IP Holding Companies

An intellectual property owner can minimize taxes by selecting the best state or overseas domicile and inter-company licensing mechanisms.  The general concept is to move a company’s portfolio of intellectual property (trademarks, copyrights, patents, even unpatented technology) to a venue with low or no state income taxes on passive income.  Income that otherwise would be taxable by the state or IRS in which a company is conducting its business operations can be converted into nontaxable passive income in another jurisdiction, with a corresponding tax deduction in its home state.

Clients:  Aldo, Wackenhut, Lockheed/Calcomp, Baker & Hostetler

Related Article:  "Using a Delaware Holding Company to Lower the Software Company`s State Income Taxes"