BUSINESS STRUCTURING

Business structures are essential from the long term perspective of any business. Furthermore, it is not a onetime activity, with time and changing business scenario, and one needs to structure and streamline their organizations to stay relevant. A good business structure maintains a delicate balance between the short term, medium-term, and long term objectives of the business. The succession plan, taxation plans, compliance, and regulatory considerations, business risks, likely future developments, and the privileges of limited liability is also to be taken into notice. 

We at True Tax and Accounting Services provide you the assurance of a business structure that is robust and in tune with the business trends. It is how effective structuring facilitates your business growth:

  • Opens up several funding options and brings in operational efficiencies that help in maximizing wealth and achieve business goals. 
  • Create a tax-efficient business structure from all aspects.
  • Leading to the minimization of compliance and regulatory costs.
  • Smooth transition in case of family businesses for ownership succession. 
  • Minimization of risk while protecting all assets. 

Your options for business structures, where can bring our expertise to the table are: 

Sole Proprietorship

It is a straightforward business structure, wherein the business is owned and operated by a single person. The business is operated under the name of the owner, and registration of a business name can be done in the owner’s state.

The maintenance costs of such types of business entities are on the lower side, and minimum compliances are required. The procedure of establishing and managing a sole proprietorship business is effortless, and you can also avail of the benefits of the capital gain tax. 

Partnership

Here a group of two or more persons manage a business and share the profits and losses. The contract is voluntary, and the partners are jointly responsible for the debts and litigations of the business. 

A business structure based on the partnership model is easily manageable, and maintenance costs are also on the lower side. Here again, minimum compliance is required, and taxation of capital gains is done at the partner’s level. 

Limited Partnership

In this business structure, the partners will have limited liability, as the name suggests. In this kind of business structure, the assets are protected to a great extent, and the partners are capable of accumulating income. For taxation purposes, the calculation is similar to that of a company. 

For more details regarding Business Structuring, please call us.