Tax Services:

Choice of Entity

One of the most important decisions for any business owner is choosing the most appropriate legal form of doing business. Options can include proprietorships, partnerships, C corporations, S corporations, limited liability companies, and limited liability partnerships. Each type of entity has distinct advantages and disadvantages. A careful analysis of the owner’s specific tax and non-tax considerations and objectives must be performed. Sisterson has the experience and the know-how to assist an owner in identifying objectives and weighing all the factors to reach the best conclusion.

Our tax department has both the depth and breadth of experience in tax compliance and planning for all forms of business entities. Our choice of entity analysis, in collaboration with legal counsel, would examine the following factors:

• Taxability of income
• Number and type of owners
• Deductibility of losses
• Transferability of ownership interests
• Capitalization of the business
• Administrative costs
• Fringe benefits for employee-owners
• Qualified retirement plans for employee-owners
• Contributions and distribution of property
• Distributions to owners
• Exit strategy