Preferred entity structure when acquiring a new business?

by a searcher from New York University - Leonard N. Stern School of Business

4 months ago

Hi Everyone,
I hope this message finds you well. I am seeking your insights on the preferred entity structure when acquiring a new business. Specifically, I am interested in understanding the best practices and preferences, particularly in the context of an asset-only deal.
Your expertise and experiences would be greatly appreciated.
Thank you in advance for your valuable input.

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13 comments

searcher from The University of Chicago - Booth School of Business

It depends one approach would be to see how much cash you expect the business to each year in a C corp, total net income of the business = taxable income to you. Vs how much in wages you would expect to pay yourself in an S Corp looking at the taxes paid in both scenarios. Again, I don’t know the structure of the co, this is only one approach.

2 months ago | like reply | 0 likes

searcher from Rochester Institute of Technology

Spend some time familiarizing yourself with the diff entity types and their features. It will always come in handy and better informs your conversations with lawyers and accountants.

2 months ago | like reply | 0 likes

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