SALT and Structure: Keep It Simple Sxxxxx????
Posted by accountingweb on 2871
I was talking to a CFO the other day, and it made me think of the following: Does your company or client operate its business within a simple organizational or entity structure? Does it operate all of its business activities through one entity or several entities? Whether or not your company or client should operate its business through one entity or several entities depends on several factors, such as:
- Does the company have more than one business line, product or service?
- Does the company manufacture products and provide services as well?
- Is the company profitable in general? Are certain business lines profitable and others are losing money?
- Does the company sell wholesale and retail?
- Does the company sell its products and/or services over the Internet?
- Does the company have operations in foreign countries?
- Does the company have valuable trademarks, patents, copyrights, or other intangibles?
- Does the company want to decentralize or centralize certain functions such as, accounting, legal, tax, purchasing, etc.?
- Should the company have separate entities for legal reasons? Liability reasons?
- Does the company want to streamline its supply-chain, obtain economies of scale?