Entity Structuring and Tax Compliance
The entity structuring decision will impact more than simply tax results. It also affects self-employment tax, loss deduction, capital gain versus ordinary income, and gain exclusion. It will influence other business decisions, too, like any claims of creditors and the relationships between fellow shareholders, partners, or co-investors.
Entity structuring can be the single most important tax consideration for businesses. Cendrowski Corporate Advisors can help ensure you are well-informed of the implications unique to your business.
Questions to Ask About Entity Structuring
The selection of the appropriate entity structure for a business is often the single most important tax consideration for taxpayers. When should you choose a partnership versus a corporation? What should be avoided when forming a new entity? If a partnership is a strong option, should it be a general partnership, a limited partnership, or a limited liability company? If a corporation is best, should it be an S corporation or a C corporation? Should there be a revocable trust or an irrevocable trust?
Cendrowski Corporate Advisors consultants help you identify the optimal choice of entity strategy for achieving the best tax and business results for your business. Our familiarity with the tax qualifications and tax reporting for each and every entity provides a distinct advantage to our clients.
REIT Qualification and Tax Compliance
Real Estate Investment Trusts (REIT) and Umbrella Partnership Real Estate Investment Trusts (UPREIT) are time-honored and IRS-approved vehicles for aggregating interests in real estate and providing access to investment capital in a way that’s both tax compliant and tax-efficient. Like any tax incentive structure, there are detailed, specific requirements to qualify for this favorable tax treatment.
Cendrowski Corporate Advisors, as one of the original firms to develop REIT qualification documentation and reporting, sees REIT qualification and compliance as much more than a number-crunching exercise. The process requires a thorough understanding of the services attendant to REIT income streams and comprehensive knowledge of the intricacies and nuances of investments in real estate assets.
We can assist REIT management in meeting its qualification obligations as an outsourced contractor. Alternatively, we can train your organization’s REIT management personnel so they’re able to perform their own documentation and reporting internally.