Foster, Swift, Collins & Smith, P.C.

The needs and circumstances of every business differ. But, one thing is certain – careful tax planning will reduce the possibility of tax disputes and save tax dollars. Foster Swift has created a team of dedicated attorneys, known as the State and Local Tax Practice Group, to help our clients resolve their Michigan tax issues, including the following:

• Choice of Entity. Individuals starting or restructuring a business are faced with many important decisions. One that can have wide-ranging tax consequences under both federal and Michigan law, is selecting the proper entity. We routinely counsel clients on the most advantageous entity type for their business.

• Corporate Income Tax. Michigan has eliminated both the Single Business Tax (SBT) and the Michigan Business Tax (MBT), and in place of those taxes has instituted the Michigan Corporate Income Tax (CIT). Businesses that understand the CIT can easily structure their organization and operations to substantially reduce their Michigan tax liability. [Link to our article discussing the CIT]. Foster Swift's tax group regularly engages in tax planning with in-state, out-of-state, and multi-state clients to help them capture tax-savings relating to the CIT. We also continue to advise clients in SBT and MBT issues for prior years.

• Sales and Use Taxes. Michigan businesses frequently encounter sales and use tax issues when they purchase new equipment for use in their business, sell or buy products on the Internet, or acquire the assets of a competitor. Foster Swift's tax group works with clients to plan and craft strategies to reduce sales and use tax liability and minimize the likelihood of disputes. Foster Swift also represents individuals who are faced with “corporate officer liability” to help them reduce or avoid the taxes that they owe. If a client does encounter a sales or use tax dispute, then we have the expertise to efficiently and effectively resolve it.

• Business Transactions. Although often overlooked, many business transactions have Michigan tax implications. Foster Swift’s tax attorneys have advised all types of clients regarding the Michigan tax consequences of many transactions, including mergers, acquisitions, reorganizations, liquidations, intracompany transactions, joint ventures and other contractual relationships, employee benefit and executive compensation arrangements, settlements, estate planning and countless others.

• Withholding and Payroll. Any business with employees must comply with the State of Michigan's payroll requirements, including the requirement to withhold Michigan income and unemployment taxes. Failure to comply with these requirements is a common and costly mistake made by many businesses. Officers and certain other persons may be held personally liable for unpaid Michigan withholding and payroll taxes, even if the business has been dissolved or filed bankruptcy. Foster Swift's tax attorneys frequently guide businesses through the intricacies of Michigan's withholding and payroll requirements and represent their interests during audits and appeals.