How should i set up an LLC for my business??

5 Replies

It's just myself, no other partners for now, so is it best to have more than one person to form a partnership or does it really matter? Is there any advantages of having a partnership?

This is a question for an attorney in the state of North Carolina. There are a lot of facts that determine what is the best style of business. Largely speaking, it depends on a combination of;

A) A person's risk aversion.

B) A person's business plan.

C) What kind of assets that person has.

A number of other factors. Bring your business plan to a local Business Attorney and discuss the pros and cons of the various business strategies that are available in your state. No one other than a local, licensed attorney is going to have access to all the unique options available based on the unique factors of your case.

As to a partner......well, sometimes they are necessary, sometimes you get stuck with someone you'd rather not be, most don't work out as planned either. 

I agree with Mathew as to seeing an attorney, you could also get the pros and cons from a financial point of view from a CPA as well as tax advantages. 

Sounds to me like you are just staring off. Best thing is to get a basic business education! Business 101, many high schools offer a business course and you can get a hold of a text book and start reading.

There are several non-profit organizations that assist business owners, check with your local BBB, Chamber of Commerce, SBA, and folks at the library usually know who offers free courses. 

Knowing something walking into an attorney's or CPA's office is really needed for several reasons; they may not have the time to go over very basic information or want to charge you for expertise at an elementary level, you'll have better questions to ask, you'll know what a business plan is instead of walking in without a clue, at least present yourself as someone they would be willing to work with.

Asking if you need a partner is a shot in the dark, what's your plan, if you're developing a shopping center and you have no experience, absolutely you need assistance, if you're dealing with a tired, motivated landlord trying to sell a $60,000 house, probably not, but you do need an education in the basics of real estate before jumping in!

Educate yourself and that is not going to be with gurus or your peers! Good luck :)  

Hi @Ty Murray . A partnership by definition is more than one person, so if it's just you, by definition you cannot have one.

I think your question is whether to form and operate a legal business entity, such as an LLC or corporation. The primary benefit of an LLC or a corporation is limited liability. This means that if a person gets sued, generally (subject to state law and exceptions), the claimant can only go after the assets of the business, and not your personal assets. However, most state have case or statutory law that provides claims to "piece the corporate veil" and try to go after ones personal assets to satisfy the claim, if certain corporate formalities are not maintained.

Speak to an attorney in your state to determine whether it makes sense for your form a legal entity and what type of entity to form.

Hope this provides some insight.

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