Business Advisory & M&A Support

    Tax Structure & Entity Planning in Manassas, VA

    How your business is structured directly impacts your tax bill—every year, and especially when you buy, sell, or restructure. The difference between the right structure and the wrong one can be tens of thousands of dollars.

    We help business owners across Northern Virginia and the DC area evaluate their entity structure, optimize owner compensation, and plan transactions with tax efficiency in mind. Whether you're weighing LLC vs. S-Corp, preparing for an acquisition, or cleaning up a messy multi-entity situation, we bring clarity and actionable recommendations.

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    What This Service Covers

    Entity planning isn't just about picking a structure—it's about aligning your legal form, tax elections, owner compensation, and operational needs into a coherent strategy.

    LLC vs. S-Corp election analysis and optimization
    Owner compensation and reasonable salary planning
    Multi-entity structure review and consolidation
    State tax nexus and multi-state considerations
    Transaction tax impact modeling (asset vs. stock sale)
    Partnership and operating agreement tax provisions
    Entity conversion planning and implementation support
    Holding company and subsidiary structure optimization

    Note: We provide financial and tax planning support for entity structure decisions. For legal filings—such as articles of incorporation, operating agreements, or state registrations—we coordinate with your legal counsel or can refer you to business attorneys in the Manassas and DC area.

    Who This Is For

    Entity planning is most valuable at inflection points—when something is changing or when you realize your current setup isn't working.

    Business Owners Outgrowing Their Structure

    Your LLC worked when you started, but now you're paying more in self-employment taxes than necessary

    Buyers Planning an Acquisition

    You need to structure a deal properly before you close—asset purchase, stock purchase, or something hybrid

    Sellers Preparing for Exit

    Your entity structure affects your tax bill on the sale; get it right before you list

    Partners Adding or Removing Owners

    Ownership changes trigger tax events; proper planning minimizes the hit

    Growing Businesses Expanding to New States

    Multi-state operations create nexus issues and require careful entity planning

    Complex Situations Needing Clarity

    Multiple entities, real estate holdings, or messy structures that need to be cleaned up

    The Most Common Problems We Fix

    These issues cost business owners real money—and they're often fixable with proper planning.

    Paying too much in self-employment tax because you never elected S-Corp status
    S-Corp owner salary set incorrectly—too low (IRS risk) or too high (wasted payroll taxes)
    Entity structure that made sense 10 years ago but no longer fits the business
    Multiple entities with no clear purpose, creating administrative burden and confusion
    Acquisition structured without considering tax implications until it was too late
    Multi-state operations without proper entity planning, creating audit exposure
    Partnership agreements that don't address key tax provisions (allocations, distributions, exits)

    How Entity Planning Connects to Your Books

    Your entity structure affects everything in your financial operations—how you record transactions, how you pay yourself, how you file taxes, and how you report to lenders or buyers.

    When we help with entity planning, we also ensure your bookkeeping reflects the new structure properly. Clean books make entity decisions easier to model and implement.

    Entity Planning for Buyers (Acquisitions & Integrations)

    If you're acquiring a business, entity structure decisions affect your deal in multiple ways: how the purchase is taxed, how you integrate operations, and how you set up ongoing financial management.

    We work with buyers throughout the Northern Virginia and DC area to structure acquisitions properly—before you close—and then help integrate the acquired business into your operations.

    Our Approach (3 Simple Steps)

    We don't just tell you what to do—we show you the numbers and help you execute.

    1

    Discovery & Analysis

    We review your current structure, financial situation, and goals. For transactions, we analyze both sides of the deal to understand tax implications.

    2

    Modeling & Recommendations

    We model different scenarios—showing you the tax impact of each option—and recommend a path forward with clear reasoning.

    3

    Implementation Support

    We help you execute the plan, coordinating with legal counsel for filings and updating your books and payroll to reflect the new structure.

    FAQs — Tax Structure & Entity Planning

    Common questions from business owners in Manassas, Northern Virginia, and the DC area.

    QWhat's the difference between an LLC and an S-Corp for tax purposes?

    An LLC is a legal structure, while S-Corp is a tax election. Many businesses operate as an LLC but elect S-Corp taxation to reduce self-employment taxes. The right choice depends on your income level, owner compensation needs, and long-term plans. We analyze your specific situation to recommend the optimal structure.

    QWhen should I consider restructuring my business entity?

    Consider restructuring when you're buying or selling a business, your income has grown significantly, you're adding partners or investors, you're expanding to new states, or your current structure no longer optimizes your tax position. We help you evaluate whether the benefits outweigh the costs and complexity of restructuring.

    QWhat is 'reasonable compensation' and why does it matter for S-Corps?

    Reasonable compensation is the salary an S-Corp owner-employee must pay themselves before taking distributions. The IRS requires this to be comparable to what you'd pay someone else to do your job. Setting it too low triggers IRS scrutiny; setting it too high means unnecessary payroll taxes. We help you find the right balance.

    QDo you handle the legal filings for entity changes?

    We provide financial and tax planning support for entity structure decisions. For legal filings—such as articles of incorporation, operating agreements, or state registrations—we coordinate with your legal counsel or can refer you to business attorneys in the Northern Virginia and DC area who specialize in these matters.

    QHow does entity structure affect M&A transactions?

    Entity structure impacts whether a transaction is treated as an asset sale or stock sale, affecting tax liability for both buyer and seller. It also affects how liabilities transfer, how earnouts are taxed, and what happens to existing tax attributes. We help structure deals to optimize tax outcomes for your side of the transaction.

    QCan you help with multi-entity structures?

    Yes. We regularly work with business owners who have multiple entities—holding companies, operating entities, real estate LLCs, and more. We help optimize the overall structure for tax efficiency, liability protection, administrative simplicity, and operational clarity.

    QHow long does entity planning typically take?

    Initial analysis and recommendations typically take 2-4 weeks depending on complexity. Implementation timelines vary based on whether legal filings are needed, state requirements, and coordination with other advisors. For M&A transactions, we work on your deal timeline.

    Ready to Optimize Your Business Structure?

    Whether you're evaluating LLC vs. S-Corp, planning an acquisition, or cleaning up a complex multi-entity situation, let's discuss your options. We serve business owners throughout Manassas, Northern Virginia, and the greater DC area.

    Book a Free Advisory Call
    Hollins & Hur logo

    Small business accountants in Manassas, VA serving Manassas, Gainesville, Haymarket, and small businesses across Northern Virginia & Washington DC. We provide bookkeeping, tax preparation, tax planning, and advisory support so businesses can grow with confidence.

    Phone: (571) 222-4765

    Email: sales@hollinsandhur.com

    Gainesville • Haymarket • Manassas

    8506 Wellington Road, Suite 201

    Manassas, VA 20109

    © 2026 Hollins & Hur. All rights reserved.

    Hollins and Hur is the brand name under which Hollins and Hur Accounting and Tax and Nautilus Financials LLC and its subsidiary entities provide professional services. Hollins and Hur Accounting and Tax and Nautilus Financials LLC and its subsidiary entities practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations and professional standards. Hollins and Hur Accounting and Tax is a licensed independent CPA firm that provides attest services to its clients. Nautilus Financials LLC and its subsidiary entities, which are not licensed CPA firms, provide tax, advisory and other non-attest services to its clients. The entities falling under the Hollins and Hur brand are independently owned and are not liable for the services provided by any other entity providing the services under the Hollins and Hur brand. Our use of the terms "our firm" and "we" and "us" and terms of similar import, denote the alternative practice structure conducted by Hollins and Hur Accounting and Tax and Nautilus Financials LLC and its subsidiary entities.