Please could someone tell me what to do on the following issue:
I'm embarkin on a new business with much greater levels of uncertainty, advise me on my current personal liabilitie regarding our status as a partnership, and what would you suggest I and my partner could do to reduce our levels of personal liability
2006-11-28 03:08:48 · 6 answers · asked by lino w 1 in Business & Finance ➔ Small Business
Corportion or LLC
2006-11-28 03:17:34 · answer #1 · answered by vmblank 2 · 0⤊ 0⤋
I agree that an LLC is the way to go. I've got one myself and they are easy to set up. You can either get all of the paperwork and do the filings yourself, get a lawyer to draft Articles of Incorporation and and Operating Agreement, and get your own tax ID number. On the other hand, website services such as www.legalzoom.com can do the work for you for a great deal less than the cost of a lawyer. Their packages are pretty good and easy to understand.
Another possibility is to incorporate this new venture separately from any pre-existing businesses you have, making the current parternship that you have the sole investor. This way, you not only insulate yourself and your partner from some of the legal risks of the new venture, by compartmentalizing the new risk structure into its own business, you insulate your partnership as well. So if something does go wrong, your other business(es) won't be liable either.
2006-11-28 12:01:48 · answer #2 · answered by ajherden 3 · 0⤊ 0⤋
Go limited. Do you have an accountant?! If not get one, they will advise you on this. If you have a ltd company the company pays you a directors fee and any other money you take from the business is written to a company loan, as it is your company you never have to pay it back (as long as it continues of course) You can set your directors fees to best offset your tax allowances and deductions, which in simple terms means reducing your personal tax to nil.
2006-11-29 09:11:23 · answer #3 · answered by xoclairexo 3 · 0⤊ 0⤋
Haven't a clue - contact business link - their services are completely free.
2006-11-30 05:53:21 · answer #4 · answered by scallywag 4 · 0⤊ 0⤋
turn your business into a limmited company. limmit yourselfs to £1 share only.
see your accountant.
2006-11-28 11:25:49 · answer #5 · answered by Anonymous · 0⤊ 0⤋
So, you want to divorce yourself from your own possible failure?
2006-11-28 11:36:25 · answer #6 · answered by lulu 6 · 0⤊ 0⤋