Technology startups present a recipe for difficulties in the world of state and local taxes (SALT): new services and business models, broad national or worldwide markets, and limited resources for compliance. As a successful start-up scales, SALT exposures become material, and particularly when heading towards the due diligence scrutiny associated with an exit.
DDH attorney Matt Boch provides practical ideas and insight for addressing SALT exposure in startups or other fast-growing, small and mid-sized private companies in a recently authored Shop Talk column in the Journal of Multistate Taxation and Incentives: “Tech Startups Should Resolve SALT Issues to Avoid Valuation Impacts in Due Diligence.” A reprint of the article is available here.