Case Studies

Case Study: Assisting a New Equipment Leasing Business

Our client contacted us about starting a new equipment leasing business. He had a clear idea of what he wanted to accomplish but was unsure about the best way to legally structure his business and comply with all necessary tax regulations and protect his personal assets.

We at Assurance Financial advised John on which type of entity to form given his facts and goals. We recommended that he set up his business using two Texas limited liability companies (LLC)–one to hold the equipment and one to lease the equipment. This LLC stricture would provide him with personal liability protection, while also allowing him to take advantage of tax benefits.

To further ensure that the business was documenting its actions and help avoid liability, we prepared an intake form for the LLC employees to use to gather all the necessary information about equipment inspections and outline client use guidelines and responsibilities. This included details about the types of equipment he would be leasing, as well as any relevant industry experience and qualifications and inspection standards.

Next, we prepared a comprehensive equipment leasing agreement that clearly outlined the terms and conditions of the leases, including the duration of the lease, the payment schedule, refueling requirements, inspection, and any maintenance or repair responsibilities. This ensured that both John and his clients had a clear understanding of their obligations and rights.

Finally, we advised John on his Texas Sales Tax and Dealer’s Heavy Equipment Inventory Tax filing and payment requirements. This included helping him understand what types of equipment were subject to these taxes, as well as the appropriate tax rates and deadlines for payment.

Thanks to our comprehensive support, John was able to confidently launch his new equipment leasing business with peace of mind that he was in compliance with all necessary regulations. He continues to work with us on an ongoing basis to ensure that his business remains in good standing.

equipment leasing business formation

IT server business formation

Case Study: Assisting an IT Support Company with Restructuring and Tax Compliance

Our client, Jane Doe, came to us with a successful IT support company that had been operating for several years. Up until this point, the company had relied on a team of overseas technicians to service clients in the U.S., but Jane was interested in expanding her business to include local technicians who could perform on-site server setup and maintenance for clients in the Houston, Texas area and in Oakland, California/bay area.

To accommodate this change and address the addition of outside investors, we helped Jane restructure her business as a limited liability partnership (LLP). This allowed her to retain personal liability protection while also accommodating the needs of her new investors.

After successfully restructuring her business, we turned our attention to tax compliance. As an IT support company operating in multiple states, it was important for Jane to understand her obligations for collecting and remitting sales taxes. We advised her on the appropriate sales tax rates and deadlines for the states in which she operated, including Texas and California. In order to properly address California-specific sales tax issues, we helped Jane set up a second LLC specifically for her business in that state.

Thanks to our guidance, Jane was able to restructure her business and stay in compliance with all relevant tax regulations. She continues to work with us to ensure that her company remains in good standing and is able to grow and expand in the future.