I have bought into multiple units of one franchise. I'd like to mitigate taxes and maximize protection. I think that means each should have it's own S Corp...thoughts?
Separate entities for each revenue stream is cleanest and safest for liability and ease of accounting.
As for whether to choose a corporation or LLC depends on other factors, such as your current tax situation and whether others are involved. This is a decision best made with your CPA.
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What was the thoughts here are easy. You must get to a corporate lawyer. You have to have the papers done just right for your circumstances goals and the pricing structure of the business including where it’s located where the locations are. This is not something to be done through a public website. This is a sit down serious matter it’s going to take some doing. If you are investing in a business as it seems you have you can also invest in a lawyer and a tax accountant
All the answers above are right on the money, and having the right advisors available to you is one way to save you money in the long run.
I suggest you keep the simplest forms as possible for the business you are getting into. Think of it this way, Chrysler USA is an LLC.
This is not legal advise nor it forms attorney client relationship.
As both a franchise and a corporate attorney, there are multiple considerations to be taken into account. Ms. Koslyn is correct that one of the simplest and cleanest structures is to place each revenue producing business into its own company. The next question is whether you should own those companies individually or via a holding company. There may be business, financing and legal reasons why you may wish to form a holding company to own each of the operating companies. Your accountant should discuss with you the tax benefits of any preferred structure. Afterwards, it is likely that you will need to obtain the franchisor's permission to put the structure in place, especially, if the optimal structure (from a tax perspective) necessitates the assignment of your franchise agreements.
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