I’m starting a business, so I need to set up a company, right?

Jon McGraw • October 7, 2019

With many opportunities available for small businesses, we are regularly engaged to assist with business planning and startups. “What is the best type of business entity?” is a question we regularly hear. And in similar fashion to many financial questions, we use the details to drive the decision.

Build the Foundation First

When starting any type of project, especially a new business, if you start with a good blueprint and build a solid foundation, you have a much better chance of success. The IRS tends to think logically: If a new venture looks like a business and acts like a business, it’s more likely the IRS will consider it a business. In the real world, this means from day one, the business should have its own bank account and credit card and shouldn’t be operating inside your personal checking account. It also means you should have a well-designed business plan with intent to make a profit. The type of company or business entity isn’t at the core of the IRS ‘business vs hobby” decision.

With More Risk and Complexity, Add More Protection

 

The simplest form of business structure is a Sole proprietor. Other structures such as Limited Liability Company , Partnership , S or C corporations each have their advantages and disadvantages based upon the personal situations for the business owner(s). These include the location where the business formed, the number and objectives of business owners, risks of operating the business, tax implications and more. In order to get it right, it is important that the unique needs of the founders be taken into consideration.

 

At Buttonwood, we develop client-specific strategy by thinking about assets, entity types, tax implications and liability concerns as interrelated to one another – not as standalone strategies.

For the same reason a business would hire a CFO, we serve as Family CFO for our clients. We coordinate comprehensive tax, insurance, estate, investment, cash flow, retirement, education and business strategies. We not only make specific recommendations, we also implement, monitor and adjust strategy as you and your family move through life. We do the work, allowing you more time to appreciate your wealth.

If comprehensive strategies are something you are interested in, simply click here to schedule an informal conversation to learn how our Family CFO services can benefit you and your family.

Recent Buttonwood Articles


Buttonwood Advisor reviewing year-end tax strategies
By Vince Pastorino December 4, 2024
As you gear up for a busy holiday season, year-end tax strategies tend to take a back seat, right? We get it, and we’re here to provide a summary of helpful year-end tax tips that are simple to implement!
Buttonwood Investment Policy Committee Update
By Kyle Hogan November 18, 2024
In our September rebalance for nontaxable assets, we adopted a cautiously optimistic stance, decreasing risk slightly due to election uncertainties.
Buttonwood Financial Group Investment Policy Committee Update
By Kyle Hogan October 8, 2024
After the stock market rally in the first half of the year and amidst the uncertainty of the upcoming election, for assets without tax implications, we are reducing risk by trimming some of the overweight for our active positions.
Two people on a sailboat enjoying retirement after implementing the Mega Backdoor Roth IRA strategy
By Mitchell Smith August 20, 2024
The Mega Backdoor Roth strategy allows individuals to contribute to both a Roth IRA and a Roth 401(k), then add a third Roth component to their savings. In this update we share what you need to know about this strategy, and how to work through the details to implement.
Roll of
By Jon McGraw July 19, 2024
As the 2024 election season heats up in the U.S. it’s natural for us humans to feel a sense of unease. But here is something to remember: fixating on sensational headlines can be detrimental to your financial well-being.
Buttonwood Investment Policy Committee Update
By Kyle Hogan June 14, 2024
As we enter the summer months, our existing bullish stance remains intact.

Are you ready to explore the benefits of your very own Family CFO?

LET'S TALK

Buttonwood Services


About Buttonwood Financial Group


Share by: