Switching The Form Of Your Business
- The comparative ease and expense of forming each kind of business
- To what degree each might shield you from personal liability
- The tax benefits or drawbacks of each business set-up
- How many owners you had or planned to have,Whether passive investors had ownership stakes
- How much protection from creditors each entity would afford you.
If you formed your business as an S corporation and now want equity financing from foreign firms or corporations, you’ll have to become a C corporation or LLC in order to admit these new owners.
If you’re one of several owners of a professional firm that decides to share profits according to each owner’s annual contribution to the bottom line, you won’t be able to use a corporate form. But partnership rules could accommodate this arrangement.
If your growing software company, formed as an LLC, decides to go public, you’ll have to become a C corporation.
© 2020 Advisor Products Inc. All Rights Reserved.
- Getting Help To Care For Mom And Dad
- Plan Ahead To Sell Your Business
- Don't Be Deceived By New Tax Law's Name
- China Poses A Hidden Risk For Many 401(k)s
- Growth Of The Consumer Class And The Investment Outlook
- Exceptions To The New Rule On Inherited IRAs
- Repeated Tax Reforms Raise The Risk Of Doing Nothing
- Boomers Working Past Age 65 Are A Surprise Boost
- Study: Wall Street's Tactical Methodology Isn't Working
- Three Major Investing & Tax Planning Trends For 2020
- SECURE Act Is Law: Last Call For 2019 Tax Savings
- Performance Anxiety: A Leading Cause Of Investor Dysfunction After Age 55
- How Worldwide Demographics Affect Your Portfolio
- Financial Lifeboat Drill For Mustering In Emergencies
- Hiddenomics™ Challenge: Find The Leading Economic Indicators