Sole Prop, S-Corp, or C-Corp? Demystifying Early Tax Strategy for Founders - With Dave Wanis, Partner at Weaver

[email protected] | 212.731.4230 | Book an Appointment Here (34) Madhur Duggar | LinkedIn   M&A Insights New Podcast Episode Drop!💡 Founders: Choosing between a Sole Prop, S-Corp, or C-Corp can make or break your tax strategy.I sit down with Dave Wanis, Tax Principal at Weaver, for the first episode in a series we’re doing together on tax strategy for entrepreneurs.💡 This episode is titled: “Sole Prop, S-Corp, or C-Corp? Demystifying Early Tax Strategy for Founders”🎙️ Dave put it best: “The most tax-efficient thing you can do is talk to an advisor early and often.”🔑 Key Takeaways:Plan Early, Review Often: The biggest founder mistake? Setting up an entity on Day One and never revisiting it. Your structure should evolve with your business.Flexibility of LLCs: LLCs aren’t just one thing — they can be taxed as a Sole Proprietorship, Partnership, S-Corp, or C-Corp. Choices will vary depending on many moving pieces including current and future profitability, salary needs and exit horizon   Self-Employment Tax Surprises: Sole proprietors often miss that 100% of income is subject to self-employment tax — a costly mistake if you’re not prepared.S-Corp Advantages: With S-Corps, founders must pay themselves a salary, but profits above that can avoid employment tax — creating real tax savings.State Nexus Risks: Expanding across states? Watch out for state income, payroll, and sales taxes. Ignoring “nexus” is one of the biggest red flags Dave sees in diligence.Investor Readiness: Entity choice today impacts investor interest tomorrow. Acceptance of S-Corps is increasing although recent regulatory changes are making C-Corps more attractive.This is just the start — we’ll be diving into more advanced topics with Dave in upcoming episodes (think asset vs. stock sales and Section 1202).Madhur Duggar is a Senior M&A Advisor at Excendio Advisors and focuses on IT ServicesReach out to Madhur at [email protected] or 212.731.4230  Book an Appointment with him on his LinkedIn at (34) Madhur Duggar | LinkedInCheck out Excendio Advisors and our amazing content at www.excendio.comReach out to Dave Wanis on his LinkedIn at (39) Dave Wanis | LinkedIn www.linkedin.com/in/madhur-duggar