Episode 353: Jonah Gruda on Choosing the Right Entity Type for Your Practice

February 16, 2021

A common question independent consultants ask is what type of entity they should use to establish their practice.

In this episode, Jonah Gruda reviews the most relevant aspects of the five types of entities that are most commonly considered:

  1. Sole proprietorship
  2. Partnership
  3. Limited Liability Company
  4. S-Corporation
  5. C-Corporation

For each entity type, Jonah reviews:

  1. Formation requirements
  2. Liability Exposure
  3. Taxation at the entity level
  4. Tax rates
  5. Tax reporting
  6. Compensation
  7. Number of owners
  8. Self-employment tax

Jonah Gruda is a Tax Partner at Mazars and specializes in income taxation, executive compensation and stock option planning, estate and gift planning and wealth preservation.

Jonah can be contacted through Mazars or LinkedIn.

Download this a comparison of entity types that Jonah and I discuss on the show.

Key points include:

  • 01:48: Introduction to the two broad categories of business entities
  • 08:56: The three types of partnerships
  • 12:33: Legal operating agreements
  • 15:11: Overview of limited liability partnerships
  • 18:06: Overview of a limited liability company
  • 27:31: Electing to be taxed as a C corporation
  • 29:55: S-corps and c-corps
  • 43:27: Filing fees