Business Formation/Succession Planning
In forming a business, there are important factors that one must consider in choosing an entity type for the business. One of the most important factors is tax. Whether the entity should be a corporation that is itself taxable, or whether it should be a conduit entity, such as a partnership, S-Corporation, or an LLC, whose income or loss flows down to and is reported on the individual tax returns of its owner(s). The choice of the form of the entity will determine many things about what the business and its owner(s) and employees can or cannot do, who can be held liable, how to handle its profits and losses, and how the business will be taxed. If the business entity will do business in other states or jurisdictions, it may have to deal with the legal, State, and local tax requirements of those states or jurisdictions for allowing out-of-state businesses to do business in their territories. While it’s possible to change the form of your business entity as the business’ needs change over time, the tax consequences of such a change may not be what you want. Thus, it’s in your best interest to select the correct entity right from the start.
You may wonder why you need a business succession plan. Like most business owners, you may want to be able to secure your family’s financial future, or answer the question of what would happen to your business, when you choose to take a less active role or completely retire from it. A well thought out business succession plan tailored to your financial goals should help you meet those goals in an orderly manner.
We have the knowledge and experience to consult with you and assist you in tailoring the above important decisions, as well as help you implement them, to meet your business’ and your future needs. Don’t hesitate to contact or call us at (770) 962-7201. Your initial consultation is free.