In this article, we examine the financial implications of
structuring as a corporation, and some of the benefits of using a holding corporation.
Could your business benefit from being
structured as a corporation or using a holding corporation in the corporate structure?
Not exact matches
Western Australia's largest indigenous
corporation has announced it is cutting jobs and assessing its member benefits
structure as a result of weak iron ore prices.
Whatever your reasoning, you're likely contemplating a choice that many entrepreneurs face: Should your enterprise be
structured as a limited liability
corporation (LLC) or an S
corporation (S corp), which is named after subsection S of Chapter 1 of the Internal Revenue Code?
Instead, most American firms are
structured as pass - through entities, such
as S -
corporations, partnerships and limited liability
corporations (LLCs).
Over seventy percent of U.S. companies are
structured as pass - through entities, such
as S -
corporations and limited liability
corporations (LLCs).
Determine the best legal
structure for the business, such
as partnership, limited liability
corporation or a sole proprietorship.
If you decide to go the LLC route, just make sure your lawyer
structures the operating agreement to read
as much like a «C»
corporation as possible.
Regardless of whether you have a pass - through entity such
as an LLC or a
corporation, it is important to understand that your entity
structure has tax - planning opportunities, and it is always prudent to seek the advice of a tax lawyer or accountant on the best way to pay the lowest legal tax.
A provision of the tax cut bill passed and signed last December offers a special break for pass - through business
structures: sole proprietorship, partnership, S
corporation, LLC, trust and estate, REIT, qualified cooperative, or tiered pass - through (such
as one LLC owning another).
Last month's article about
structuring one's business
as a C
Corporation versus a sole proprietorship, an LLC, an S
Corporation, or a partnership generated the following letter from a reader:
Gerard Bucas, president of computer - peripherals maker Great Valley Products, a $ 32 - million S
corporation in King of Prussia, Pa.: «Last year we raised $ 5 million in venture capital, which we
structured as subordinated debt so we'd be able to retain our S -
corporation status.
In its wake, we've seen residents in high property tax states rushing to pre-pay their 2018 bills, small businesses re-evaluating their organizational
structures, and
corporations positioning themselves for potentially massive repatriations
as well
as a future earnings windfall.
Known
as the limited - liability company (LLC), this
structure offers the best of all corporate worlds for many new businesses: personal - asset protection (normally available only to shareholders of C
corporations), elimination of corporate - level taxes (a benefit normally reserved for partners or S -
corporation owners), and flexible ownership rules (which S
corporations in particular lack).
This
structure is commonly used by
corporations as interest, a tax - deductible expense, is maximized.
To that end, EMLP also invests in things like pipelines and utilities
structured as C -
corporations,
as well
as Canadian firms that used to be royalty trusts, according to FactSet data.
Your small business may be legally
structured as a sole proprietorship, partnership or
corporation.
It has to do with the way
corporations are
structured and
as a new investor, this is one of the most important things you need to learn before you invest a single dollar into the stock market.
Globally, an increasing number of jurisdictions are recognizing hybrid
corporations as distinct legal
structures — such
corporations combine some benefits of both for - profit and non-profit organizations.
With this
structure, you are now able to sell ownership or shares in the business to others (including other businesses such
as a holding
corporation of which you own the shares).
As opposed to interlocks between widely - held
corporations, which can present the risk of decisions being made in the interests of an entirely separate entity, interlocks within a family firm's larger corporate
structure can present a governance benefit.
Before joining PNC in 2002, Mr. Demchak served
as the Global Head of
Structured Finance and Credit Portfolio for J.P. Morgan Chase & Co. and additionally held key leadership roles at J.P. Morgan prior to its merger with Chase Manhattan
Corporation in 2000.
A company currently
structured as a pass - through LLC may consider «checking the box» to be treated
as a C
corporation for 2018 and beyond.
MLP ETFs are generally
structured as C
corporations.
MLPs also may be at a disadvantage to comparable businesses that are
structured as C -
corporations (C - corps).
Meanwhile, REITs may benefit from new pass - through provisions, but MLPs may be at a disadvantage to firms
structured as C -
corporations.
Areas where
corporations have put this cash to work include: continued dividend increases and share buybacks, which return capital back to shareholders; ongoing investment and capital expenditures
as well
as research and development; and increasing productivity and lowering cost
structures.
And he has provided many elaborations and applications: the moral architectures of economic development, of escape from the welfare trap, of nuclear deterrence, of the
corporation and business -
as - a-calling, of the income tax, intellectual property, mediating
structures, ethnic politics, and even sports (the last however limited to Notre Dame football).
a set of values, beliefs, and
structure in a person's life in order to give them direction and a sense of right and wrong is fine, but organized religions are no more than large
corporations, and like any large
corporation are only focused on their bottom line... trying to control the public and extract
as much money
as they can from them by any means necessary... promoting fear, uncertainty, hate and a sense that they alone can offer salvation... for a price (although they are very cleaver about getting to this hidden and unspoken cost... after all these hundreds of years they have perfected their craft well!)
William H. Whyte's 1956 The Organization Man, for example, provides some insight into the
corporations of its own time, but not into corporate environments it could never have anticipated, such
as today's flat organizational
structures, with their fluid job descriptions, telecommuting, extensive outsourcing, and the like.
Whether by creating new collaborative
structures or working through existing agencies such
as local community development
corporations, neighborhoods need to assume the central role in designing and implementing strategies for their own improvement.
As a result, US corporations are exceptionally aggressive about structuring their income so as to avoid incom
As a result, US
corporations are exceptionally aggressive about
structuring their income so
as to avoid incom
as to avoid income.
As in any complex organization, you really need to get the group's structure right to be successful, as many failed corporations have discovere
As in any complex organization, you really need to get the group's
structure right to be successful,
as many failed corporations have discovere
as many failed
corporations have discovered.
The
corporation funds nearly 100 postgraduate students, working in areas such
as crop improvement, soil
structure and animal care.
The report must include a recommendation
as to which governance
structure best serves the objectives of TIFIA - continuing the program under the authority of the Secretary, establishing a government
corporation or a government - sponsored enterprise (GSE) to administer the program, or phasing out the program and relying on the capital markets to fund the types of infrastructure investments assisted by TIFIA without Federal participation.
On April 30, 2009, the automaker filed for Chapter 11 bankruptcy protection to be able to operate
as a going concern, while renegotiating its debt
structure and other obligations, [41] which resulted in the
corporation defaulting on over $ 4 billion in secured debts.
David, Whether to
structure the business
as a
corporation or LLC is an important question.
Now shove that profit - driven
corporation into a situation where change can only happen slowly, layoffs have cut staff down to the point that people are working sixty to seventy hours for a small salary, and you have a
structure for disaster when things shift quickly,
as they are now with electronic distribution.
A REIT is a fundamentally different corporate
structure from C -
corporations in the view of dividend growth investors, because REITs pay out most of their earnings
as dividends.
The Budget will also «prevent the asymmetrical recognition of gains and losses on derivatives for tax purposes,» and «prevent the deferral of capital gains tax by investors in mutual fund
corporations structured as switch funds.»
Eligible Worker - Owned Cooperative (EWOC): A retirement plan
structured as either a cooperative farmers» association or any
corporation operating on a cooperative basis except for a tax - exempt organization, a mutual savings bank, an insurance company, or a
corporation which furnishes electric energy or telephone service to persons in rural areas.
Universal
Corporation is
structured as a holding company, with Universal Leaf Tobacco Company
as its primary subsidiary.
The actual investment vehicle
structure (such
as a
corporation or investment trust) will vary by country, and within one country there can be multiple
structures that co-exist.
A lot of people buy things with characteristics they don't understand, such
as the nature of the underlying business or the capital
structure of a
corporation.
Concept # 1: A mutual fund is an investment company
structured as a business
corporation and managed by a Fund Manager.
This Budget will also «prevent the asymmetrical recognition of gains and losses on derivatives for tax purposes,» and «prevent the deferral of capital gains tax by investors in mutual fund
corporations structured as switch funds.»
Funds in each
structure are generally taxed
as corporations and treated
as regulated investment companies under Subchapter M of the Internal Revenue Code.
CorTS» are issued by
Structured Product
Corporation which is a company incorporated
as an indirect and wholly owned limited - purpose subsidiary of Salomon Smith Barney.
Unlike publicly traded residential home builders, eFunds are
structured as partnerships, not
corporations, and therefore are not subject to the same double taxation.
The most common ways to
structure a business is
as follows: The C -
Corporation; S -
Corporation; Sole - Proprietorship; Limited Liability Company and Partnerships are the most common.