1d • General discussion
Intentional Entity Formation
There are a lot of services out there that are eager to "put an LLC after your company name." I suppose that fine. It's sort of like putting that J.D. after mine. After we get past those couple of letters, people just call me "Chris."
Entities, such as corporations and LLC's, are tools and these tools can be used to accomplish different things. I often have clients come to me as they are about to start a business with the idea that they need an LLC. Why? What purpose will it serve?
Annoyingly simple questions that are often rather difficult to answer.
Sometimes, there are legitimate liability concerns. Under the right circumstances, an entity might be a good tool to create some tax efficiency for the business or its owner. Compartmentalizing certain capital or real property assets from the liability of a company's operations is occasionally the subject of discussion.
In my practice, I will not form an entity for a client until I understand what it is the client intends to accomplish. The type of entity is then selected to best accomplish that objective and is structured in a manner to support that goal.
Later today, I will spend a little time with a client who wants to form a new LLC. The plan is to record our time together so that a video can be shared here.
I look forward to hearing from you and welcome any questions you might have.
It is time I get myself another cup of coffee and see about getting myself busy with work.
Chris
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Intentional Entity Formation
