A Massachusetts Tax Lawyer for Business Planning

Whether you’re starting a business, ending one, or moving assets across a border knowing the tax impacts beforehand can help guide you to the most profitable strategy.

It may seem counterintuitive but if you’re starting a business from scratch you need to be thinking about taxes long before you’ve earned your first dollar.  If you don’t, it could cost you dearly come tax time.

  • Know which of your start-up costs are deductible, and which aren’t
  • Know which costs must be capitalized and recovered over time
  • Know which costs can only be capitalized and never recovered, unless you sell the business
  • Know the consequences if, god forbid, the business never opens at all.

Taxes are one of the largest reductions to income your business will incur.  Integrating that fact into your strategic planning will help you make better decisions every step of the way.

If you’re contemplating ending or selling your business then taxes should be first in your thoughts when setting the right price.  Whether viewed as a going concern or a collection of assets, no valuation can be meaningful without taking into account the tax consequences of the method of sale.

Perhaps instead you intend to expand or move your business into a cross-border market.  In that case the tax complexities are legion and need to be an integral part of all your planning.

  • You need to structure your business to take full advantage of the foreign tax credits available, both direct and indirect
  • Moving assets across a border, especially intangible assets, can have unexpected and severe tax consequences
  • Maintaining bank accounts and business interests overseas gives rise to new reporting responsibilities and severe failure-to-report penalties
  • The transfer pricing rules can cause your profits to arise in unexpected jurisdictions and, worse still, result in an even greater tax burden

Even if you only operate within the United States just expanding your workforce to meet a growing demand for your product or services can bring new tax responsibilities.  Trustee taxes, employee stock options, retirement plans, the new healthcare law, all require a careful eye focused on their potential tax consequences.

Tax, it is sometimes said, is the tail that wags the dog.  The plain fact is that in the operation of your business very few things will occupy more of your time, or require more resources to resolve, then the tax problems that arise from a failure to plan.  Tom is a top tax lawyer and can provide the insight and resources you need to manage that tax burden and help you grow your business.

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Did You Know?

Filing a joint return with your spouse may require you to pay his/her tax liability, even after your divorce is final.