Forming a new entity begins with using business objectives to determine the entity type that will best suite your needs, for example, a corporation, limited liability company (LLC) , or partnership. To get the most out of your business, choose the right type of entity to help maximize your chances of financial and operational success.
Once you’ve selected the entity type, you will then be required to choose the jurisdiction(s) where your entity will do business. Factors like where the company is located, where its customers are located, and whether it may be best served by a particular jurisdiction because of tax law or corporate governance regulations, will help steer your decision-making.
It’s also important to understand the tax implications of your choice of entity and jurisdiction. Your accounting or tax department can help identify tax obligations.