Starting a new enterprise is an exciting time for those involved. The opportunity to create, invest and build focuses this energy and excitement. Whether it’s an entrepreneur starting a new company, investors structuring an acquisition or the creation of a subsidiary, the most important decision from a tax planning perspective is choice of entity. There are a number of possible entity structures, including S-Corporation, C-Corporation, Limited Liability Company (LLC), Limited Liability Partnership (LLP) and others. All of these structures offer comparative advantages depending on the purpose of the entity and its short- and long-term goals.
Uncovering the answer to this puzzle requires a clear understanding of the new company’s economic objectives, tax rules governing each entity choice and the tax consequences on a corporate and individual level for all involved. Our team works closely with clients to understand key facts about the new entity, including the number of owners, level of asset protection and desired investment structure and establish how each factor should be weighed in the process. Armed with this information, we are able to provide the necessary guidance to arrive at the best entity option for each unique situation.