Formation- Corporations, Partnerships and Limited Liability Companies
Closely-held businesses can be operated through different types of
entities. The entities have different tax consequences which must be
considered in connection with their formation. While most
operating businesses have traditionally used the corporate form for
limitation of liability purposes (generally an “S” Corporation due to
the tax advantages), in recent years the Limited Liability Company has
been the “entity of choice” in Maryland. Certainly, however,
there are still good reasons to select the corporate form. The limited
partnership form is generally utilized in the context of family
enterprises where the paramount objective is to shift interests in the
entity to the next generation. Still, most of these estate planning
considerations can be accomplished under the limited liability company
form. Importantly, recent court cases have required more careful
planning when structuring these family entities. Please call us to
discuss these considerations in the selection of the appropriate entity.
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Aryeh's AIPAC Presentation of June 1, 2008
