What type of business entity should I establish?

The main options are a company, which can be either taxed as a separate entity (“Company A”) or on a “pass-through” basis (“Company B”); a limited liability firm; a limited partnership; or a general partnership. The decision depends on various factors, including the nature of business activities to be carried out; the geographical location of the business operations; the number of investors involved; etc. Tax implications also play a crucial role in determining the most suitable business structure.

The primary alternatives are a corporate structure, which can be either taxed as a separate entity (a “C-Corp”) or on a “pass-through” basis (an “S-Corp”); a limited liability company; a limited partnership; or a general partnership. The selection is based on many factors which take into account the type of business activities that will be conducted; where the business will operate geographically; the number of investors which the business will have; etc. Tax considerations also play an important role in determining which business structure is most appropriate.