State Income and Franchise Tax - Tax Planning
Deloitte Tax LLP
Almost every business decision made in your company has an income or franchise tax consequence. Consideration of the state tax consequences should be part of your organization's decision-making process as early as possible. Having the resources and skill sets in place to implement and execute is also critical—probably one of the greatest hurdles many tax departments face.
Deloitte Tax can help you by supplementing the talent and experience of your in-house staff. We can also help you evaluate and prioritize opportunities in key areas, including:
Structuring – Your company's structure can significantly impact your tax exposure, especially in “separate company” states, and may impact your tax exposure even in “unitary” states. The use of credits and the manner in which different states apply sales factor rules are also considerations. We can help you determine what substantive business structure is most tax-efficient for you.
Transaction planning – State income taxes are an issue every time your company changes property, payroll or sales. The change could be caused by a merger, acquisition, divestiture, plant opening or closing, product introduction, a foray into new markets, new ways of doing business, refinancing or issuing debt. Yet often state tax consequences are not considered in strategic planning. If your organization does not have in-house staff with the time and experience to address these issues effectively, we can help you support transaction planning in your organization. It could make a difference in your company’s overall tax position and help elevate the visibility and stature of your tax department throughout your organization.
Due diligence reviews – We are a leading global provider of merger & acquisition transaction services, both to strategic buyers and private equity investors. From tax and business perspectives, we can add value to our clients' investments through rigorous due diligence that identifies “deal breakers” and “diamonds” early in the process and with innovative structures that maximize the value of the transaction. We can also provide transaction closing assistance that enables clients to maintain focus on day-to-day operations—and through sound tax-planning, incorporated early in the process—that aligns directly with the business objectives of the transaction.