what advisors need to know about the structures under which their clients do business.
by blake christian
as many advisors have learned, the 2013 increase in personal federal income tax rates – up to 39.6 percent, plus a potential 3.8 percent federal tax on net investment income (nii) – combined with a drop in the maximum estate and gift tax rate to 40 percent (only on net assets of $5.34 million per spouse), significantly changed estate tax planning for most taxpayers. it’s especially important for your successful business owner clients.
more: 11 tax client questions for year-round billings
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one of the most common questions i get from clients and friends is about which legal structure they should opt for to run their new or existing business. my standard answer is, “well, it depends.”