Audio File: Download/Play Recording
Date: June 27, 2017
Guest Speaker: Steve Gorin, Partner, Thompson Coburn LLP
Host: John A. Warnick, Esq., Founder, Purposeful Planning Institute
Description: When your client transitions his or her business, having a better structure can save significant tax. Make sure your clients make the best choices up-front or are properly positioned for a planned sale.
- Income Tax Exit Strategies from Businesses by Steve Gorin (excerpted from Structuring Ownership of Privately-Owned Businesses: Tax and Estate Planning Implications)
- Income Tax Exit Strategies from Businesses Presentation Handouts
- An entity taxed as a partnership often saves the most income tax when transitioning to new owners or passing upon death.
- Start simply as an LLC taxed as a partnership or disregarded entity, then move it under a limited partnership umbrella when self-employment tax becomes significant.
- CPAs will often suggest S corporation status due to the benefits that exist for managing payroll tax. However, too much of a focus on payroll tax minimization often proves to be short-sighted.
For those desiring technical information, Steve publishes a quarterly newsletter, Gorin’s Business Succession Solutions, which includes the latest version of his materials, “Structuring Ownership of Privately-Owned Businesses: Tax and Estate Planning Implications” (over 1,300 pages in a fully searchable PDF), and highlights a few topics. To obtain the PDF and subscribe to the newsletter, go to http://www.thompsoncoburn.com/forms/gorin-newsletter.
Steve also maintains a blog, at http://www.thompsoncoburn.com/insights/blogs/business-succession-solutions. The blog is intended for those without a technical background, who would like more information on key business succession or structuring issues that intersect with the tax world. Steve’s blog also includes links to free quarterly continuing education webinars following up on his technical newsletter, as well as occasional other webinars.
Purposeful Quote: “Do the difficult things while they are easy and do the great things while they are small. A journey of a thousand miles must begin with a single step.” – Lao Tzu