Manufacturing

By Joshua Sullivan, CPA & Tim Weber   If there's one thing that's always been true of manufacturing, it's that it marches hand-in-hand with evolving technology. As digital transformation marches forward, you want to have your manufacturing business stay on the leading edge of that technology by keeping on track with both trends and advancements that are becoming available for manufacturers. Prior to the COVID-19 pandemic, manufacturing companies saw that they had plenty of time to adopt new technology. However, given the radical changes that COVID-19 has had in how we work, live, and play, the speed of digital transformation has accelerated dramatically...

The Research & Development tax credit remains one of the most underutilized tax-savings opportunities for manufacturers and other companies. Businesses across the U.S. are receiving thousands to millions of dollars by taking advantage of the R&D tax credit...

As published in Jackson Magazine A few important factors should play a major role in the timing and outcome of a business transition. Perhaps one of the biggest obstacles in a successful business transition is coming to a realistic, optimal value. Often times, owners think they know how much their business is worth (this may be based on what they have heard from colleagues or what they have read in recent industry publications). However, determining the value depends on many factors, some of which include:  Your industry segment  The recent history of performance Inorganic growth strategies focused on product and service differentiation The quality of the underlying business, patented and proprietary methods Customer base transferability and access to new markets, customers and technology...

Download a copy of this article The federal research and experimentation tax credit, popularly known as the “R&D credit,” has been available since the 1980s to taxpayers who develop new products or manufacturing processes or improve upon existing products or manufacturing processes. But while the credit can be quite beneficial, historically it has been underutilized by small businesses — even those that devote a significant portion of their budgets to R&D. This may be changing, however, as legislation passed late last year inspires many small businesses to revisit the credit. The Protecting Americans from Tax Hikes (PATH) Act of 2015 made the R&D credit permanent, and also made it easier for small businesses to benefit from the credit...

The Protecting Americans from Tax Hikes (PATH) Act of 2015 accomplished more than just extending certain tax breaks. It also made some taxpayer-friendly provisions permanent — including the shortened recognition period for companies that convert from C corporation to S corporation status. This change is causing many manufacturers and distributors to re-evaluate their corporate status. After weighing the pros and cons, many companies are electing Subchapter S status to gain enhanced flexibility in business decisions and to lower taxes...

Owners of manufacturing and distribution companies are often so focused on the here and now that planning for future catastrophes may fall through the cracks, especially if the owners are young and healthy. But operating without a valid buy-sell agreement is like driving without car insurance. Failure to execute an agreement or to update an old buy-sell for ownership changes can cause financial distress and even tear a company apart if tragedy strikes. Avoiding family business transfer pitfalls Many manufacturing and distribution companies are family owned...

As featured in the July 2016 issue of Jackson Magazine.  According to the U.S. Department of Homeland Security, cyber attacks on manufacturers nearly doubled in 2015, with cyber incidents increasing 20 percent...

On December 18, 2015, Congress enacted the Protecting Americans from Tax Hikes (PATH) Act of 2015, which extended and made permanent the Research and Experimentation (R&E) or Research and Development (R&D) Tax Credit. The credit had expired on December 31, 2014. In addition to permanently extending the credit retroactively to January 1, 2015, Congress also added several taxpayer-friendly provisions to the credit. Background One of the most underutilized and misunderstood tax savings opportunities for businesses is the R&D credit...

Manufacturers and distributors spend significant resources choosing the right information technology (IT) equipment to invest in — and securing devices throughout their useful lives with firewalls, passwords, encryption, antivirus software and dedicated staff. But security sometimes falls by the wayside when assets are retired. Ongoing attention to security is a priority, because IT equipment typically houses a company’s most valuable intellectual property. Security breaches Just because data appears to have been deleted from a device’s hard drive doesn’t mean it’s gone...

The latest mega-deal in the manufacturing sector — the merger of pharmaceuticals giant Pfizer with Ireland-based Allergan — is sending shock waves through Washington, DC. Although numerous factors are at play, the merger is essentially a complex variation of the sort of tax inversion that's causing concern in Washington. As if on cue, the Treasury Department recently issued new rules governing inversions in Notice 2015-79, following up on guidance released in 2014. Other proposals relating to tax inversions are gaining traction in our nation's capital...