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Tax planning during the business formation stage

On Behalf of | Mar 11, 2020 | Business Formation

There is a lot more involved with the process of starting an Oregon business than many entrepreneurs realize. While a good idea and a certain set of skills is a major part of launching a new company, there are both legal and financial considerations during the business formation process. Tax planning during these initial stages is especially important, particularly in terms of choosing the right business entity.

Taxes are an unfortunate but inevitable part of doing business. Knowing what to expect and planning for it from the beginning can help avoid surprise expenses in the future. Entrepreneurs will also want to consider how their personal and professional taxes, as well personal and professional liabilities, will be impacted by their choice of business structure. Starting a company is an investment, and smart choices in the beginning can help protect that investment.

An LLC is one of the most popular choices for business entities, but there are several different types of LLCs. Factors that will impact a decision include how many owners the business has, how owners will share the profits and more. While it is possible to change a business structure in the future, it can be complicated and come with certain consequences.

Business formation is an important stage in the life of an Oregon business. When choosing the structure and planning for taxes, it is best to think long-term. Before making any important choices that will impact the life of a company, an entrepreneur may find it helpful to speak with an experienced attorney regarding the option that makes the most sense for the individual business.