Whether you are just starting a business, or are already well established, planning your entity and tax structure plays a key role in the success of your venture. The choice of entity should be made based on certain specific facts and circumstances surrounding your type of business. The experts at MASH have the knowledge and expertise that can help you understand the complex range of business entities available and determine which business structure is right for you.
Whether it’s a tune up, major overhaul, or development from the ground up, we stand ready to assist you with the services that fit your individual needs. We will work with you and your advisors to help you meet your goals, a service that we offer from a deep wellspring of experience, skill, and innovation.
Sole Proprietor - is a business entity that is owned by one individual and in which there is no legal distinction between the owner and the business. From a tax perspective, a sole proprietorship is the business structure that is most scrutinized by the IRS. We can help protect sole proprietors from having unnecessarily excessive tax liabilities.
General Partnership - is a business entity that is formed by two or more individuals for business purposes. Similar to a sole proprietorship, general partnerships have certain liability implications. For example, every partner in the partnership carries equal liability with the other partners. From a tax perspective, the income from a general partnership flows through to the individual partners; thus a general partnership does not pay any taxes.
Corporation - is a legal entity that separates the owner(s) from the business and thus avoids any personal liability from corporate debts. In fact, corporations enjoy most of the rights and responsibilities that an individual possesses. The most important aspect of a corporation is the fact that it provides limited liability to its shareholders. From a tax perspective, a corporation can be taxed in several different ways depending on its classification (C-Corporation vs. S-Corporation), and there are advantages and drawbacks to both. We’ll help you determine which classification is right for your corporation.
Limited Liability Company (LLC) - is a flexible form of enterprise that blends elements of partnership and corporate structures. It is a legal form of a company that provides limited liability to its shareholders. This hybrid entity combines the asset protection of a corporation with the ‘passed-through’ tax treatment of a partnership.
Limited Liability Partnership (LLP) - is essentially a general partnership in form, with one important difference. Unlike a general partnership, in which individual partners are liable for the partnership’s debts and obligations, an LLP provides each of its individual partner’s protection against personal liability for certain partnership liabilities.