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TOGLE2005
11-09-2003, 02:02 AM
I am trying to find out the best entity for our business. I here a lot of bad things about partnerships. So I was wondering what people think of llc and S or C corporations. This is going to be our first year in business and we are trying to cover all of the beginning steps. The business will be conducted with me and a friend, our situation's are pretty much the same as far as life style. We are both married buying homes and have children. We are very eager to learn how to go about protecting the few personal assets that we have.

Todd

Let it Grow
11-09-2003, 01:31 PM
I'd go with LLC or S Corp. I'd stay away from a partnership, especially with a friend. I almost went into partnership with a friend this summer, but instead I decided to go with Sole Proprietor, and hire him as an employee...and I'm glad I did it that way. It wouldn't have worked if we were in a partnership.
...Just my opinion.

Green in Idaho
11-09-2003, 04:29 PM
It is NOT the partnership FORM of entity people frown on, it is going into business with other people- most commonly with friends and family that advisors frown on. THAT is dangerous ice!

So whether you use a partnership form, LLC, or an S-Corp you are still skating on thin ice.

As advised before, you two may want to consider each doing your own businesses (two separate single-owner LLC/S-corp) and then using each others synergy to grow each business. One do mowing, one do fert/pest for example.

There is such a thing as a Joint Venture- Two business combine under one name to accompish one goal. You have Todd's Mow he has Joe' Spray and together you market a combined business as Town's Lawn Care and at the same time each is free to market their own biz too. It does create some other issues but it also highlights the issues of two or more people forming any biz.
BUT then when things go sour, you each still have your biz.

Do a search on here for "friend and partnership" you will see why it's advised against.

On the other hand formal business partnerships CAN be great to pool resources and it is becoming more and more popular in large businesses, like AOL and Compaq. But for inexperienced business owners with minimal capital and where the benefits are difficult to measure.... that's another matter.

DUSTYCEDAR
11-09-2003, 04:33 PM
keep it as one owner there is always a slacker in a partnership and that is what messes it up

Let it Grow
11-09-2003, 06:29 PM
Green in Idaho...you are right on!

Team Gopher
11-09-2003, 09:26 PM
Hi TOGLE2005,

Here are a few posts that may be helpful.

sole Proprietorship, LCC or S-Corp (http://server2.lawnsite.com/showthread.php?s=&threadid=53657)

going to swithc over to LLC (http://server2.lawnsite.com/showthread.php?s=&threadid=50869)

LLC or DBA? (http://server2.lawnsite.com/showthread.php?s=&threadid=46927)

TOGLE2005
11-10-2003, 09:05 AM
Thanks for all the info. I see that we have a lot to talk about, and a lot to learn.

Port City Lawncare
11-10-2003, 08:17 PM
Stay away from partnerships. I'm splitting one right now and it's going to cost me twice as much to stay in business as it did to get started alone. Trust me on this, stay away from partnerships, especially if you're the one with all the know how!

newleaflandscape
11-10-2003, 11:39 PM
I think 90 percent of businesses fail in the first three years. And 99 percent of buinesses in partnerships fail in the first three. I honestly can only think of one company that made it ok with a partnership kind of. Not really a partnership though. They worked together at the same company and decided to leave and build their own. The reason it worked is because one of them started a business and the other one subcontracted for his business. I think that is a great way of doin it. Cause they both have to earn there money on how much work gets done, Neither can survive without the other and they both know that.

leadarrows
11-11-2003, 12:16 AM
Here is a thread about this,
http://www.lawnsite.com/showthread.php?s=&threadid=39134