Meet the Client
CLIENT: Our clients are a husband and wife ownership team, who are the sole owners of an LLC taxed as an S corporation. Their operating company is engaged in providing hauling operations for the oil and gas industry. The company hauls water, waste, septic, and construction materials, as well as chemicals for exploration and production companies.
WHAT OUR CLIENT WANTED: Our clients wanted to protect their extensive business assets using TAVAS’s expertise in recommending customized entity structuring. Our clients also wanted to minimize their extensive tax liabilities both in the present and in a potential future sale of the business.
HOW WE MET THEIR EXPECTATIONS: TAVAS recommended a comprehensive entity structure that will fortify our clients’ business assets from liabilities. During the course of the engagement, TAVAS discovered existing business practices that, if unaddressed, would have potentially exposed the clients’ personal assets to any liabilities or obligations.
TAVAS recommended a wide array of strategies designed to reduce our clients’ tax liability. In total, TAVAS’s strategies will generate over $200,000 as a first-year tax benefit and over $100,000 per year in the four years that follow. Additionally, TAVAS provided a variety of third-party sale options designed to minimize our clients’ tax liability when the sell their interests in the operating company.
TAVAS also learned that our clients would likely be subject to estate taxes based on their current personal assets as well as the projected growth of the company. TAVAS recommended additional strategies to address this future liability so they may be able to pass additional assets to their children without being subject to taxes. In total, TAVAS’s recommendations will completely eliminate a projected $1.6 million estate tax liability.