Will Your Business Structure Still Serve You in 2026?
Let me ask you something: When was the last time you actually revisited your business structure?
If you can’t remember, if you set it up ages ago and haven’t really thought about it since, that’s fine, but guess what: You should revisit this topic. Imagine if you your business entity you set up in 2017 is actually hurting your bottom line today.
When you first launched, your structure probably made sense. But if your business has grown it’s worth asking: Is that same structure still aligned with where you are and where you’re headed?
It’s not just paperwork. It’s the foundation of how your business is taxed, how profits flow, how protected you are legally, and how flexible you can be with things like retirement planning, partnerships, or raising capital. It’s a strategic decision that many business owners rarely think about.
Maybe you started with a single-member LLC because it was simple. Or your CPA suggested an S-corp to save on self-employment taxes. That might’ve been the right move back then.
But now what if you business is double the size in six years, you have hired more than 20 more employees or what if you now offer your products and services in other states even other countries? You’re thinking about investors, equity, or even an exit. What used to work might now be holding you back.
There’s no alert that pops up when your structure becomes inefficient. And most accounting firms are hyper focused on if you are in compliance with the IRS, filing returns, and staying on course with current tax laws and codes. Consider these “what if” scenarios in your business.
- Your tax bill is creeping up, and a solid business strategy and advisor who cares could make a difference.
- You’re expanding into new states and even countries and this complexity may have some hurdles you are not sure how to leap over.
- You’re adding partners or offering equity and could benefit from understanding how to protect everyone.
- You’re planning for a sale, exit, or outside investment and you’re not sure if you will look attractive to prospective buyers with your current business entity status.
As you as you can see, declaring your business structure if very important and can save you money and headaches down the road. If you have questions, are uncertain where you stand, and just need trusted advice, solidCore CFO is here to help.
