Startups Stack Exchange Archive

Seeking process: Inputs and key considerations in choosing a business structure

• posted by: gatorback on 2016-12-31
• tagged: business-registration, business-structure
• score: 1

BACKGROUND \ DEFINITIONS

When choosing a business structure, LLC, S-Corp, etc: it can viewed as a process. Assuming that one is in the USA: the inputs of the process include choosing:

1. business structure for the purpose of IRS taxation filing
2. business structure for the purpose of filing at the state level
3. number of partners in the small business

For this discussion, we can refer to a combination of line items 1&2 as a ‘business-structure pair’. Example a Florida LLC (1) that files as an IRS S-Corp (2) enjoys state-income tax (5.5%) exemption.

Outputs of the process include advantages and disadvantages when compared to other choices:

1. Double Taxation (disadvantage)
2. Exemptions from annual reports, directors + shareholder meetings (advantage)
3. State income tax exemption (advantage)
4. Federal income tax advantages / disadvantages
5. Other TBD considerations

Ideally there a grid (table) that enumerates the combinations of ‘business-structure pairs’ on the vertical axis and the outputs of key outcomes / consideration on the horizontal axis (line items 4,5,6…)

QUESTION

• Does such a unicorn (grid) exist?
• If not, what other key considerations should one consider (line items 8+)
• Are there any additional inputs to the process?

If there are other critical inputs to the process, please feel free to edit the question or post a comment, as identifying inputs (and outputs) are central to this Q&A. One could make the case that specific context (below) are inputs to the process.

SPECIFIC CONTEXT

A Florida company with no employees (all work to be done through contractors) with one owner and no investors.

No Answers

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