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    4 Replies Latest reply on Oct 22, 2012 11:12 AM by cobase

    LLC & Partnership questions

    rizzy07 Newbie
      What questions should I be taking into consideration while trying to decide between an LLC or partnership for my new small computer sales/repair business(co-ownership between two individuals)?
        • Re: LLC & Partnership questions
          LUCKIEST Guide
          LLC & Partnership questions

          Talk to an Accountant or talk to a SCORE Counselor.

          Good luck
          • Re: LLC & Partnership questions
            Bridge Navigator
            An accountant can review tax consequences with you and an attorney can review legal implications with you. You will need to put the two pieces together and decide which is best for your situtaion.

            Every state has different requirements for LLCs.

            In my opinion, you are probbaly better off as an LLC or S corp. rather than a partnership. The LLC or S corp. should limit your personal liability more than a partnership.

            For tax purposes, if you choose an LLC, the IRS will tax you as a partnership unless you make an election to be taxed as a corporation - and then chose to be taxed as a S corp. (many posts on tis already).
            • Re: LLC & Partnership questions
              bill7744 Adventurer

              Do a C corp.  I started as a sole proprietor naively saying - If I make a mistake, I will fix it.  I will be reasponsible - bad job I will not bill.  BUT !!! after 5-6 major clients (about $21,000 each) declared bankruptcy I almost lost my house and wife.  Protect yourself - you may not do wrong but customers could.  So previous suggestion - talk to attorney and accountant is good.

              • Re: LLC & Partnership questions
                cobase Adventurer

                I had given some great information (for a site other than my own - LegalZoom), but seems that the moderators are more interested in keeping traffic on this site than on being helpful to small businesses.

                 

                Best of luck -- look into LegalZoom (sorry can't provide the link due to moderators)