The tax effect of properly structuring the acquisition or disposition of a company can significantly impact the economics to both buyer and seller. Whether it is a spin-off, a sale of a subsidiary of a publicly held company, or the sale of a lifelong held business by its founding sole owner, the tax structuring of the transaction can have relevant consequences to the surviving entity. There are a number of tax planning opportunities that allow both parties to realize their objectives without affecting the other party’s objective.
There are employment tax considerations unique to a stock purchase, an asset acquisition or a statutory merger or consolidation. Proper management of the associated tasks and opportunities, from the due diligence phase through the post-implementation period will ensure that all potential tax-savings opportunities are considered at both the federal and state levels. While costs related to employment taxes typically do not dictate decisions relating to these transactions, pre-transaction planning and post-transaction review of the available employment tax opportunities can result in substantial tax savings. Call Today: (310) 842-7900