One of the most important decisions you will likely make when starting a business is the type of legal structure you select for your company. It will have a profound effect on the taxes you pay, the liability you expose yourself to, the cost efficiency of the benefits you provide yourself, your family, and your employees. Your choice also has an impact on the degree of difficulty and complexity you will face in operating your business and eventually transferring it or selling it to third parties, key employees or family members.

The most common forms of businesses are:

• Sole Proprietorship
• Partnership (both general and limited) 
• Regular (“C”) Corporation
• S – Corporation
• Limited Liability Company (LLC)
• Limited Liability Partnership (LLP)

KEEP YOUR STRUCTURE CURRENT WITH CHANGING CIRCUMSTANCES AND NEEDS

Even after you settle on a business structure, it’s important to consider periodic changes in the tax laws (i.e., the recently passed Tax Cuts and Jobs Act). These changes can dramatically affect the favorability of one business structure over another (i.e., IRS: Section 199A). It is important to reassess your form of business structure from time to time to make sure you are using the business structure that best fits your situation.