What is better a General Partnership or Corporation in Florida?

Question

I'm trying to start up a photography business with my partner and I would like to know what type of business is best in Florida for just two people. Which has the best tax benefits and such. And if I move do I have to change anything?

Answer 1

Jeffman is right. NEVER form a partnership. If an expert tells you otherwise, they are NOT an expert! Do an LLC or s-corporation. Check with a local accountant to see which is best for your particular situation.

Answer 2

A general partnership is the VERY WORST type of business entity you can have. You'll understand why, when you ask yourself the question of what happens if the business fails (never mind that you expect it to be a great success), and more on that in a minute. However, the corporation also gives you more tax advantage possibility than a partnership.

As a side note (since you didn't ask), you might find it more useful and easier to set up a Limited Liability Company, rather than a corporation.

If a company fails, the question is what happens with the debts of that company. In a corporation, unless you sign a personal guarantee, you have no personal liability for the debts.

If you're a partner in a general partnership, not only are you liable for all the debts of the partnership that you incurred, you're also responsible for all the debts of the partnership that your partner incurred, WHETHER YOU APPROVED OR KNEW ABOUT THE DEBT OR NOT. As you can tell from the screaming capital letters, that's fairly important.

hope that helps.
j