I am starting a car rental business as of right now there are no employees but I am unsure as to if it should be an LLC or INC. There are a total of 4 partners including myself.
Contracts / Agreements Lawyer
I suggest you sit down and show your business plan to an attorney. There are many factors to consider between a corporation and an LLC. They each have pros and cons. The issues include how to set one up, how to make an operating agreement, taxes, etc. It can get complicated depending on your goals.
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You should also consult an accountant, as each of those entities have different tax implications. You should be fully informed as to the benefits and disadvantages to each type of entity.
DISCLAIMER: Brandy A. Peeples is licensed to practice law in the State of Maryland. This answer is being provided for informational purposes only and the laws of your jurisdiction may differ. This answer based on general legal principles and is not intended for the purpose of providing specific legal advice or opinions. Under no circumstances does this answer constitute the establishment of an attorney-client relationship. For legal advice relating to your specific situation, I strongly urge you to consult with an attorney in your area. NO COMMUNICATIONS WITH ME ARE TO BE CONSTRUED AS ARISING FROM AN ATTORNEY-CLIENT RELATIONSHIP AND NO ATTORNEY-CLIENT RELATIONSHIP WILL BE ESTABLISHED WITH ME UNLESS I HAVE EXPRESSLY AGREED TO UNDERTAKE YOUR REPRESENTATION, WHICH INCLUDES THE EXECUTION OF A WRITTEN AGREEMENT OF RETAINER.
Personal Injury Lawyer
It seems as if your question is more about accounting questioning, rather than a legal question. You should have an accountant. If you are starting a new business and ask him how your business would benefit, whether being an LLC or a Corporation.if you have no issues with your partners and it is only an accounting issue, you are much better off speaking with your account.
Attorney answers to questions are for general purposes only and do not establish an attorney-client relationship. There are always specific facts that are important for an attorney to review before providing advice to a Client. In no way should you rely on the response provided herein to conduct your legal affairs on your own. You should always hire an attorney before you rely on advice provided.
Land Use / Zoning Attorney
The decision whether to form and LLC or a corporation is based on many factors too numerous to explain in an answer here. I agree that you should consult a lawyer. While you CAN form an entity online or by yourself, just forming the entity is only the first step in starting a business. Regardless of the form you choose, you will want an operating agreement among the members (if you form an LLC) or a stockholder's agreement (if you form a corporation). I also agree that you should find a good accountant who specializes in small businesses.
Elder Law Attorney
Maryland has some great information on the State Department of Assessment and Taxation website for tax issues regarding formation of each type of business entity. Also see the link below regarding entity formation in Maryland. Further, check the SBA - see link below. You may want to see an attorney after you choose and then the attorney can advise you and help you set up and file the paperwork. Good luck!
The answers posted are for informational purposes only and not for the purpose of providing legal advice. You should contact an attorney in your jurisdiction to obtain advice with respect to any particular issue or problem.