Pass-Through Entities

If you’re forming a pass-through entity—such as an S-corporation or partnership—preparing for an owner’s exit, or restructuring, it’s important to keep the tax impact aligned with your company’s business plan. Our professionals have the experience and knowledge necessary to help you keep your taxes in check and satisfy your business needs.

We start by obtaining a detailed understanding of your particular organization and the deal points leading up to its formation, drawing on that knowledge to plan for your ongoing operations as well as any anticipated exits or future transfers of assets to key individuals.

Our tax compliance and planning team then takes a comprehensive approach, working with you to address your year-to-year tax and long-term transaction planning side by side. When a transaction does become imminent, we know exactly what it means to your organization and how we can structure it to align with your goals.

We can help you:

• Understand partnership income and loss and distribution provisions in partnership agreements
• Perform S corporation stock and debt basis planning
• Structure compensation arrangements to for both partners and shareholders and incentivize management
• Reduce current tax liability through effective tax basis recovery
• Reduce ordinary income gain upon a partner’s exit
• Provide cash flow flexibility for retiring partners and shareholders
• Effectively plan for earnings and profits distribution events

Contact us to learn how we can help your pass-through entity streamline its transactions, operate efficiently, and transition seamlessly in a tax-efficient manner.