Tax planning

I’ve recently started working at a small family owned manufacturing company.

This company’s even smaller subsidiary has about an 60-80% chance of winning a massive generationally life changing contract.

As I’m the finance guy (scary right) here’s the question:

Is it remotely feasible to spin up a Investment Management entity relatively quickly sell the company to it (same owners), throw in a hurdle rate and effectively allow the family to take advantage of the Carried Interest loophole assuming the sub is a S-Corp.

And if this is insane is sending all the profits into a Trust an option? I'm trying to think of other ways they could minimize taxes, buy a trucking fleet etc., any ideas?

I could go on but you get the gist.

THANKS!

1 Comments
 

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