Having the correct corporate structure for a company is impacted by many factors, including ownership, investor, and tax issues.
Certain corporate structures are more favorable to minimize taxes than other options and a change from one form to another may be warranted in advance of an anticipated business sale. In several cases, however, the IRS has a waiting period in order for these tax advantages to be accepted.
Corporate Structure should be carefully considered and based on qualified advice from an attorney or accountant. In the long run, this may reduce taxes considerably if implemented correctly and in a timely fashion.