Brian McMahon has a strong interest in the music and entertainment industries and after providing some consulting work with Prescient Audio, Brian became part of the ownership group. He became the CFO because he had a vision of how Prescient Audio would dramatically change the audio industry. The company was originally set up by another accounting firm. Because Brian previously had a professional relationship with SVA, he introduced SVA to the ownership of this new company.
SVA’s tax experts reviewed how the company was set up and quickly uncovered some issues in how the investor funding was established. One of the investors had planned to use funds from their 401(K) in the new venture, which would have caused tax issues in the future. After presenting another option to the owners, an additional company was established to resolve the initial investors’ capitalization issues. The new entity structure also saved future legal and administrative costs.
“SVA was critical to our LLC being created properly and their business knowledge combined with current tax acumen was very helpful to us in creating a more effective and flexible organization structure. We are now able to maximize investor opportunities, minimize taxes, and save future legal and administrative costs”, commented Brian. “We were lucky to have SVA assist us in properly organizing our business. We received timely advice with sound solutions to get us off to a good start.”