Business Structuring

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Whether you are in the early stages of a start-up business, an established business looking to expand, or you just want to accelerate your growth rate, the business structure is one of the key impacts on your taxation liabilities, asset protection and reporting obligations.  A sound business structure is usually made up of several entities including companies, partnerships, trusts, and individuals.  We are here to help you reach your full business potential by advising on the most appropriate business structure for your business.

 

 

Forms of Business Structure:

A sole proprietorship is the simplest business structure and involves one individual who is responsible for the day-to-day operations of the business. Also, from a tax perspective, the incomes and expenses of the business are included in the tax return of the owner.

A partnership is a form of business structure that comprises two or more owners. It is the simplest form of business structure for a business with two or more owners. A partnership shares a lot of similarities with a sole proprietorship. For example, the business does not exist as a separate legal entity from its owners, and therefore, the owners and the entity are treated as one person.

A corporation is a type of business structure that gives the entity a separate legal entity from its owners. It is complex and expensive to set up, and it requires the owners to comply with more tax requirements and regulations. Most corporations hire attorneys to oversee the registration process and to ensure that the entity complies with the state laws where it is registered.

A limited liability company (LLC) is a hybrid business structure that combines the best of both worlds, i.e., it possesses the characteristics of both partnerships and corporations. It provides personal liability protection to business owners while reducing tax and business requirements. The profits and losses of the business are passed through to the owners, and each business owner is required to include a share of the profits/losses in their personal tax returns.