Starting a new business is often an exciting time for both the seasoned business veteran and new entrepreneur alike. There are many decisions that need to be made including talent acquisition, process development, marketing approach, customer acquisition and even financing. One area that is often last on the list is taxes and tax planning. An essential decision that needs to be made almost immediately is the type of entity structure the company will operate under. The structure selected will determine the rules for how revenue is paid to owners and taxed. Making an educated and informed choice is essential to realizing the greatest tax benefit.
Entity Selection Options
The IRS offers a number of entity structures depending on the purpose and needs of both the business and its owners. These include S-Corporation, C-Corporation, Limited Liability Company (LLC), Limited Liability Partnership (LLP), sole proprietor and more. Multiple factors differentiate entity selection choices, including liability, ease of formation and operation, taxation, suitability to the business purpose and ease of expansion, sale, termination or dissolution.
The tax team at JLK Rosenberger can help navigate these options from company inception through growth and development. Our professionals explain the benefits and drawbacks of each entity type and the tax impact on both ownership and the business itself. In addition, we also work with companies on entity restructuring and related analysis.
Our Entity Selection Services Include:
- Business needs analyses to uncover facts about economic objectives, number of owners, asset protection, desired investment structure, future goals and more
- Consultation on specific tax and non-tax matters related to each entity option
- Tax liability planning and projections
- Separate entity formations
The first steps are often the most important especially when it comes to starting a company. If you have questions about the right entity structure for your company, or would like to discuss restructuring, JLK Rosenberger can help. For additional information, or reach out to the highlighted professional. We look forward to speaking with you soon.