M&A Insights
My name is Madhur Duggar and I work in the M&A space for the Software and IT Service companies and this is my podcast series M&A Insights. If you are interested in having a conversation around the strategic direction of your firm, are looking to grow your book and want some marketing and business development help or are an investor looking to make an acquisition in this space, write to me at podcastwithmadhur@gmail.com or reach out to me on Linkedin at www.linkedin.com/in/madhur-duggar.
M&A Insights
Sole Prop, S-Corp, or C-Corp? Demystifying Early Tax Strategy for Founders - With Dave Wanis, Partner at Weaver
Madhur@excendio.com | 212.731.4230 | Book an Appointment Here (34) Madhur Duggar | LinkedIn
M&A Insights New Podcast Episode Drop!
đź’ˇ 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.
đź’ˇ 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 Services
Reach out to Madhur at Madhur@excendio.com or 212.731.4230
Book an Appointment with him on his LinkedIn at (34) Madhur Duggar | LinkedIn
Check out Excendio Advisors and our amazing content at www.excendio.com
Reach out to Dave Wanis on his LinkedIn at (39) Dave Wanis | LinkedIn
www.linkedin.com/in/madhur-duggar