State and Local Tax Minimization Strategies

Today, state taxes are a significant cost of doing business. Income, franchise, sales and use, employment and other miscellaneous taxes can significantly impact a company’s bottom line profit and stymie cash flow. Companies exist in a changing environment. The last issue on your mind is taxes. You focus on company operations such as sales, customer needs, employees and stakeholders’ requests.  

Hall & Company’s state and local specialists   evaluate the various organizational needs of companies. Quick growth can prevent a company from benefiting from its existing structureand/or operations from a state tax perspective. Downsizing can lead to new state unemployment tax liabilities. A merger or acquisition can mean a whole new corporate structure and state tax concerns. Consistent business activity year after year can lead to the status quo.

Our state and local specialists take a four-phased approach to address and simply the specific needs of your company. 

Our approach is organized into the following phases: 

1.​Fact Finding

2.​Analysis and Assessment

3.​Implementation

4.​Evaluation

At the completion of the implementation phase, you receive a comprehensive report, which outlines the strategies implemented and why, the tax technical support for each, a refined calculation of the applicable tax savings (including the identification of any reduction in administrative burden), and the corresponding tax filing requirements.

In the evaluation phase, a formal review process is undertaken to critique whether the implemented strategies are achieving the desired tax benefits. If not, we work with you to either develop a plan for corrective action or enhance the strategies implemented.              

Whether a tax minimization strategy for you is as simple as choosing the appropriate entry form or involves restructuring operations into special purpose entities, a discussion of your company’s key business drivers and issues may lead to considerable savings in one or more of the following taxes:

•​Income Tax Planning– In our review of your state income tax positions, we check for opportunities in the states you file and look at alternative methods for creating refunds and future savings. 

•​Net Worth Tax Planning– Planning opportunities exist in some states to limit or eliminate your company’s net worth tax. We evaluate your situation to determine whether you can take advantage of the tax-saving methods available.

•​Sales/Use Tax Planning– Most businesses with multistate operations face the burden of sales and use taxes. With planning, you can position your company in a manner that minimizes the impact to your bottom line.

•​Unemployment Tax Planning– Companies with high unemployment insurance rates can take advantage of planning opportunities to reduce the significant costs associated with unemployment taxes.