Asked about 2 years ago - Orlando, FLFlag
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?
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.
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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.
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