Entity decisions can have long-term tax implications. Luma helps business owners consider tax consequences when evaluating business structures and future changes.
Businesses can operate through different entity structures.
The tax implications of those structures can differ.
A business’s circumstances may also change over time, meaning a structure selected years ago may need to be considered within the context of today’s operations and future plans.
Luma’s Strategic Tax Advisory services include evaluating entity choices and their potential tax implications.
Business Entity Tax Planning shouldn’t simply ask:
Which entity has the lowest tax?
The broader situation matters.
Factors may include:
Luma approaches entity considerations within this larger picture.
As a business grows, its circumstances can become more complex.
It may add owners.
Expand into new states.
Change how profits are distributed.
Complete significant transactions.
Develop new lines of business.
Those changes can make it appropriate to consider the tax implications of the company’s structure as part of broader strategic planning.
A company’s structure does not exist separately from its geographic footprint.
For businesses operating across state lines, entity considerations may interact with:
That is why Luma can connect entity planning with its broader multi-state expertise.
Luma’s approach is grounded in analysis rather than generic recommendations.
Lety continuously researches evolving federal and state tax legislation, court cases and administrative regulations.
When a business is evaluating an important structural decision, the goal is to consider the tax rules relevant to its actual circumstances.
What is business entity tax planning?
It involves considering how a business’s structure may affect its tax circumstances and evaluating potential tax implications of entity decisions.
Does Luma work with different entity types?
Yes. Luma’s business compliance services include C-Corporations, S-Corporations, partnerships and LLCs.
Can Luma help if my company already exists?
Yes. Strategic planning isn’t limited to new businesses. Existing companies may also evaluate entity and structural considerations.
Does multi-state activity matter?
It can. Companies operating in multiple jurisdictions can encounter additional tax considerations that may need to be evaluated alongside entity structure.
Can Luma model potential outcomes?
Yes. Tax Scenario Modeling is part of Luma’s Strategic Tax Advisory offering.
