Choice of Entity Selection
Starting a new company is an exciting time for an entrepreneur. There are ideas abound, financing opportunities, production processes to develop, employee hiring decisions and a number of other issues to manage. One of the most important decisions an entrepreneur will make from a tax perspective is choice of entity selection. The IRS offers a number of corporate structures designed to provide business owner/owners with the most tax-efficient vehicle for managing the company, including sole proprietorship, S-Corporation, C-Corporation, Limited Liability Company (LLC) and Limited Liability Partnership (LLP). All of these offer both beneficial features and comparative disadvantages that need to carefully considered before submitting the required filings to the IRS.
Hanson & Co. has significant experience working with entrepreneurs in the choice of entity selection process. Our team understands the various rules and filing requirements that must be met depending on the entity structure selected as well as the tax and legal consequences of each. We work closely with our clients to understand key facts about the new business, including the number of owners, level of asset protection, investment structure and compensation, and establish how each factor should be weighted in making the entity decision. This information and the client’s individual situation are essential to identifying the correct entity type for the new business.
Making sure you have the right entity structure is crucial to the vitality of your new company. For this reason, it’s important to work with a qualified advisor to guide you through the process. If you would like assistance with choice of entity selection, outsourced accounting or other services, Hanson & Co. wants to help. For additional information, please call us at (303) 388-1010, or click here to contact us. We look forward to assisting you soon.