Cutting some clients loose is challenging yet vital. You can only hope for so long that a difficult client will improve before you have to make the decision that he or she simply isn’t worth it to your bottom line. Some clients also make it harder to service your good clients – if not risk your reputation and expose you to a malpractice claim. When you consider firing a client, you do have to trust your gut – but some objective measurements can point you to the right decision. Here are the signs of a bad (and potentially bad) client and formulas and tips to tell if you can do without their business.
State Tax Planning with the “80/20 Company” Exclusion
Ted Stotzer
Many multinational groups find that foreign-source dividends and other income earned by domestic affiliates are fully or partially subject to state income taxation, even where the federal system provides an exemption. This state-level “leakage” can be material – particularly in high-tax jurisdictions – and is often overlooked because the income appears sheltered at the federal level. For groups with predominantly foreign operations, a starting structure or a restructuring that causes one or more domestic affiliates to qualify as an “80/20 company” can substantially reduce or eliminate state taxation on that income.
