Meet the Client
This week’s featured company is in Gillette, Wyoming and is engaged in providing oilfield services, primarily roustabout, piping, welding, and reclamation services. Our client’s primary concern was tax minimization as he projected that his company’s profit would increase to $1.5 million in 2019, an increase of over $1 million from 2018.
The company is currently structured as a single member LLC (taxed as a sole proprietorship). In addition to tax savings, the client wanted recommendations regarding a potential purchase of eighty (80) acres of real estate.
TAVAS recommended an entity structure which increased asset protection for the operating company’s extensive fixed assets and reduced the client’s overall tax liabilities. If our client implements TAVAS’s recommendations, he will save over $75,000 in taxes.
With regard to the real estate purchase, TAVAS reviewed a copy of the Contract to Buy and Sell Real Estate. For asset protection purposes, TAVAS recommended that the client form a new LLC and assign his individual rights under the contract to the new LLC so that the LLC purchases the real estate directly.