what's difference between llc and partnership. Which one is more suitable for the high tech startup?
96896
Here's what Nolo has to say:\n\nPartnership: "a partnership is simply a business owned by two or more people that hasn't filed papers to become a corporation or a limited liability company (LLC). No paperwork needs to be filed to form a partnership -- the arrangement begins as soon as you start a business with another person"\n\nLLC: "LLCs are similar to corporations because they also provide limited personal liability for business debts and claims. But when it comes to taxes, LLCs are more like partnerships: the owners of an LLC pay taxes on their shares of the business income on their personal tax returns."\n\nI listed the link to the entire article below.\n\nHope that helps! I wish you much success & happiness in all your ventures!
512832
Yes, an LLC can be a member of another LLC.
170503
Partnerships strugle. Especially if one person isn't lifting their portion of the work. If your partner is not willing to sell or give up his portion, you can't kick him out of your partnership without first desolving the company. Additionally, the risk is shared. So if your partner screws up, you're held responsible.\n\nPartnerships can be good if both communicate and are clear on their expectations of each other. Specifying criteria in writing before creating the business partnership will help you out in the long run.
334469
Under a partnership, the income that passes through will be subject to the self employment tax, which basically, you are paying double the amount medicare and social security, one as an employee and the other as the employer. \n\nIn partnerships, you are not considered an employee of the entity. Its basically self employment income, almost like if you get a 1099 which you report the income on Schedule C. In your case, you will report this income on Schedule E page2.\n\nHope this helps!
262883
For a few reasons.  First, it adds credibility.  Second, it prevents you from being personally liable for company debts.  Third, it makes it easier to account for business income and expenses (although you do have to pay for a tax return for the LLC).  Fourth, you may save taxes by avoiding self-employment income, but only if you elect to have the LLC taxed as an S corporation.  Fifth, if you bring on a partner or sell the business later, it's a lot easier to accomplish if the business is run by an LLC.  Sixth, some of the above apply to corporations as well, but it's an LLC is much less formal and a lot easier to operate than a corporation.
324937
Pros and Cons for Incorporating\n\nAdvantages\n- Stockholders have limited liability.  \n- Corporations can raise the most investment capital. \n- Corporations have unlimited life.  \n- Ownership is easily transferable.    \n- Corporations utilize specialists.   \n\nDisadvantages\n- Corporations are taxed twice. \n- Corporations must pay capital stock tax.  \n- Starting a corporation is expensive.  \n- Corporations are closely regulated by government agencies.    \n\nLLC is not incorporation. It is a different legal structure from a corporation. The features of the LLC\n\n- Limited Liability Status. The main attraction of an LLC is its limited liability status, a feature that it shares with corporations. \n- Tax Benefits. Like sole proprietorships, partnerships, and S corporations, the business profits and losses of an LLC are taxed at individuals' income tax rates. You will avoid a corporation's double taxation, where taxes are reported at a separate business level.\n- Owners of the LLC. While owners of corporations are called stockholders, LLC owners are referred to as members. \n- Flexible Management Structure. An LLC can be run either by its members or a management group elected by the members. \n- Flexible Distribution of Profits and Losses.\n\nFor comparisons of LLCs and Corporations:\n\nLLCs vs. C Corporations http://www.powerhomebiz.com/vol97/llcs.htm\nS Corp. vs. LLC: Which Structure is Right for Your Business  http://www.powerhomebiz.com/vol136/structure.htm
763303
They are relatively similar in that company income is passed through to the owners. However, with an S-Corp an owner is expected to report a "reasonable salary" where a partnership doesn't have that requirement. \nTaxing requirements for different types:\nhttp://www.irs.gov/businesses/small/article/0,,id=98359,00.html\n\nYou will of course to talk to an accountant before you decide because states have different requirements after that. But Tax advantages and disadvantages are not the best differentiators when determining your business structure. An S-Corp offers more flexibility in the long run and other benefits on top of that. If you are wavering on the two you should look at LLC as well.
851257
Your example is just good enough. Why have an expensive startup cost. The bottom line your selling yourself and who, what , why and services you have to offer. Every company is always looking for a GREAT deal. Just start off as an proprietery company or person. Why also, open yourself to the IRS when your not making money, YET!  The greatest business FAILURE is starting up. Do like NIKE'S slogan says - Just Do It !
206812
A partnership as in business or as in living cohabitatively?\nA partnership in business may have clauses in its policy concerning this subject and they must be executed if any of the partners wishes to withdraw from the business.\nIn my opinion you may have to scan the policy statements of the partnership, and it you still have a need to withdraw you may find an article that will suit your needs within the partnership policy or discrepancies in it's 'Mission Statement (non-compliance with mission statement may suffice for legal reason to request termination of contract/partnership.' Jose
102441
Most of the time you can do a DBA and go by any name you want. As long as you do the required publication and notice you would be fine. I also think that you could leave off the LLC on signage and be perfectly ok. Check with a lawyer who specializes in that area.
398100
Go to the website of the California Secretary of State, see link below.\n\nYou can choose between the links for corporation vs. limited liability company or limited partnership.\n\nThere are several factors you should consider before selecting a corporation vs. LLC or vice versa.  Having said that, a lot of entrepreneurs are starting LLCs b/c they're overall easier to operate and the taxes flow through to you, the LLC itself doesn't pay taxes.\n\nTo start an LLC, go to the SECOND link below.  You'll find forms of articles of organization, plus filing fees.  One of the forms is LLC-1, this is the one you want.\n\nIf you're a sole proprietor and want to stay that way, you need to register your business name as a 'fictitious name'.  I believe in California you guys register those at the county level, so do a Yahoo search for your county and find their official site, and look around there for a form.  If nothing else, just call them.\n\nGood luck.
979476
It is better to form an Inc. Because if you form an LLC, your income and expenses will be reported on your personal taxes and sex sells so therefore I wouldn't form an LLC.   unless you want to pay alot of money to the government.   Take a look at www.nbcsinc.biz.  They also build business credit as well.
1090284
check this....http://www.tsha.utexas.edu/handbook/online/articles/CC/llc1.html
465114
HI.  I think you're off to a great start so far!  You'd be surprised as to how many people don't ask themselves and each other those same questions before starting a partnership/business.  What you have to do is take those questions and form a business plan that answers all of them and any more you come up with along the way.  A business plan will help you decide how you will split money, costs, responsibilities, and so much more.  I often tell people who want to start their own business that a business plan is great to have, but the best part is in creating one.  During that creation process you and your partners will "forecast" your needs and expectations which will act as a valuable guide down the line.  This way, you have your plan in writing and there is less of a chance for a "he said/ she said" type of conflict typical of a business where everyone just jumped in without anyone knowing what belongs to who or who does what.  \nTo answer your question more directly, you and your friend decide how it all works.  You can go 50-50, for example.  Or you can go 25-75 too.  It all depends on how much risk you want to both share or not share for that matter.  Obviously, if you put in 75% of the money for everyday costs, I would expect you'd want 75% of the profits.  However, it doesn't always have to be that way.  You can put in 75% (for example) of the startup costs but decide to split the profits 50-50.  Another consideration is a "buy-out" clause.  Should one of you decide that you no longer want to be part of the business, the other should have the option to buy out his or her partner.  It's all up to you and your partner.  Just make sure to put it in writing (in a contract, formal or informal), signed by all parties involved, and a couple of witnesses.  Include your full names, the dates, and your business plan.  This will not only help keep track of everyone's job descriptions, but will protect you and your partner in the long run.    \nGood luck and I wish you success!
797834
you will probably qualify as a partnership, not a Corp (Ther are certain guidelines to both).  You should talk to the small business association to get that information tho.  You are right though, it is mostly about taxes.  If you are a corporation, you are what they call, double taxed, but you are only liable as far as the business itself.  As a partnership, you are liable for everything you own.  Meaning that if someone sues you, they can take everything as a partnership, but the upside is that taxes are lower.
1088348
An LLC (Limited Liability Company) is a business entity with tax and legal benefits.  A DBA is simply a trade name.\n\nEx:  Widget Makers, LLC dba. The Red Widget Company.
216222
One of the most comprehensive FAQs on LLC I know is by Nolo.com:\n\nhttp://www.nolo.com/article.cfm/objectID/ED01121A-B4BF-498A-8BC0DBD121A0C869/111/182/245/FAQ/\n\nOther resources are:\n\nHow to form an LLC in your state (with state by state links) http://www.mycorporation.com/llc/info/index.htm\nhttp://www.bizfilings.com/learning/llcfaq.asp