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LLC & Partnerships questions

by HeXploiT / March 20, 2008 5:02 AM PDT

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)?

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Re: LLC and partnership
by Kees Bakker / March 20, 2008 7:49 AM PDT

Although there is a lot of information on the internet I should advice to get juridical advice. You'll need a lawyer anyway for the formalities, whichever or the two you choose, and a good one surely will be able to explain the pro's and con's and how they apply to your particular situation. If he can't, he surely isn't the right one to make up the contract for you.

Your accountant or financial adviser should be able to help also. Or are you planning to do your own bookkeeping? Same criterium: if he can't explain why a certain choice is best for you, he's not the right one.

Two links I liked from http://www.google.com/search?hl=en&q=LLC+partnership:
http://www.allbusiness.com/business-planning/business-structures-limited-liability/1679-1.html
http://www.powerhomebiz.com/vol3/legalstructure.htm

The top links from http://www.google.com/search?q=start+your+own+business are indispensible. Like:
http://www.sba.gov/smallbusinessplanner/index.html
http://www.myownbusiness.org/

Hope this helps.


Kees

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LLC & Partnership
by hathawayberkshire / March 21, 2008 5:18 AM PDT

As an attorney, I would first suggest that you research your local state's laws. Clearly, it really depends on what you want to accomplish with the small computer business. Sounds like it will be owned by more than just you. A LLC, from a tax standpoint, will pass through to you as to tax liability. You will want to engage an accountant, if not already done so. You can find out more information from www.sba.gov as to small business issues. You also should call your local/state bar association. In most states, there is free legal help by dialing a toll-free number. It is part of our requirements as attorney for community service. Thus, you can speak with an attorney in your state and go through your situation live.

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those two can be the same
by THE COMPUTER HEALER / March 25, 2008 3:16 AM PDT

hello, i have a computer service company also. i started my company as a llc but switched 2 years later because once i started carrying merchandise i started getting taxed like a retail store.

this following statement is from my accountant:
a partnership can be two different tax types. for example, an llc and another llc or an llc and a sole prop. although, you can start your company as a general partnership you can't parner with another partnership unless one of the companies change to a corporation, llc or sole prop. also as a general partner only you are not issued a tax id until you partner with a company that has one.
a partnerships tax implications are as the status of the majority partner. ie., if you partner with an llc your taxed as an llc if it has 50% or more stake in the partnership.
a llc tax inplications involves a state vision of the company
some states see llc's as individuals and some as a corparation.
none of the 50 states see an llc as its own entity.
i hate to draw this out more than what your looking for....
go to my website and contact me if you have anymore questions.
http://www.mycomputerhealer.com

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