Multi-State Expansion Tax Considerations

Boutique advertising agency with national clients was requested to provide services that required establishing a presence in a state with aggressive tax laws and collections agencies. To do so would potentially subject a significant portion of all agency revenues to potential tax in that state. Collaborating with tax attorneys, ChurchillTerry was able to structure a separate entity in such a way to avoid the tax issues and still satisfy the agency's client with high quality employees and services while retaining consistent profit margins. A subsequent random audit by the state confirmed the validity of the tax strategy and resulted in no additional taxes for the agency.