Small Business and Startups

Structural Issues

The Gabriele Group aspires to be the first call for entrepreneurs who have made the exciting decision to start or buy a new business. We have been fortunate to be involved in building the foundation blocks for businesses that were later sold for significant gains for the owner(s).  The legal form of a business will often determine how it is managed, how it acquires capital for growth, how the business and its owners are taxed, and ultimately, how it is transitioned to new owners.

The first question to be asked by the new business owner is how to structure the entity. The possible choices include unincorporated sole proprietorship, partnership, limited or general, corporation, S corporation, and finally, LLC or Limited Liability Company.

Each alternative has its advantages and disadvantages depending on the vision and goals of the owner. Although structure can be changed during a business life cycle, this can be costly and inefficient, so careful planning at the beginning is essential.

Business Succession Planning

We at TGG take pride in providing proactive counsel to our business owners. One issue that should always be considered by the owner is having a vision of the End Game. At some stage of the business cycle, the owner(s) will reach the Fork in the Road. That is, decisions will have to be made about whether to sell, pass ownership to a younger generation of relatives or managers, or maybe just close the doors.

It takes considerable expertise to provide objective advice to business owners who are far too involved in the daily affairs of the business to make dispassionate decisions in these matters.

Qualified Plans

Once the business is successful, we highly recommend that the business adopt a qualified plan that best suits the owner and provides an attractive benefit to prospective employees. “Qualified” refers to the business’s ability to deduct the cost of the plans without it being taxable to beneficiaries.

These may include a retirement plan such as 401(k), Simple IRA, or SEP.

It may require consultation to select a group health insurance plan, or a cafeteria plan that may provide an array of benefits such as Health Savings Accounts, child care, or transportation benefits on a pre tax basis.