Overview

One of the first steps in organizing any new business is to determine which type of business entity should be formed. While this analysis may seem simple and straight forward, there are often a number of complex issues that must be considered. To determine which entity best suits our client’s situation, we evaluate the relationship among the owners, the owners’ obligations at formation and in the future, how the business will raise working capital when it is formed and as it grows, what type of management organization will be effective for the business, and which income tax treatment will be most efficient, as part of the analysis.

The above links contain a brief explanation of the most common entities, how they are formed, the tax treatment for each entity, and when each entity is commonly used. It is important to note, however, that there is no “one size fits all” option, and the specific facts of a client’s situation must be considered in determining which business entity to use. Please contact us if you would like to discuss your specific situation with us, in order to determine which type of entity is the best fit for you.