Service Areas

Corporate Reorganizations

There are many reasons companies may need to be reorganized:

• to amalgamate or combine companies in order to use the profits of one company against the losses of another;
• to create holding companies for creditor-proofing reasons;
• to divide the assets of a corporation among the shareholders (referred to as a butterfly reorganization);
• to incorporate a business, so that it may be carried on in corporate form;
• to transfer a business from a corporation to a partnership to deduct losses, take in a partner, or eliminate capital tax;
• to carry out an estate freeze in the most effective manner;
• to simplify a group of companies or eliminate inactive companies that are no longer useful; or
• to change the nature of a corporation's income (from investment income to active income or vice versa).

We can advise on whether a corporate reorganization is required, the benefits of such a reorganization, and the disadvantages, if any. We can develop a plan to implement the corporate reorganization, and work with legal counsel to execute the plan. We will also prepare the required tax-reporting forms, and produce a reporting letter summarizing the reorganization. For all of this work, we provide a precise cost estimate.