I am located in CA and my friend located in Boston,MA. We are thinking of setting up a small business which will primarily provide services to customer in both state. What is the cheapest way we can set up a legal entity. For forming a LLC we both have to pay filiing and taxes in both state which we want to avoid. I am thinking about setting up a partnership but do not know what is the process and legal requirement for that and are there any drawback apart from not having limited liablity.Can somebody help us in this regard.
2006-11-13 19:03:45 · 3 answers · asked by comfort 1 in Business & Finance ➔ Small Business
Try using a nevada corp or a delaware corp
2006-11-13 19:13:23 · answer #1 · answered by sickand tired 3 · 0⤊ 0⤋
The best thing to do is to consult a lawyer who is familiar with the laws of both states. They can help you set up a partnership. I tried to do it myself and got into problems with an unscrupulous partner. No doubt, if you ask people you know, they will tell you lots of stories about how they got screwed by partners. So it is best to set up the rules very clearly and get legal advice about the ways you can avoid becoming liable for your partner's mistakes. You can find lawyers who will work on a sliding scale if you do not have a lot of money. But the investment can save you a lot of headaches down the road.
Good luck with your venture.
2006-11-13 19:17:38 · answer #2 · answered by SympatheticEar 4 · 0⤊ 0⤋
Use a Nevada corp.
2006-11-13 19:16:30 · answer #3 · answered by bradship4u 3 · 0⤊ 0⤋