Few private businesses are structured effectively.
There are something like 33 different entities from which you can operate a business. The most commonly used are personal individual schedule C business, partnership, LLC or corporation. Each of these are taxed differently and can take deductions the others can’t. We use all of these except the schedule C business frequently. Plus we use the other 28 when circumstances dictate.
Private businesses are poorly structured. That makes them vulnerable to unnecessary tax, dangerous lawsuits & getting caught by competitive forces without the ability to maneuver. All of which can be disastrous. As businesses get larger, the more sophisticated they become and the more they will turn their attention to structures. At one time Caterpillar had 350 separate subsidiary companies in the Luxembourg alone. But private businesses generally go through their entire existence as a single structure.
We are expert at business structures. We will restructure your business to its best structure to achieve goals in tax, asset protection & maneuverability.
- A great structure achieves myriad valuable goals easily and effortlessly.
- A bad structure constantly interferes with business goals & exposes your vital assets to lawsuits & litigation.
- A bad structure is a trap because it’s inflexible, cumbersome & poorly conceived. Plus it adds to tour tax burden & puts all assets at risk needlessly.
- A bad structure is a lead weight around your shoulders.
- A bad structure makes it more difficult to survive & thrive in a competitive environment
bizztrategy @ Ellis CPA 