Entity Structuring & Formation
Various tax and nontax considerations should be considered when selecting the appropriate structure for a business venture. This is especially the case with international activities, but is also important for domestic tax planning. In terms of which entity to operate from, the answer depends on the one that will offer owners/investors liability protection coupled with the greatest after-tax investment returns. Factors that play a vital role in accomplishing this goal consist of (i) taxes, (ii) employee benefits; (iii) investor liability limitation from the debts and obligations of the entity, (iv) ability of the entity to raise capital, and (v) the exit strategy.