Byzantine world of tax
Understanding the Byzantine world of tax law and utilizing that highly specialized knowledge to a client's best advantage is absolutely essential to effective tax planning. However, the reality is that tax planning is the area that new businesses overlook the most when starting out. Indigo Legal Solutions can help you plan your transactions in order to maximize tax benefits and avoid unforeseen tax disasters. Whether you are implementing a new business venture, guiding a business through the start-up phase, managing business developments throughout the life of the business, or directing the sale or dissolution of a business or its assets, we can identify and plan for the associated tax consequences related to that activity at the stage you are in to best meet your needs and the goals of your team.
We work with individuals and organizations who are subject to tax laws around the world, including domestic and foreign entities, C corporations and S corporations, partnerships and limited liability companies, professional associations and sole proprietorships, trustees and executors, consolidated groups, disregarded entities, and tax-exempt organizations. Whether your transaction is related to your business or simply involves a personal investment, we can help you structure the transaction in order to achieve the best results under federal, state, local, and international tax laws.
Tax Planning Services Include:
Limited Liability Companies
Limited liability companies (LLCs) will generally limit your personal liability on the company's debts and obligations. There is only one level of tax with LLCs, as the business profits and losses are “passed through” from the LLC to the company’s members via Schedule K-1. However, the life of an LLC is usually dependent upon its members and transferring membership interests can sometimes be problematic without the proper agreements in place.
Like a sole proprietorship, general partnerships may be formed automatically when two or more people do business with the intent of making a profit. There need not be an official partnership agreement in place, nor an official registration with the Secretary of State, for a general partnership to be established; however, the liability protections offered to limited partnerships require both.
The liability protections offered by limited partnerships vary greatly with the type of partnership created. Generally, each partner must contribute to the partnership (cash, property, or sweat equity), and the profits and losses of the partnership are distributed in accordance with the partnership’s capital contributions. The profits and losses of the partnership are “passed through” to its partners via Schedule K-1.