ADTS
ADVANCED TAX STRUCTURES: USING TIERED PARTNERSHIPS, MULTIPLE CORPORATIONS, SERIES LLCS, AND DISREGARDED ENTITIES

Business entities serve non-tax objectives as well as tax objectives, and many clients need multiple entities to realize both in an efficient way. In this litigious climate, business owners need to consider methods of reducing their exposure to legal liability. Further, states are much more aggressive in pursuing nexus tax liability. Exploring when to run a business as a single entity or when to step up to multiple entities is a growing area of business and tax planning, and not just for large and public companies.

Major Topics:

  • Understanding the limits of legal liability and the management rights and duties in various entities
  • How multiple business entities provide legal liability segregation
  • How the Delaware Series LLC can segregate risks while providing pass-through taxation
  • Series LLC regulations - what we now know and what we still don't
  • Identification of different types of structures such as subsidiaries, brother/sister companies, tax disregarded entities, and joint ventures
  • Maximizing the benefits and minimizing the problems with using Qualified Subchapter S Subsidiaries and Single Member Limited Liability Companies
  • Using multiple business entities to diversify business ownership as incentives for management teams
  • State tax law and nexus issues
  • How holding companies can serve business goals
  • Using different methods of accounting for different related entities
  • Related issues, including using common paymasters, related party issues, and much more!

Learning Objectives:

  • Identify circumstances where multiple business entity structures could be appropriate
  • Discuss the pros and cons of various business structures
  • Understand the related tax issues

Designed For: CPAs in public practice and industry who want to learn more about structuring businesses in effective and efficient ways
Level of Knowledge: Advanced
Prerequisite: A strong knowledge of general tax law related to business entities
Advanced Preparation: None
Credits: 8