Mergers and Acquisitions
An existing company, either an LLC or a corporation may want to acquire another company or merge with another one. At these times, proper tax planning is essential. This may be an opportunity to defer the tax or avoid unintended tax consequences. However, you must strictly comply with the tax code to take advantage of it. Proper contracts and documentation will ensure that the IRS will honor the intended tax benefits. Furthermore, the contracts will protect the companies to clarify what each intended in the transaction.