One of the first and most critical steps in any tax-planning process is the creation of effective financial and tax structures that can withstand the scrutiny of taxing authorities and regulatory agencies. McDermott’s experienced tax lawyers work with closely held businesses, publicly traded corporations and multinational enterprises to develop, document and implement cutting-edge solutions that help achieve business objectives and minimize tax liabilities.
Our closely held business group focuses on the unique tax, corporate and other issues facing privately held businesses and their owners, with a focus on family-owned businesses. Our corporate taxation team offers a broad range of tax structuring counsel to tax clients and their affiliates organized as C corporations for US federal income tax purposes. The Firm’s pass-through taxation lawyers advise on the use of partnerships, limited liability companies, S corporations, real estate investment trusts (REITs), and other pass-through entities in sophisticated tax planning.
We have highly experienced lawyers who practice in the area of structured investments and derivatives, offering a full range of legal counsel relating to financial products, funds (both registered and unregistered), derivatives, tax credit investments and insurance products. Finally, as one of the preeminent advisory firms in the area of international supply chain planning, we help establish the legal entity structures under which a multinational enterprise develops, produces, markets and sells its products around the world.
Together, we help clients with the formation, operation and unwind of all forms of domestic and international joint ventures, private equity funds in fund formation and acquisition transactions, operators and investors on structuring complex real estate transactions, and other pass-through entities on achieving tax-efficient operations.
Our lawyers are pioneers in the structuring of alternative risk transfer mechanisms, specializing in captive insurance companies of all types. We focus not only on the development and structuring of creative risk retention and transfer solutions, but also on the operation of efficient risk-management programs designed to enhance business performance by aligning economic incentives with loss minimization to lower the enterprise’s cost of risk. We regularly advise on high-deductible and self-insured retentions, trusts, retro programs, offshore and onshore captives, risk retention groups, risk purchasing groups and group captives. For those clients whose captive arrangements are being challenged by the IRS, we offer effective tax controversy services, drawing on the experience of lawyers who have successfully resolved disputes at Examination, Appeals and the United States Tax Court.
Closely Held Businesses
Our Closely Held Business group represents 28 of the top 100 (including seven of the top 10) largest privately held businesses in the United States. We focus on the unique tax, corporate and other issues facing closely held businesses and their owners, with an emphasis on family-owned businesses. We provide comprehensive guidance on tax matters arising in the context of daily operations, mergers, acquisitions and other transactions, liquidity events, succession planning transactions, inter/intra-family disagreements (including multi-generational issues), liquidity needs and access to capital. We regularly develop client-service teams to provide effective tax counsel in the context of related legal and business concerns; these teams often include lawyers from our employee benefits, intellectual property, corporate and securities groups.
McDermott is one of the only law firms in the United States that provides comprehensive legal services to cooperative organizations. We represent cooperatives engaged in a broad range of products and services, including the manufacturing, marketing and wholesale distribution of agricultural products, farm supplies, hardware, groceries, hospital supplies, transportation products, credit and other financial services, electricity, telephone services and housing. We represent clients in disputes with the IRS, before legislative and regulatory bodies, and—in conjunction with lawyers from throughout the Firm—in handling a broad range of corporate transactions, financings, intellectual property and other issues. In addition, we have worked with many entities in the Farm Credit System and have advised numerous agriculture-related trade associations.
Partnerships & Joint Ventures
National and multinational companies are increasingly forming international joint ventures with related and third parties as an efficient means to enter the global marketplace. When these joint ventures take the form of a partnership for US federal income tax purposes, it is essential that the parties have a comprehensive understanding of the US partnership and the international tax opportunities and consequences of the structure. It is equally important to take account of the tax issues that arise in a contractual alliance that is not intended to constitute a tax partnership. Our industry-leading partnership and international taxation lawyers guide clients through the complex tax issues related to all stages of international joint ventures, including formation, operation and exit.
We advise clients on the use of partnerships, limited liability companies, S corporations, real estate investment trusts (REITs), and other pass-through entities to assist in sophisticated tax planning, including avoiding double taxation, obtaining the full benefit of tax losses or tax incentives, and minimizing the tax impact of asset acquisitions or dispositions. We help individuals, investor groups and owners with the formation, operation and unwind of domestic and international joint ventures, counsel private equity funds in fund formation and acquisition transactions, and represent operators and investors in structuring complex real estate transactions and other pass-through entities in order to achieve tax-efficient operations.