Staffing & Structure Strategy
Integrated Entity Planning for Employment, Liability, and Tax Efficiency
Why the Way You Employ People Matters
Many business owners reach a point where they ask, “Should I hire employees directly, or place them in a separate company?” The answer isn’t just about payroll – it’s about liability, tax exposure, regulatory compliance, and long-term strategy.
At Sollertis, we design employment and operational structures that allow clients to grow confidently while staying in control. Whether you’re transitioning away from a professional employer organization (PEO), housing employees in a new entity, or managing multiple business lines, we help you do it legally, strategically, and efficiently.
Avoiding the Hidden Pitfalls of Multi-Entity Structures
For many clients, creating a separate entity to house employees opens the door to custom retirement planning for owners and executives – plans that are more robust or flexible than those offered to rank-and-file employees. But separating the structure isn’t enough on its own.
If related entities share common ownership, management, or services, the IRS may treat them as a single employer — eliminating the very benefits the structure was intended to achieve.
The rules governing this are technical, and frequently misunderstood. They include:
- Controlled Group Rules under Internal Revenue Code §§ 414(b) and 414(c)
- Affiliated Service Group Rules under IRC § 414(m)
- Employee Leasing Rules under IRC § 414(n)
- Attribution Rules under IRC §§ 267, 318, and 1563
- Economic Substance Doctrine under IRC § 7701(o)
The consequences of getting it wrong can include:
- Unified retirement plan requirements across all employees, even in separate businesses
- Collapsing of multiple companies into one “employer” for tax, benefit, or liability purposes
- IRS challenges to intercompany payments or deductions
- Triggered ERISA, COBRA, and ACA compliance obligations
- Loss of any intended asset protection advantages
How Sollertis Helps
We bring together tax, legal, and operational disciplines to design structures that work in the real world — not just on paper. Our process includes:
- Risk & Exposure Analysis: Review existing entity and staffing arrangements
- Structure Design: Propose new or revised entity groupings based on legal, tax, and operational considerations
- Regulatory Navigation: Avoid controlled group treatment and affiliated service rules where appropriate
- Governance Framework: Draft or revise operating agreements, management services agreements, and HR policies to align with structural intent
- CPA & Advisor Coordination: Collaborate with your existing professionals to ensure clean implementation and ongoing compliance
Who This Strategy Is For
- Business owners shifting employees out of a PEO or lifestyle management company
- Families operating multiple businesses under shared ownership
- Companies hiring across multiple jurisdictions or entity types
- Clients planning for long-term succession or intergenerational management
- Real estate and investment firms with centralized staffing or back-office support
- Owners seeking to implement customized retirement plans separate from employee offerings
Why Clients Trust Sollertis
- Substance + Structure: We go beyond entity formation — we build operating systems that will withstand scrutiny.
- Integrated Perspective: Tax, legal, HR, and business strategy all considered together.
- Collaborative Implementation: We coordinate across advisors and stakeholders to streamline execution and avoid roadblocks.
- Defensive Documentation: Every piece of the structure is designed with future IRS, DOL, and plaintiff scrutiny in mind.
Structure with Confidence. Grow with Clarity.
A well-designed staffing and entity structure is one of the most powerful — and misunderstood — tools in business planning. We help you use it wisely.
Need Help Structuring Your Operations?
Let’s talk. Whether you’re aiming for liability protection, tax efficiency, or long-term growth, we’ll help you design a strategy that works across the board.
And because these projects often uncover bigger-picture planning opportunities, we’ll also look for ways to better align your tax and asset protection strategies – helping you move forward with a structure that’s not just functional, but fully integrated.
Get the Sollertis Summary
If you want timely asset protection news and practical ways to safeguard your wealth, submit your email address to receive a weekly email from Chief Counsel and Sollertis Founder.
