Entity Selection & Restructuring

When it comes to business entity selection and restructuring at each stage of development in your business – from inception to growth and expansion – you need to rely on someone experienced in the financial and tax realms. It is extremely important. Otherwise, you could wind up unnecessarily spending money you do not have and missing out on much-needed tax savings if you don’t have the right business structure.

With our knowledge and expertise at Godbold & Romanov CPAs, we will advise you on the entity type – and later restructuring if needed – you should choose because we know how big of an impact this has on your taxes and other liabilities. We’ll sit down with you and thoroughly analyze the advantages and disadvantages of the different entities for your specific needs and provide the best recommendation that will give you the highest potential savings for future growth and meet (or even surpass) your goals.

The types of business entities include:

• Sole Proprietorship – This common option, which is fairly straightforward to establish, does not separate your company from your personal liabilities, so if your company is sued or goes into default with creditors, your home, vehicle and personal assets are at stake.
• Partnership – Two or more owners run their business based on an oral or written partnership agreement.
• C-Corporation – This entity is best if you plan to go public one day. You can issue shares to founders, employees, and investors, and there are unlimited owners, or shareholders allowed.
• S–Corporation – Similar to C, an S-Corporation is better for smaller corporations, with 100 shareholders max.
• Professional Corporation (PC) – A PC is formed by one or more licensed professionals to offer services related to their profession. The business is taxed as a single corporate entity and, in most cases, it takes on the burden of liability instead of the individual owners, or shareholders.
• Limited Liability Company or Partnership – An LLC exists as a separate entity for its owners, making sure that, legally, the members can’t be held responsible for debts and liabilities, where an LLP grants all partners limited liability protection, which could be less protection than an LLC in some cases.
• Nonprofit Organization – This is a group, also called non-stock corporations, organized for purposes other than generating profit and in which no part of the organization’s income is distributed to its members, directors, or officers.