Choosing the Right Entity Type
We believe that the basis of a solid business venture is laid by selecting the right entity and planning for your new business. Our firm can consult with you on choosing the right entity type – whether it’s a Sole Proprietorship, C-Corporation, S-Corporation, General Partnership, Limited Partnership or Limited Liability Company. We will work with you considering both corporate and individual tax consequences regarding your choice of entity type as well as asset protection. Our goal is to help you select the right structure and then realize the tax savings and operational benefits each year going forward. The choice you make will involve weighing the advantages and the disadvantages of various factors that apply to your particular business.
When Choosing a Business Entity Type, You Should Consider:
(1) the degree to which your personal assets are at risk from liabilities arising from your business
(2) the best way to pursue tax advantages and avoid multiple layers of taxation
(3) the ability to attract potential investors
(4) the ability to offer ownership interests to key employees
(5) the costs of operating and maintaining the business entity
The availability of a particular entity type initially depends on the number of owners. A single owner may operate as a sole proprietor, a corporation, or a limited liability company. If there are two or more owners of the business, by definition it cannot be a sole proprietorship, but it is open to the other previously listed options
You should also keep in mind that there will be changes in the nature of your business as it grows and evolves over time. Your choice of entity type and business structure should be reviewed every three to five years, as it may make it advantageous to change your entity type and/or its tax classification.
We will also work with you to cultivate your business plan. We can be as active or passive as you desire and our approach can range from preparing a complete business plan to simply coaching you and assisting you in writing and developing the business plan. We can also assist you throughout the start-up phase of your business as a trusted adviser and consultant. Our goal is to simplify the start-up and development phases so you can focus more of your attention on growing your business.