A Quick Look at Corporate Structuring

Posted by on May 31, 2014 in Blog, Business Development, Business Formation | 0 comments

A Quick Look at Corporate Structuring

Corporate Structuring Defined:

Corporate structuring is the management of recognizing the legal ownership and operational structure of a company. This structure is vital to the foundation of any company. This includes what type of incorporation is best for a business whether that be Limited Liability Corporation (LLC), an S Corporation, or C Corporation. In other cases the best structure will be that of Sole Proprietorship with a DBA or a General Parternship.

The designation of S Corp over C Corp has very important tax consequences that must be considered prior to filing for S election. In the case of LLCs, included is the decision to be manager or member managed. There are different operational and tax advantages to all of these options and it is important to make the decision based on the independent needs of the business.

This structure must be agreed upon by all incorporating officers or members and managers of the company and is a decision that should not be taken lightly. Also included in corporate structuring should be a detailed operational agreement between all of the principles of the company. This will secure a predetermined course of action for the business given any disagreement arises between officers or members.

Corporate structuring can be done by the incorporating parties directly, but for situational advice and a “what if” perspective, it may be in the best interest to consult with a professional in order to structure the business.

Should you have any further question or seek additional advice feel free to contact us.


Leave a Reply

Your email address will not be published. Required fields are marked *