Business Entity Selection

Selecting the proper entity for your business isn’t just a legal formality—it’s one of the most important financial decisions you’ll make.
The structure you choose affects how much you pay in taxes, how much personal liability you carry, and how easily your company can grow or bring in partners.

At Partridge & Associate CPAs, we have decades of experience helping new and established businesses across Scottsdale, the Greater Phoenix Valley, and all 50 states choose the best structure for their goals. We also assist businesses that are already operating to transition into a new entity type when it makes sense to lower tax burdens and increase liability protection.

We Help With:

• Sole Proprietorship

• Partnership

• Corporation (including S‑Corp)

• Limited Liability Company (LLC)

• Transitions from one entity type to another

Sole Proprietorship

A sole proprietorship is the simplest way to start a business, but it offers no liability protection and limited tax planning opportunities.
How we help: We evaluate whether starting as a sole proprietor fits your immediate goals and help you plan when and how to transition into a more protective entity as you grow.

Partnership

Partnerships allow two or more people to share ownership and profits, but they also share liability.
How we help: We guide you in drafting agreements, determining profit splits, and exploring options like an LLP or LLC to limit personal exposure and improve tax efficiency.

Corporation (Includes S‑Corp)

A corporation provides strong liability protection and may allow for significant tax savings—especially with an S‑Corp election. However, there are strict compliance rules.
How we help: We determine if a corporation or S‑Corp election is right for your business plan, handle filings, and set up payroll and distributions to meet IRS requirements.

Limited Liability Company (LLC)

An LLC offers flexibility and liability protection, with the ability to be taxed as a sole proprietor, partnership, or even an S‑Corp.
How we help: We evaluate your projected income and growth plans to structure your LLC in a way that maximizes tax benefits and shields personal assets.

Transitioning From One Entity to Another

As your business grows, your original structure may no longer be the most efficient. Moving from a sole proprietorship to an LLC or electing S‑Corp status can dramatically reduce taxes and limit personal risk.
How we help: We handle the transition process, filings, and tax implications so you can make the change smoothly and with confidence.

Build Your Business on the Right Foundation

Choosing the right entity from the start—or transitioning at the right time—can save you money, protect your personal assets, and set you up for long‑term success.

Ready to find the best structure for your business?
Call (480) 990‑2727 to speak with Partridge & Associate CPAs about our business entity selection services.