BergerCPAFirst

Choice of Entity Structure

All businesses, small, medium, or large scale, aim to achieve success. How one defines success may differ, but success is the ultimate goal. Entity structure can significantly impact whether the business succeeds and whether the right path to sustainability and financial stability is taken. Therefore, it is accepted that the choice of entity structure must be made wisely!

While factors like the number of owners and level of personal liability and risk play a significant role in the choice of entity structure, the financial aspects like capital requirements, the credibility which leads to the ability to raise or borrow money, the taxation structure, and so on should also be considered in depth when making a choice. A proprietorship where a single person owns the business gives the sole proprietor complete control over business decisions and increases liability or risk. Sharing ownership will lead to lesser control over business decisions and lesser risk or liability. However, making a choice is not as simple as this.

One needs expert advice from the planning stage to ensure the right start is made. For example, the new business formation services offered by Berger CPA Accountants. Advisors, a host of specialized services are offered:

  • Preparing an initial business plan to clarify management, marketing, and financial goals.
  • Identifying start-up capital needs and identifying sources and backup sources for these needs, evaluating and quantifying the borrowing power of a business proposal.
  • Evaluating tax structure, legal exposure, ease of operations, and portability if required to develop the proper business structure.
  • Preparing a cash flow budget to deal with even sudden and unexpected cash requirements with relative ease.
  • Establishing billing and collection procedures to maximize cash flow and monitor and control cash flow.
  • To prepare and file for local and state licenses, permits, etc., and to file for the Federal Employer Identification Number.
  • Putting in place full compliance with taxation laws and employment laws.

This is just an essential list of everything one will benefit from when taking the help of professional services in the initial stage before actually starting the business! There are so many more nuances to consider, paperwork to be completed, planning, and filing to be done… Start right with the help of the right experts!!

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