If you’ve ever wondered which legal structure makes the most sense for your agency, then you’ll want to read this article from the September 2019 issue of IA Magazine. Writer Jacquelyn Connelly explains each structure, and when it might be time to consider a change.
What's Your Structure?
By Jacquelyn Connelly
In 2017, 81% of independent agencies were organized as pass-through entities, including sole proprietorships, partnerships, LLCs and S-corps, while 19% were organized as C-corps, according to the 2018 Future One Agency Universe Study (AUS).
Those numbers didn’t budge over the previous two years, and they’re approximately consistent with 2018 Best Practices data, says Brian McNeely, partner at Reagan Consulting. Among firms between $10-25 million, for example, 16.2% are C-corps, 59.5% are S-corps and the remainder are organized as another type of pass-through or use multiple structures.
Read the full article