Tax Planning & Preparation
We can guide you through a full range of strategies to minimize your tax liabilities, maximize your cash flow and help achieve your financial goals.
Tax Credits & Incentives
Increase cash flow by minimizing tax obligations
Federal and state governments offer tax credits and incentives. From our experience, many closely held businesses are missing out on the opportunities available to them. Our team of tax professionals will assess your situation to help reduce tax liabilities and increase cash flow.
The Research & Development (R&D) tax credit is an incentive providing tax benefits for companies investing in innovation and process improvement. We work exclusively with entrepreneurs and understand the activities that do and do not qualify as a way to reinvest in the business. A complimentary assessment is all that’s needed.
Domestic International Sales Corporation (IC-DISC)
The IC-DISC is a tax deferral tool that can be used by U.S. companies exporting domestically produced goods. It is highly recommended that companies with a moderate amount of export sales explore the generous 15.8% tax savings the IC-DISC may offer.
Cost segregation is a tax savings tool allowing companies and individuals who have constructed, purchased, or remodeled business property to increase cash flow by accelerating depreciation deductions and deferring federal and state income taxes.
Many areas implement economic development incentives to promote growth. Governments use these tactics to attract new companies, retain existing companies, and create new jobs. Identifying location incentives can be beneficial when aligned with company goals.
Determine the optimal tax structure for your business
There are many ways to structure your business entity, including: C Corporation, S Corporation, Partnership, Limited Liability Company (LLC), Branch and Sole Proprietorship, which can create confusion for owners. We will analyze your situation and advise you on the advantages and disadvantages of each option.
C corporations in the U.S. permit unlimited classes of capital stock and restrict ownership to U.S. individuals. Profits are taxed at the corporate level and shareholders pay taxes on dividends, unless exempt. Corporations incorporated in the U.S. are subject to taxes on their worldwide income. The U.S. taxes at graduated rates and corporations are generally required to pay tax quarterly.
S Corporations in the U.S. permit one class of capital stock. Profits and losses flow-through to the individual owners, and are taxed as ordinary income, unless exempt. S corporations incorporated in the U.S. are subject to taxes on their worldwide income. The U.S. taxes at graduated rates.
U.S. partnerships permit unlimited classes of ownership, and profits and losses flow-through to the owners, unless exempt. Partnerships can be general or limited, which impacts the liability. Partnerships formed in the U.S. are subject to taxes on their worldwide income. The U.S. taxes at graduated rates depending on your taxable income. Quarterly tax payments are also required in connection with many states and any earnings allocated to foreign owners.
A U.S. LLC is a hybrid entity. Many companies are set up as LLCs due to the favorable flexibility this form creates. This type of entity can be structured in a variety of ways and can be customized to meet the specific tax reporting objectives of their owners.
If a foreign company establishes operations in the U.S., but does not establish a legal entity, the operations will be taxed as a branch. The branch is generally subject to U.S. income tax on effectively connected income at graduated income tax rates. A branch often allows the foreign company to deduct losses in the home country.
A Sole Proprietorship can have only one owner, is not required to prepare any specific formation documents, and is not required to obtain a tax identification number separate from its owner. A sole proprietorship does not provide any liability protection and is generally used for small start-up entities that have not determined the applicable structure.
Federal Tax Services
Get support with U.S. federal tax compliance and incentives
As a CPA firm working with closely held businesses, our knowledge of U.S. federal tax compliance and incentives helps us provide the invaluable support our clients need to compete in today’s challenging environment. Business owners rely on our proactivity to guide conversations around:
- Cost segregation
- Prepaid expense elections
- Research & Development (R&D) tax credits
- Compensation structures
- Employee versus sub-contractor classification
- Captive insurance
- Tangible property issues
- Energy credits
- Accounting method elections and changes
State & Local Tax Services
Minimize tax liabilities and maximize cash flow
Domestic and international companies doing business in the U.S. are often surprised by the complexities of navigating state and local tax laws and incentives. If you’re doing business in one or more states, let our knowledgeable and experienced tax team be your guide. We will work with you on ways to minimize your tax liabilities while maximizing your cash flow. Clayton & McKervey’s SALT services include:
- Taxable Nexus
- Allocation & apportionment
- Sales and use tax
- Personal property tax
Personal Tax Services
Personal tax strategies, planning and consulting
Our Private Client Services team provides tax strategies, planning and consulting services for private business owners. Whether you need minimal support or the benefit of a family office, our team can guide you and your loved ones at all stages of your business life cycle, even after you exit the company. Our clients count on Clayton & McKervey’s private client services for accessibility, education and a personal approach to your situation.
Other Tax Filings
Receive accurate and timely documentation
Our team of CPAs prepares the full range of tax documents for local, state and federal governments. Our primary goal is to always provide timely and accurate documentation, including:
- Annual returns
- Quarterly estimates
- Franchise report and annual reports
- Sales and use
- Registration and filings
- Reporting of foreign financial assets