Choice of Entity Considerations

Choice of Entity is the initial step in forming your business organization.  In addition to governance issues, which address whether the owners themselves, or elected or appointed representatives, manage the business, the arrangement for distribution of profits and special distributions, such as proceeds from capital transactions, may be addressed.  In planning how the governance and distribution issues will be addressed, the tax ramifications must be considered to achieve the goals of the owners.

Although addressing such issues at the early stages of starting a company may seem to be unnecessary, experience has shown us that changing later almost never occurs, even when facts warrant such change, and second, if the company does not prove successful, the ability to have maximized for tax purposes the financial loss may have been jeopardized, minimalized or lost.

Consultation with experienced business planners can help sort through the options available to achieve your objectives.   Seeking out experienced counsel such as Weiss & Associates, P.C. can help you achieve and secure your objectives.  After all, its more than just a choice of entity.