From the tax perspective, one of the first things we do with a new company is advise them on the type of entity that they will form and how they are going to do business. This is a legal matter, but there are some tax ramifications on what type of entity to choose. Tax answers are very fact specific, so there is not a generic answer on what kind of business entity to use. Some factors to consider include the number and types of investors, long-term tax strategies, exit strategies, and even where they are going to be doing business. I think the important caveat is to check with your tax advisor to discuss your specific facts and circumstances.
