Entity Choice Generally

What’s the bare minimum I need to operate as an LLC?

The answer to this is similar to the answer for the same question for corporations. However, with LLCs, unless the members require it in their operating agreement, there’s no requirement for meetings and consents, unless the written consents are required by a third party, like a bank. This is the reason some folks try to use LLCs instead of corporations.

August 10th, 2015|0 Comments
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Is it ok for me to use the same entity for both businesses? It feels more efficient to put my new business into the same corporation as my other business. The businesses are similar to each other, and I can’t afford the overhead of a new entity.

Though I appreciate your need to be thrifty when it comes to starting a new business, this sort of money-saving approach is inadvisable. Occasionally a company will have a “division” or some other kind of structure that makes sense by way of keeping all things under one umbrella. For example, a hardware store may open [...]

October 30th, 2020|0 Comments
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What’s a limited partnership (LP)? When should I use one?

Limited partnerships (LP) have been the go-to entity for certain kinds of industries for years. The most prevalent use has been in real estate, where the ownership is usually made up of one person who manages the operations and the cash flow, and the rest of the partners are silent partners, or “limited partners”. Why [...]

August 6th, 2020|0 Comments
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What’s a general partnership? When should I use one?

A general partnership (GP) can come in very handy when you want to be in a joint venture or some other enterprise, and liability is either not an issue, or each “partner” has their own entity for liability protection. In fact, people who start “doing something” together can find themselves in a general partnership without [...]

August 6th, 2020|0 Comments
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Can a general partnership be taxed as an S Corporation?

In short . . . yes. Who knew?!

August 6th, 2020|0 Comments
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