Entity Election Guidance
Choose the most tax‑efficient structure: LLC, S Corp, C Corp, or Partnership.
We make it simple, the way you'd want your brother to explain it.
When you're building your business—especially as a founder, creative‑entrepreneur or early‑stage operator—it's not just about what you do today, but how you structure yourself for tomorrow. The legal form you choose (and how you elect to be taxed) can have major implications for liability, taxes, growth and exit planning. At Nuvex, we help you sort through the entity‑structure jungle, evaluate your status today, and choose the smartest path forward for your business and personal tax journey.
Our Service includes but is not limited to:
- A clear overview of entity types (LLC, partnership, S Corporation, C Corporation) and how they compare.
- Analysis of how each entity affects liability protection, tax treatment, ownership structure, and future investment‑readiness.
- Tax‑classification discussion: e.g., how an LLC may elect to be taxed as an S Corp or C Corp.
- Consideration of your current revenue/expense profile, projected growth, number of owners/shareholders, and exit strategy (sale, raise capital, hold long‑term).
- Practical checklist of the steps and filings needed: for example, to elect S Corp status via Form 2553.
- Trade‑offs explained: pass‑through taxation vs. potential double taxation; self‑employment tax; limitations on types of shareholders; compliance burdens.
- Recommendations tailored to your state (especially if you're based in New York City) and your business model (service‑oriented, product‑based, capital‑raising, investor‑backed).
- Final session to walk you through our recommendation, answer questions, and outline next steps (including the filings we can assist you with).
Why this matters:
An LLC by default offers flexibility and pass‑through taxation, but it may make sense later to elect S Corp or C Corp status depending on growth and profitability.
An S Corporation can help reduce self‑employment tax burden in the right situation—but comes with limitations (e.g., ≤ 100 shareholders, all U.S. residents) and compliance requirements.
A C Corporation is often the choice for entity types seeking to raise equity, issue shares at scale, or retain earnings—but it may mean corporate‑level tax then shareholder tax (double taxation).
Choosing wrong or late often means higher tax bills, missed deductions or complexity you didn't anticipate.
No jargon‑overwhelm, just the right structure for you, in this stage of your life & business.
Book a 1:1 session and let's choose your best structure together.