50
50 Years of Legal Experience
CPA since 1970
Lawyer Since 1973
30+ Years of Entrepreneurial Experience
Direct Attorney Access
Business Legal Planning That Accounts for Tax Consequences
Legal strategy should reflect the transaction, the commercial relationship and the owner's long-term goals.
Tax-Aware Legal Care
Tax-aware legal care means considering potential tax effects as part of legal planning. It does not mean that every legal decision should be driven by tax savings.
The legal structure must also support liability protection, ownership, governance, financing, operations, and the client’s long-term goals.
Business Decisions That May Create Tax Consequences
- Choosing an LLC, corporation, or partnership structure
- Electing S corporation tax treatment
- Compensation and owner distributions
- Adding, removing, or buying out an owner
- Acquiring or selling business assets
- Selling stock or membership interests
- Holding real estate inside a business entity
- Licensing intellectual property and receiving royalties
- Business succession and family transfers
- Changing the state or legal form of an entity
- Liquidation, merger, or reorganization
Legal and Accounting Roles
Arthur identifies the legal structure, documents, and tax questions involved in the decision. The client’s accountant or tax adviser may model the expected tax treatment, prepare returns, and advise on reporting.
Coordination helps reduce the risk that legal documents and accounting assumptions conflict.
Entity and S Corporation Planning
An S corporation election may create payroll and income-tax considerations, but the result depends on income, reasonable compensation, ownership eligibility, and other facts.
Arthur helps clients understand that the election affects tax classification and should be evaluated together with the underlying legal entity and governance documents.
Transactions and Succession
The tax results of an asset sale can differ from a sale of stock or membership interests. Payment timing, seller financing, earnouts, and allocation among assets may also matter.
Succession planning can involve income, gift, and estate tax questions. Early planning gives the owner and advisers more time to compare structures and funding methods.
Important Disclaimer
Information on this page is general and does not constitute legal, accounting, or tax advice. Tax consequences depend on the specific facts, current law, and the client’s complete financial situation.
Frequently Asked Questions
Is Arthur a CPA?
Arthur is a registered CPA in Illinois and has used his accounting training throughout his legal and entrepreneurial career. Confirm current credential wording before publication.
Does Arthur prepare tax returns?
The website should not imply that he provides tax return preparation unless separately confirmed. His legal work focuses on identifying tax issues and coordinating decisions with the client’s accountant or tax adviser.
Can an LLC elect S corporation taxation?
A qualifying LLC may elect S corporation tax treatment. The legal, payroll, and tax effects should be reviewed before the election.
Why do tax consequences matter in a business sale?
Asset allocation, entity type, payment structure, and the form of the transaction can affect the tax treatment of the buyer and seller.
Can Arthur work with my current accountant?
Yes. Adviser coordination is often useful when legal documents and tax reporting must reflect the same transaction.
Consider the Tax Questions Before Signing the Legal Documents
Once a transaction is completed, the available options may be limited.
Speak with Arthur before forming, restructuring, buying, selling, or transferring business interest.
