Speaking of IP HOLDING Companies…

Speaking of #IP #HOLDING Companies… One of the #strategy variations involves establishing an IP holding company subsidiary in a state with low state income tax rates on corporations. The #business transfers ownership of its trademarks for a low purchase price to the IP holding company which then licenses the #trademarks back to the business in exchange for annual royalty payments. The annual royalty payments are deducted as a business expense. Although this strategy can potentially result in significant savings on state taxes, there are certain tax and trademark law risks & considerations that businesses need to be aware of. And indeed I will tell more about those risks in my next post 😊

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