The “choice of entity” decision is one of the most important decisions facing those who own and operate businesses. There are several forms to choose from, each of which generates different legal and tax consequences.
Further, there is no single form of entity that is appropriate for every type of business owner or entity.
Choosing the appropriate form of entity in which to operate a business is a complex decision.
It depends upon many factors, including the owners’ needs and desires and the particular characteristics and needs of the business in question.
Federal and state tax consequences of each type of entity also play an important role; especially in closely held entities where the parties’ combined tax liabilities should be analyzed as part of the decision-making process.
In order to chose the proper entity it is important to understand the characteristics of each type.
Prestige Australian Financial Services will meet with business owners to discuss their needs in this area and work with business owners to structure businesses in the most appropriate manner.