Business/Entity Formation

Business/Entity Formation

As a business owner, there are a number of choices you need to make regarding the legal formation of your entity.  A variety of business and tax considerations need to be evaluated to determine which type of entity (Proprietorship, Corporation, Partnership, Limited Liability Company) best suits your needs.

Typical business considerations
include issues involving:

  • Limited liability, management
  • Continuity of life
  • Transferability of interests
  • Types of owners
  • Number of members
  • Classes of interests

Typical tax considerations include:

  • Taxability of income
  • Certainty of tax status
  • Distributions to owners
  • Special allocations
  • Deductibility of losses
  • Basis adjustment availability to entity assets
  • Flexibility and structuring of retirement payments
  • Taxation upon distribution of depreciated assets
  • Insolvency
  • Exceptions to discharge of indebtedness
  • Accounting method
  • Taxable year
  • Treatment of medical insurance premiums
  • Employment taxes

How BPMJ&L can assist you:

BPMJ&L’s attorneys and expertise can assist and guide you to the choice of the legal vehicle under which you will do business and educate you with respect to the tax features involved. We can also be of assistance in the conversion of your current business organization into a new or different organization.

BPMJ&L has assisted hundreds of business owners in regards to business formation and continuity and we’d love to be a resource for you as well.




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