IPA Consulting Case Studies

IPA consulting provide business owners, executives and employees guidance through their toughest challenges with objective, comprehensive consulting. Having analyzed and served over 170,000 businesses in North America, our analysts and consultants have a wealth of knowledge and experience to assure our clients receive immediate understanding of their business challenges, how much those challenges are costing the clients in forfeited profits and timely, cost-effective bottom line results.

Summary Case Study: Develop A Succession Plan

Who: The owner of a $2,000,000 Electrical Wiring Services Company.

Challenge: IPA was engaged to provide tax planning services to an electrical wiring contractor which provides electrical wiring services to commercial construction projects. The company is 100% union, and the union offers a comprehensive benefit package and health insurance to all employees including our client. The company had gross receipt of $1.8 million.

Analysis: Our client is in his early 60’s and wants to plan for retirement. The company was owned 100% by his sister-in-law. This structure was put in place by our client several years ago so that he could maintain his union card, as well as bid as a woman-owned business. The company is currently worth approximately $2 million, and the client wanted to transfer the ownership of the company from his sister-in-law to himself.

Results: IPA developed a succession plan to accomplish the client’s wishes, which, in part, included a Trust and Gifting strategy incorporating certain beneficial interests and ownership transfers. Without IPA’s succession strategy, at the death of the client’s sister-in-law, the entire value of the corporation would have been included in her estate, resulting in an estate tax obligation of $400,000.

Additionally, IPA developed an income tax strategy for the client. The first year tax savings associated with the business was $12,301 (with a five-year total savings of $61,505), and the first-year tax savings to our client amounted to $19,073 (with a five-year total savings of $99,339). Estate planning recommendations created a potential estate tax savings of $488,505.

We deliver results that last. We deliver custom strategies and implementation that are action- oriented and provide the fundamental building blocks for a successful business.