FPA Journal - Focus: According to Form: Choosing the Right Business Entity: "Different motivations result in different business-entity selections."
Virtually every corporate finance class and most entrepreneurial classes cover the standard organizational forms very early in the course. The timing is somewhat unfortunate as most students are not yet warmed up to finance. In part as a result, coverage is often limited. For instance here is what my students cover in my introductory corporate finance classes. We focus largely on the tax issues and personal vs limited liabilities. However, there are many other variables that need to be considered . For instance what if you want more than 35 shareholders, a S-corporations (which does not allow more than 35 shareholders) would be inappropriate.
In the Journal of Financial Planning, Nancy Opiela discusses the choice of organizational form with financial planners. As she writes "Different motivations result in different business-entity selections, just as different personal goals inform unique asset allocations. And continuous changes in tax law and case law make any decision made today a moving target."
http://www.fpanet.org/journal/articles/2004_Issues/jfp0704-art1.cfm
Good stuff! and definitely recommended to anyone starting a business!
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