Entity Structuring

Optimize your business structure to maximize tax efficiency and reduce tax liability

We consider the different types of entity structuring and how each will impact your business.

• Discover whether a limited liability company (LLC) or corporation is best suited for your company. Investors generally prefer to invest in corporations, but there may be advantages to forming an LLC in some circumstances. 

• Review tax considerations to determine the corporate taxes are due at the entity and shareholder levels, while an LLC may choose to pass taxes through to its owners. 

• Conduct trademark and registration searches to be sure your desired company name is not being used by an organization offering similar products or services. 

• Help with the incorporation requirements and related documentation that will need to be filed with the state in which you incorporate (which may not necessarily be the location where your company is based or where it operates). 

• Work with your advisers to determine whether, and how, equity will be offered to employees. 

• Consider your growth plans and exit strategy, and discuss with your advisers whether those factors can affect your initial entity structure decisions.

It is also critical that you and your co-founders develop an operating agreement to outline issues such as equity arrangements, intellectual property, or IP, ownership, employment terms, and other items that, without an agreement, later may be subject to litigation. 

By considering these issues at the earliest stages of your company's lifecycle and developing an appropriate entity structure, you can help set the stage for your venture's future market growth and success and pave the way to an attractive exit strategy that helps you maximize your company's value. We work with our clients to understand their business operations, financial reporting processes, and risks, and develop a structuring plan that is tailored to their unique needs and circumstances.