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.
