New Business Strategy
LLC, S Corp, or C Corp? We analyze your situation and recommend the entity structure that fits your goals and minimizes your tax burden.
What This Is
Entity selection consulting looks at your specific situation and recommends whether you should operate as an LLC, S Corporation, C Corporation, or sole proprietorship. The decision affects how you pay taxes, how much personal liability you carry, and how easily you can bring on investors or partners down the road.
This isn’t about filling out formation documents. That comes later. This is about understanding your goals, your projected income, and your plans for the business before locking in a structure. We walk through each option, explain the tax treatment, and provide a recommendation that fits where your business is headed.
The Analysis
The Analysis
We look at your current situation and where you want to go. What industry are you in? Do you expect significant profits in year one or will it take time to build revenue? Are you planning to reinvest or take distributions? Will you need outside investment? These questions shape which structure actually makes sense for you.
The Recommendation
The Recommendation
You receive a clear recommendation with the reasoning behind it. Not generic advice to just form an LLC because someone online said so. An explanation of why a particular structure fits your situation, what the tax implications are, and how it supports your growth plans.
Why This Matters
The wrong structure costs money every year. An S Corp election that made sense for a solo consultant becomes a headache when you want to bring on investors. A C Corp set up for a business that never raised capital means double taxation on every dollar of profit. A simple LLC when you’re earning $150,000 in net income means thousands in unnecessary self-employment taxes.
Changing your structure later is possible but expensive and complicated. Dissolving a C Corp has tax consequences. Revoking an S Corp election involves waiting periods. Converting between entity types often triggers taxable events. The time to get this right is before you file anything, not after you realize the structure doesn’t fit.
Tax Differences
Tax Differences
The tax treatment between entity types is significant. An LLC passes all income to your personal return and subjects it to self-employment tax. An S Corp allows you to split income between salary and distributions. A C Corp pays its own taxes but creates double taxation when profits come out. The right choice depends on your projected income and how you plan to use the money.
Growth Constraints
Growth Constraints
Some structures limit your options. S Corps have restrictions on ownership that complicate venture capital investment. Single-member LLCs lack the formal structure some lenders want to see. The entity you choose today affects what opportunities are available to you in three or five years.
What Changes
You start your business with a structure that fits your actual goals instead of hoping you picked correctly. The entity type aligns with how you plan to operate, how much you expect to earn, and where you want the business to go. No second-guessing whether you should have done it differently.
When you work with a CPA or attorney down the road, they aren’t recommending you restructure something that was set up wrong from the start. You built on a solid foundation. The entity selection connects to your tax strategy, your liability protection, and your long-term planning from day one.
Clarity Before Filing
Clarity Before Filing
You understand why you’re choosing the structure you’re choosing. Not because someone online said LLCs are the best, or because your friend set up an S Corp, but because you’ve looked at your specific numbers and goals and made an informed decision based on your situation.
A Foundation for Growth
A Foundation for Growth
Your business structure supports where you’re headed, not just where you are today. Whether that means flexibility to add partners, the structure investors expect, or the tax treatment that keeps more money in your pocket as revenue increases.
The Treasure Valley's Tax and Accounting Team
The Next Step:
A Short Conversation
Tell us what you're dealing with. We'll listen, answer your questions, and give you a straightforward quote.
