Corporate structure is an important conversation to have when creating your succession objectives. The type of corporation has a major impact on your transition. Are you going to sell to a public company? Are you going to go public? Who are your potential owners or future owners? Are you going to keep your company in the family? How many owners are there going to possibly be? The answer to all these questions would encourage one corporate form over the other.
In 80% of our consulting cases, some change of corporate structure occurs. Usually we see a corporation set up at inception with little thought to the long term objectives. As a result, a change often occurs as the business becomes significant. So what are the key differences? And which of those factors is most important to you and your company? Follow the link below for a very basic overview of C-Corps vs. S-Corps vs. LLCs.
