Category - Chap 2 - Customized Entity Structures

You might be one of three situations. First, you have a partner in your business already and there’s no getting around it unless someone meets with an accident. Or, you work alone and don’t see that ever changing. Or, you have options- either to add [...]

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As mentioned in other areas of this book, your family might benefit from adding children and / or parents to your entity. For example, you could have your children be 10% owners each. They in turn pay very little tax compared to you, and they can [...]

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This is one of the most common situations where you own two entities that do business between themselves. For example, you are a typical poor accounting firm with the usual high maintenance clients, and you feel that everything would be better if you[...]

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You might have two business entities, and you want to combine them but they are also very different. For example, you are a realtor and your spouse is an IT consultant. We could create a holding LLC called Smith Ventures which owns the realtor LLC [...]

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Another thought along these lines involves a multi-member LLC where you and another non-spouse partner are the members. Later in a later chapter you’ll learn that one of the limitations of an S corporation is that distributions must be made in the [...]

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A simpler way to accomplish the same thing as above is to create three entities again, but the multi-member LLC is owned by you and the other guy, not the S corporations. The following is the preferred arrangement for a host of reasons, especially [...]

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There are some things you need to work through with the multi-entity arrangement. Depending on your situation, some of these things might be show-stoppers. However, don’t take the first answer as the only answer. A multi-entity scenario is super [...]

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Alright… we just explored some of the pains in the butts with a multi-entity structure. Let’s recap the benefits so you can value-assess the pros and cons[...]

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Imagine you and another person want to form a business together, but you live in different states such as Minnesota and North Carolina. Where do you put the entity? In the end, it doesn’t matter since you would probably have a foreign filing [...]

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Sounds like a dance move doesn’t? “Oh man, I hurt myself doing the Cali S Corp twist.” “Are you gonna need surgery[...]

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