Choice of Entity: Tax and Non-Tax Considerations
1 hour 30 minutes
Gain a better understanding of the various considerations that go into making a choice of entity decision.
There are a number of entity forms that are available when a business or investment enterprise is started. Many lawyers, accountants, and business people fall back on a form that they have used in the past or is recommended to them by someone who is not familiar with of the variables associated with the different forms of business. Unfortunately, it is often the case that the recognition that a poor choice has been made only occurs after the error can’t be corrected or can only be corrected at a significant cost in time, money, and effort.
This topic will help anyone who is responsible for establishing a business or investing in it to understand the factors that they should be considering in making entity choices, including the benefits and detriments of the different forms of doing business or holding investments. Failure to consider these issues may result in significant additional costs, including taxes, exposure to lawsuits and administrative costs.
• You will be able to identify and discuss the typical forms of entities that are available when a business is organized.
• You will be able to explain the advantages and disadvantages from a tax, legal, and compliance perspective of each of the typically utilized forms of business entity.
• You will be able to describe to a client or a business associate what factors should be considered in adopting a particular form of business.
• You will be able to recognize the basic tax characteristics of business entities.