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Old 11-09-2003, 02:02 AM
TOGLE2005 TOGLE2005 is offline
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partnership, llc or corp.

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
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Old 11-09-2003, 01:31 PM
Let it Grow Let it Grow is offline
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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.
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Old 11-09-2003, 04:29 PM
Green in Idaho Green in Idaho is offline
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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.
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Old 11-09-2003, 04:33 PM
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DUSTYCEDAR DUSTYCEDAR is offline
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keep it as one owner there is always a slacker in a partnership and that is what messes it up
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Old 11-09-2003, 06:29 PM
Let it Grow Let it Grow is offline
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Green in Idaho...you are right on!
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Old 11-09-2003, 09:26 PM
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Team Gopher Team Gopher is offline
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Hi TOGLE2005,

Here are a few posts that may be helpful.

sole Proprietorship, LCC or S-Corp

going to swithc over to LLC

LLC or DBA?
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  #7  
Old 11-10-2003, 09:05 AM
TOGLE2005 TOGLE2005 is offline
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Thanks for all the info. I see that we have a lot to talk about, and a lot to learn.
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  #8  
Old 11-10-2003, 08:17 PM
Port City Lawncare Port City Lawncare is offline
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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!
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  #9  
Old 11-10-2003, 11:39 PM
newleaflandscape newleaflandscape is offline
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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.
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Old 11-11-2003, 12:16 AM
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leadarrows leadarrows is offline
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Here is a thread about this,
http://www.lawnsite.com/showthread.p...threadid=39134
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