Tax Planning
Your entity was chosen for a business that no longer exists
The problem
Structure is usually decided at formation, when the business is smallest and the stakes are lowest, and then never revisited.
Why it matters
Structure affects tax rate, self-employment tax, benefit treatment, the ability to add partners, and what a sale looks like. Outgrowing your structure is expensive in ways that never show up as a line item.
How to know if you have this
- The entity was formed more than five years ago
- Profit has grown substantially since formation
- You have multiple businesses, properties or locations under one entity
- You are considering partners, investors or a sale
How Advisory Motion solves it
- 01Review current structure against profit, ownership and growth plans
- 02Model the tax and liability effect of alternatives, including transition cost
- 03Address multi-entity and real-estate separation where it reduces risk
- 04Sequence any change to minimize disruption and cost
Illustrative example
Real estate in the operating company
Separating the building into its own entity improved liability posture and created a defensible rent arrangement — with a measurable annual tax benefit that had been available for years.
Illustrative composite · not a client identification
Where this connects