Corporate Restructuring

Utah Corporate Restructuring Attorneys

Restructuring your business in Utah may be an answer to incurred income or tax debt. When a business accumulates tax obligations that exceed its ability to pay under normal operations, restructuring offers alternative paths to resolution.

When Is Corporate Restructuring Appropriate?

Corporate restructuring may be worth exploring when:

• •Your business has accumulated tax debt that exceeds its current ability to pay
• •The business is still viable but burdened by historical tax liabilities
• •You are considering selling or merging the business
• •The current entity structure is creating unnecessary tax burdens
• •You need to separate profitable operations from a debt-laden entity

Restructuring Options We Evaluate

Entity Conversion

Converting from one entity type to another (e.g., C corporation to S corporation, or LLC to corporation) can change how taxes are assessed and can sometimes provide more favorable treatment of tax debt.

Asset vs. Stock Transactions

In the context of a business sale, structuring the transaction as an asset purchase rather than a stock purchase may allow new ownership to begin with a clean slate regarding tax liabilities.

Subsidiary and Holding Company Structures

Separating business operations into different entities can isolate tax liabilities and protect certain assets from collection.

Combination with Bankruptcy

In some cases, a Chapter 11 reorganization combined with a corporate restructuring plan provides the most comprehensive solution for businesses with significant tax debt.

Important Cautions

Corporate restructuring to avoid tax liabilities must be approached carefully. The IRS has broad authority to challenge certain restructuring transactions as fraudulent conveyances or as lacking substance. Any restructuring involving significant tax debt requires experienced legal counsel.

Call Michelle Turpin P.C. at (801) 685-0552 to discuss whether restructuring makes sense for your situation.

This content is provided for informational purposes only and does not constitute legal advice.