However, as we all have experienced, time changes things. Sole Proprietors bring on partners, long-time partnerships dissolve, and we may have a need to Recapitalize in order to provide more non-voting shares of stock. There are also new options that come available, like the Texas Series LLC.
What’s important is not necessarily how you set up your company initially, but how your company is structured now. With changes in tax laws and estate planning, as well as changes within your own business, your current entity choice may not be the most tax efficient for your situation.
A little bit of time spent now, evaluating and possibly changing your company’s legal structure, could save you a bundle in the long run.
The PDF links below provide a brief overview of each type of business structure, as well as the advantages and disadvantages of each.
If you would like an evaluation of which entity choice is the most tax efficient or best suited for your company, we’re here to help. Please contact us at any time.