Space Money: The Fortune 500 View From TE Connectivity’s Martin Cullen

It was a “new space” company - Intuitive Machines - that embraced risk and landed on the moon, not a blue-chip aerospace company. In this episode Laura Winter speaks with Martin Cullen, T-E Connectivity’s Senior Manager for Business Development and Strategy about emerging space-platforms, space business, and how large publicly traded companies are navigating risk to get in on the space economy and deliver value and returns to shareholders.

Space Money: The Fortune 500 View From TE Connectivity’s Martin Cullen

Originally uploaded April 18th, reedited July 8th.
Jeffrey Mosher welcomes JV Anderton business attorney (now Shareholder) at Foster Swift and an Executive Committee Member for LEAP

Why succession planning is important?

I understand you have a program to tell us about?

What will the program cover?

Where is the program?

LANSING, MI – Ingham County businesses will have access to succession planning assistance through an innovative training series this spring and summer. Lansing Economic Area Partnership (LEAP), Ingham County, Foster Swift Collins & Smith, PC, Lansing Regional Chamber of Commerce, Tri-Star Trust and Transworld Business Advisors are delivering four Succession Planning 101 courses and two Succession Planning 201 courses geared to provide business owners a “Layman’s Guide to Succession Planning.”

“Succession planning is one of the most over-looked aspects of business lifecycle and yet, an effective succession strategy can make an enormous financial difference to the owner(s) and the community,” says J.V. Anderton, Foster Swift business attorney and LEAP Executive Committee Member. “Our goal with this program is to help business owners lay the foundation for starting their own succession plan.  This is a multi-disciplinary approach that will look at the financial, emotional, legal and logistical side of the process.”

Succession Planning 101 covers: identifying possible successors, operations and existing contracts, financial planning, self-evaluation and communications, the importance of a succession planning team, key legal considerations and recommended timeline for taking key steps.

Succession Planning 201 covers: maximizing the value of your trusted advisors, prepping your business for transition, business valuations, communications in the process, and includes a case study.

Succession Planning 101 (4 scheduling options)

April 25: 8:30-10:00 am. Foster Swift Hub: 313 S. Washington Square, Lansing MI
May 21: 3:30-5:00 pm. Okemos Conference Center: 2187 University Park Drive, Okemos MI
Click Here for Registration 
July 18: 8:30-10:00 am. LRCC Office: 500 E Michigan Avenue, Suite 200, Lansing MI
Click Here for Registration
August 27: 3:30-5:00 pm. Hidden Gem Event Center: 4230 Charlar Drive, Holt MI 48842
Click Here for Registration
Succession Planning 201 (2 scheduling options)

June 18: 8:30-10:00 am. LRCC Office: 500 E Michigan Avenue, Suite 200, Lansing MI
Click Here for Registration
September 18: 3:30-5:00 pm. LRCC Office: 500 E Michigan Avenue, Suite 200, Lansing MI
Click Here for Registration
There is no fee for attending, but pre-registration is required. To register go to: https://members.lansingchamber.org/ap/Events/Register/NWHjRMotxHaCm

Speakers include:
J.V. Anderton, Foster Swift Collins & Smith, PC
Amanda Dernovshek, Foster Swift Collins & Smith, PC
Taylor Gast, Foster Swift Collins & Smith, PC
Benjamin Brakken – Tri-Star Trust
Jessica Stark – Transworld Business Advisors.

Michigan Business Beat | JV Anderton - Foster Swift and LEAP Sharing Details on Succession Planning

Fueled by the failure of large medical groups, the disappointments of hospital employment, and the ratcheting down of care by private equity, physicians are increasingly seeking alternatives to their current practice arrangements.

Leaving Big Medicine? Look Before You Leap.

S Corporations (S Corps) offer unique tax advantages for small business owners, particularly when it comes to shareholder distributions. Understanding how these distributions work—and their tax implications—is essential for maintaining compliance and maximizing financial efficiency. With proper tax planning for S corporations, business owners can avoid costly mistakes, reduce tax liability, and ensure equitable treatment for shareholders.

What Are Shareholder Distributions?

In an S Corp, shareholders typically receive income in two ways: through salaries for work performed and through shareholder distributions, which are payments made from the company’s profits. While salaries are subject to payroll taxes such as Social Security and Medicare, distributions are not, making them a potentially tax-efficient way to compensate owners. However, the IRS requires that shareholder-employees receive “reasonable compensation” for their work before taking additional distributions.

Tax Implications of Distributions

The primary tax advantage of S Corp distributions is that they are not subject to self-employment or payroll taxes. This allows shareholders to potentially reduce their overall tax burden compared to sole proprietorships or partnerships. However, the IRS closely monitors S Corps to ensure that reasonable salaries are being paid. If a shareholder takes a large distribution but reports a minimal salary, it can trigger an audit and result in penalties or reclassification of the distributions as wages.

Distributions are generally taxed at the shareholder’s individual income tax rate. Because S Corps are pass-through entities, profits and losses are passed directly to shareholders and reported on their tax returns, regardless of whether the profits were distributed. This means that a shareholder may owe tax on undistributed earnings, making cash flow planning critical.

Basis and Distribution Limits

A shareholder’s ability to receive tax-free distributions depends on their basis in the S Corp. Basis is essentially the shareholder’s investment in the company, adjusted for income, losses, and previous distributions. Distributions over a shareholder’s basis are taxed as capital gains. Therefore, tracking basis accurately is crucial to avoid unanticipated tax liabilities.

State Tax Considerations

While S Corps are not taxed at the federal level, some states do impose taxes on S Corporation income or require additional filings. In certain jurisdictions, distributions may be subject to different rules, further complicating compliance. Consulting with tax professionals who understand the local landscape is important to avoid state-level penalties or overpayment.

Strategic Tax Planning for S Corporations

With thoughtful tax planning for S corporations in Fort Worth, TX, businesses can balance salaries and distributions to optimize tax outcomes. This involves evaluating the company’s profitability, determining reasonable compensation based on industry standards, and ensuring distributions do not exceed basis. Regular reviews and collaboration with a tax advisor can help ensure that distributions are handled correctly and tax obligations are met efficiently.



S Corp Shareholder Distributions and Tax Implications

From the Defense & Aerospace Report... This is The DownLink Podcast, hosted by Laura Winter.  From the intersection of space, business, and defense... Not just what's over the horizon, but what's happening above it.

The DownLink Podcast is 2023 and 2024 Defense Media Award-winner.

Hi! I am Linnea Jospeh, an expert in Tax planning services and I am working in this Industry for the last 5 years. I am not the owner of the content which has been published here. This content is only for knowledge purposes. This content belongs to the respective owners and I do not hold any right for this content.

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