Strategic Entity Formation
There is no one-size-fits-all as it pertains to a business entity. All the available tax vehicles have their strengths while also having weaknesses. As is a common theme in our preparation and our planning services, entity formation should look at management’s short and long-term goals to ensure the best outcome in both scenarios.
We advise our clients in this area of both the strengths and the weaknesses of all tax vehicles. Our strategic entity formation advisement teams work tirelessly to educate our clients on the structure that most closely aligns all their goals. Items that we consider during this process are asset protection, exposure to risk and the benefits, if any, of passing income or losses through to the ultimate shareholder or member.
There are also certain entities that can be formed in and around special circumstances. For example, these entities can be used to manage insurance risk while also maximizing after-tax dollars as it relates to premium disbursements. Furthermore, our client’s exposure to international customers might also dictate a special purpose entity to handle the complexities of this line of business while also minimizing their exposure to taxes.
In all of our strategic tax planning we are mindful of the complexities of the tax law.