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Minimize tax exposure for a new venture
You have $4.6 million to get your venture off the ground and a year before you open your doors. As the tax research and planning expert, it is your task to ensure your company is set up to minimize your tax exposure. The business will be registered in the city and state in which you live.
1. Briefly describe your new business (name and what it does).
2. Discuss how you will form your corporation and how you will comply with specific regulations in your state (note the need for research here).
3. Determine the most appropriate capital structure for minimal tax exposure.
4. Discuss the tax planning considerations you must take into account after the first year (when you are actually open for business).
5. Determine how non-liquidating distributions will be addressed.
6. Cite at least two (2) tax research sources.