Entity Formation

The type of entity you choose to operate your business as can have major implications for your goals and long-term success.

Business owners face numerous considerations related to tax exposure, conflicting owner interests, plans to sell or exit the business, and more.

Strategically assess your entity options and navigate the complex decision process with guidance from our professionals—so you can stay focused on the things that matter most to your business.

Assess your entity options

Entity formation options for businesses include:

• C corporations. Owners taxed separately from the entity with the organization subject to corporate income taxes.
• Passthrough entities such as S corporations, partnerships, and more. Income from the entity is passed directly to owners, shareholders, or investors—who are then taxed.

Important factors to consider depending on the goals and needs of your business include:

• Cost and complexity of forming and maintaining the status of requirements under the structure
• Amount of tax liability
• Flexibility to allow owners to come and go
• Appropriate structure to have in place at an exit or ownership transfer, whether selling, passing on to the next generation, or other strategy

Examples of specific business types and industries that can benefit from in-depth scrutiny of their entity type include:

• Family-owned businesses
• Private equity-held businesses
• Technology