Jen: This is the PKF Texas Entrepreneur’s Playbook. I’m Jen Lemanski, and I’m back again with Frank Landreneau, one of our international tax directors. Frank, welcome back to the Playbook.

Frank: Thanks, Jen. Great to be back.

Jen: So, last time we talked about the toll tax. Can you give us a little bit of an overview; are there some specifics in the regulations that middle market entrepreneurs need to know about?

Frank: For the most part it really goes over all the things that we knew earlier this year through all the notices that were issued by the IRS through the spring time and early summer. But one of the things that it really kind of confirmed that we weren’t quite sure about is that upon the repatriation of the toll tax amount…

So, first of all, the entrepreneurs is taxed on this repatriation amount, but it’s not necessarily distributed; it’s deemed distributed. And once the amounts are distributed, then passive owners of float-through entities would be taxed on the net investment income tax at 3.8% for the full inclusion amount, and it’s not subject to installments like the toll tax is.

So, that was something that was clarified and we weren’t quite sure about that may come up to be a surprise to some entrepreneurs.

Jen: Now, is this toll tax going to affect different industries, or is it kind of across the board if you’ve got a pass-through entity?

Frank: I think it’s affecting industries all across the board. I think the real issues become, “Where do you want your cash at the end of the day,” – and we’ll talk a little bit about that more in subsequent segments – but also, “Are you doing business in high tax jurisdictions?”

There are certain things that are available under the law such as a Section 962 election, which allows an individual to be taxed like a corporation, which can be favorable, however there’s a downside that upon repatriation you’re taxed a second time to the extent you were taxed the first time. It gets rather convoluted and complicated, so we would need to have someone sit in and have a consultation with us to learn more.

Jen: Definitely. Well, we’ll get you back to talk a little bit more about the toll tax and some other things for international entrepreneurs.

Frank: Thank you very much. Appreciate it.

Jen: Perfect, thanks. To learn more about other international topics, visit This has been another Thought Leader production brought to you by PKF Texas The Entrepreneur’s Playbook. Tune in next week for another chapter.

Karen: This is PKF Texas Entrepreneur’s Playbook, I’m Karen Love, Host and co-founder and today I’m with Andy Ray, a Principle in our Entrepreneur Advisory Services team. Welcome back to the Playbook Andy.

Andy: Thank you.

Karen: I’m so glad that you’re here because I hear a lot – you talk about impact but not only impact, radical impact.

Andy: That’s right.

Karen: What is that?

Andy: Radical impact is creating sustainable results that matter to a business and that is primarily accomplished in mid-market companies through middle managers. It’s a great time to be a middle manager in mid-markets because the field is wide open for impact creation, especially radical impact creation.

Karen: Wow, now I’m impressed. What I want to know is how do you help middle managers create that radical impact?

Andy: Well the first thing you have to do is you have to help them create time because they’re so busy working in their business that they don’t have a lot of time to work on their business.

Karen: I can use that time.

Andy: So you’ve got to be really cognizant of the time that you’re working on radical impact. And the main two things – the main two skills that they need to learn and that we help them develop is developing good strategic tools so that you decide what to work on; that’s where all the impact’s going to come from in that decision right there. And then the second piece is execution skills; how you actually deliver that result that matters and sustain it because without sustainability it’s not radical impact.

Karen: Well that’s impressive and I’m ready to execute right now. So thank you for being with us and explaining it and I look forward to having you back.

Andy: Thank you.

Karen: This has been another thought leader production brought to you by PKF Texas Entrepreneur’s Playbook so tune in next week for another chapter.


Karen: This is PKF Texas, Entrepreneurs Playbook, and I’m Karen Love host and co-founder. Today I’m here with Andy Ray, a Principal in our Entrepreneurial Advisory Services team. Welcome to the Playbook, Andy.

Andy: Thank you for having me.

Karen: Well listen, today what I’d love to talk to you about is why do you feel like the mid-market is a great way to effect change?

Andy: Mid-market is a great way to effect change just in the fact that the mid-market has the size to change. They can change very quickly, and just the fact that they’re going through so many cycles of growth from their early days into their scalability phases up through all the way to getting financial help, and getting into that investor ready position. It’s all about change in the mid-market. It’s also a great way to develop people, which is also a change element in and of itself.

Karen: Well those are very interesting points about the mid-market. So tell me what are some of the other challenges you had dealing with mid-market companies.

Andy: The big challenge you have with mid-market companies is that as they do grow they can lose some of that nimbleness, some of that entrepreneurial spirit that they had going through that start-up phase.

Karen: Right, because they just get too big to do that.

Andy: They get too big. Secondly, the have trouble sustaining change efforts. They have trouble really cementing the things that make them great as they get through their growth cycles, and then the third problem they have, or the third challenge they have is really retaining, and training talent that they get in the business. It gets to be a very transitory market sized company.

Karen: So without the right consulting that you could provide, I could see why that would be a challenge. Would you come back and talk to us more about that?

Andy: Absolutely, I’d love to.

Karen: Wonderful, well thank you. I appreciate that. Well this has been another thought leader production brought to you by PKF Texas Entrepreneur’s Playbook. So please tune in for another chapter.