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Advisory and Assurance

Entity Selection

Your business structure can affect more than your tax return. Entity selection can influence taxation, owner compensation, payroll, administrative requirements, and future business decisions.

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Choosing the Appropriate Structure

We help business owners evaluate the tax and financial implications of structures such as:

  • Sole proprietorships
  • Single-member LLCs
  • Multi-member LLCs
  • Partnerships
  • S corporations
  • C corporations

The appropriate structure depends on the specific circumstances of the business and its owners.

Factors We Consider

Our analysis may include:

  • Current and projected profitability
  • Number and type of owners
  • Owner compensation
  • Self-employment and payroll taxes
  • State taxation
  • Administrative requirements
  • Distribution plans
  • Benefits
  • Future ownership changes
  • Growth plans
  • Tax objectives

S Corporation Analysis

An S corporation election should not be based solely on potential payroll-tax savings.

We also consider reasonable compensation requirements, payroll administration, state taxes, shareholder basis, distributions, compliance costs, and the expected profitability of the business.

Frequently Asked Questions

Is an LLC the same as an S corporation?
No. An LLC is generally a state-law entity, while S corporation status is a federal tax election.
When should I consider changing entity structure?
A review may be appropriate when profitability, ownership, compensation, business activities, or long-term plans change significantly.
Does an S corporation always save taxes?
No. The result depends on the specific facts and the additional costs and requirements associated with the election.
Can you work with my attorney?
Yes. Tax and legal considerations frequently overlap during entity structuring, and coordination can be valuable.

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Choose a Structure That Fits the Business

Evaluate the tax and financial implications before making the decision.

Schedule a Consultation