I WANTED TO START A BUSINESS IN FLORIDA PARTNERING WITH SOMEONE ELSE. WE WANTED THE BUSINESS TO BE ITS SEPARATE ENTITY WITH ITS OWN FEDERAL ID # ETC. HOWEVER AS A SMALL BUSINESS WHICH WOULD BE THE BEST OPTION FOR FORMING THIS COMPANY?...GENERAL PARTNERSHIP, LLC, OR CORPORATION?
Real Estate Attorney
There are three basic forms of business types which you should consider: a corporation, a limited liability company (LLC) or a limited liability partnership (LLP). The type of business organization that is best for you depends on the type of business you want to conduct, the number and types of other people who will be going into business with you, your tax situation, and the level of record keeping that you are comfortable with. You should consult an experienced business lawyer in your area to discuss the pros and cons of each of the business organizational types.
Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. Actual legal advice can only be provided after completing a comprehensive consultation in which all of the relevant facts are discussed and reviewed.
There are many resources you can use to find the answers you will need along the path to getting you business off the ground. Fortunately, SBA (US Small Business Administration) has revamped its website and it is very user friendly, with quite a bit of useful information for you,. Here is a link to part of their website that deals with Steps to starting a business.
There is a link on that page to determine the legal structure of your business. You should also consult a CPA for advice on tax implications and a Business lawyer in FL regarding liability exposure, etc.
I think you will find the SBA site is very useful and it will probably even address matters you may not have considered.
Good luck with your new venture.
The answer provided here does not constitute legal advice and should not be relied on as such. The attorney's response to your question is only offered for informational and educational purposes. No attorney-client relationship has been created. This attorney is licensed to practice in the state of NY only. For real legal advice, a licensed attorney with jurisdiction in your state should be consulted.
The prior attorney offer sound advice. Remember that you also need to consider the tax implciations of the entity you choose. For example, in some cases an S corporation may yield tax savings not available from LLCs or partnerships. Also, remember the general partnerships should not be used if there is any chance of the business liabilities, lawsuits, personal injuries, ultra-hazardous activities, etc. Finally, be very careful with a business partner, since disputes arise all the time and out of nowhere. If you can avoid a business partner you are always better off. If you must then you also need to enter into a shareholders agreement to cover a break up, or death, disability or retirement or separation of service, etc. In any event, you need to meet with a business attorney or a tax attorney with business experience to explore your factual situation to come up with the best entity for you.
Hope this helps. If you think this post was helpful, please check the thumbs up (helpful) tab below and/or designate my answer as best answer. Thanks.
Mr. Fromm is licensed to practice law in PA with offices in Philadelphia and Montgomery Counties. He is uuthorized to handle IRS matters throughout the United States.His phone number is 215-735-2336 or his email address is firstname.lastname@example.org , his website is www.sjfpc.com. and his blog is
Mr. Fromm is ethically required to state that the response herein is not legal advice and does not create an attorney/ client relationship. Also, there are no recognized legal specialties under Pennsylvania law. Any references to a trust, estate or tax lawyer refer only to the fact that Mr. Fromm limits his practice to these areas of the law. These responses are only in the form of legal education and are intended to only provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply or make such reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received.
By using this site you understand and agree that there is no attorney client relationship or confidentiality between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed attorney that practices in the subject area in your jurisdiction, who is familiar with your specific facts and all of the circumstances and with whom you have an attorney client relationship. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question or omitted from the question.
Circular 230 Disclaimer - Any information in this comment may not be used to eliminate or reduce penalties by the IRS or any other governmental agency.
website is www.sjfpc.com.