credits and deductions). The Firm works with high net worth clients to develop strategies to minimize the impact of the Federal estate and gift tax. Some of these strategies are set forth in the Estate Planning section.
Many of the Firm’s high net worth clients have a significant amount of assets in IRA’s, 401(k)’s and other retirement plans. The Firm works with clients to create plans to pass these assets on to their beneficiaries in a manner that shields the assets from liabilities and defers the income taxation of the benefits.