Expanded QSBS benefits, simpler reporting, and broader investor access are making C corporations a compelling alternative to traditional pass-trough structures.

As private equity limited partner bases grow increasingly complex and diverse, sponsors are rethinking one of the fundamental building blocks of deal structuring: the tax status of their investments. At the portfolio company level, partnerships and LLCs have often been preferred because the offer a single layer of taxes, maximum flexibility in governance, and the ability to flow losses and deductions directly to investors. But as the market evolves and tax and regulatory environments shift, sponsors are revisiting the advantages of a C corporation structure for portfolio companies. 

Click here to read the full article starting on p. 42 written by Chase Stuart, Samuel Raboy, and Brian Schultz published in Mergers & Acquisitions.