The short answer is, it depends. Things to consider, when choosing the type or form of business entity:
- What is the business and how does it operate – is it an operating business or holding assets?
- What is the purpose of the business- is it your primary business, or is the business set up for a special purpose?
- What type of assets are held in the business?
- Does the business need to retain and build capital and what are its cash needs?
- Is it an existing business or a startup?
- What are the projections or expected income over the next 3 to 5 years?
Knowing the answer to these questions will be helpful in choosing the most advantageous entity type for your business. Please contact us and we can assist you in making this decision.