Piercy Bowler Taylor & Kern | Entity and Tax Structuring

Selecting an Entity Type and Transaction Structuring

One of the first and most important decisions that you will make when starting a business or making another investment is the selection of the type of entities that will own the assets, incur the debt, and/or conduct the operations. Just like your fingerprints, your needs are specific to you alone and, as a result, the choice can be difficult and the cost associated with a bad decision can be substantial.

Your future plans are critical to the selection process. Will you keep capital in the business or distribute earnings? Will you transfer ownership interests often? Is protecting the entity’s assets and your personal wealth from potential claims important? Do you want to make sure there is only one layer of taxation? These are just a few of the factors to consider when selecting an entity type.

Partnerships, LLCs, S-Corporations, and C-Corporations all have unique benefits and distinct disadvantages. The tax professionals at PBTK will work with you to explain the differences and help you decide what organization structure, including entity types, best suit your needs.

The structuring of on-going, individually significant transactions is also important, including when it comes time to sell your business or transfer interests. We will work with you to protect your wealth and minimize the tax effects of these transactions. Frequently, we can design a structure that benefits both the buyer and the seller and helps expedite the process.

Please contact one of our professionals at 702-384-1120.