In order to facilitate capital infusion from investors in the US and internationally, a start-up life sciences company planned to set up a joint venture. The joint venture needed to be structured in a way that created tax efficiencies for the company and its US and international investors.
Baker Tilly solution
Baker Tilly’s international tax specialists developed multiple scenarios related to “rest of the world” intellectual property to help the company and its investors achieve their objectives. The scenarios created a dual holding company structure that allowed for two entry points, one through a US direct investment and another through an international direct investment. These scenarios were collaboratively reviewed with the company and, through ongoing discussions of the alternatives related to each scenario, modified to develop an optimal structure for the company.
The tax structure recommended by Baker Tilly enabled an efficient tax deferral option for the company and its investors. The structure also allowed cash to be directed to jurisdictions that provided maximum flexibility for when cash would be returned to investors. Through ongoing discussions of the alternatives for the joint venture, the Baker Tilly team was perceived by the client as a Valued Business Advisor.
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The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.