Start up information required

Discussion in 'Business Operations' started by RyGuyusMaximus, Jan 4, 2008.

  1. RyGuyusMaximus

    RyGuyusMaximus LawnSite Member
    Posts: 88

    I'm forming my business as we speak. My two friends and I are the sole financiers of the operation and i need advice as to the legal side as it pertains to multiple owners?

    Also which entity should we operate as? (I heard that a General partnership is the best route)

    Thanks in advance.
     
  2. Goodaaron

    Goodaaron LawnSite Member
    from KY
    Posts: 16

    I think you should check out a LLP or Limited Liability Partnership. To many business ventures started as partnerships end up badly and an LLP insulates you and your assets about as well as you could hope for. Check out the Legalzoom banner towards the bottom of the page in the sponsors box on the right. They should be able to help you and save you some cash. I endorse them 100%.:)

    A limited liability partnership, or LLP, is a relatively new creation. It operates much like a limited partnership, but gives each member of the LLP an equal voice in managing the business. It also protects members from personal liability, except to the extent of their investment in the LLP.

    Generally, partners in a limited liability partnership aren’t responsible for another partner’s debts, obligations, or liabilities resulting from negligence, malpractice or misconduct.

    Partners are liable for debts and obligations created as a result of their own negligence, malpractice or misconduct, as well as those of any person under their direct supervision. :)
     
  3. RyGuyusMaximus

    RyGuyusMaximus LawnSite Member
    Posts: 88

    Ok thankyou. Great idea.
     
  4. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Posts: 2,128

    I am sure that a lot of good advice could be found here from knowledgeable people, but I would suggest that after getting some advice here, you take that advice and the new questions that may arise from that advice and sit down with an attorney or a CPA for a while and pick their brain about the matter. I am sure alot of guys here can steer you in a good direction, as can I, but in the end, you will probably feel alot better after consulting with someone who makes this sort of thing their business.
     
  5. RyGuyusMaximus

    RyGuyusMaximus LawnSite Member
    Posts: 88

    Yes I know a cpa for hire. And hes already given me some advice. But we dont have 800 to spend on a lawyer. I wish we did but at this point we dont. It is however priority one when some posistive cash flow occurs.
     
  6. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Posts: 2,128

    That's a good thing to plan on and good advice for people to take. Even if you don't have the money for a consultation now, after the business gets going, you should still consult. "Cover Your Asses" is always good advice to take. Make sure as many t's are crossed and I's are dotted as you can think of and then work your butts off to make sure they stay crossed and dotted.
     
  7. Bob_silvers

    Bob_silvers LawnSite Member
    from Iowa
    Posts: 2

    The Legalzoom sponsor on this site worked well for me in setting up my LLC. I think Lawyers and CPAs are luxuries for most start up businesses on a tight start up budget. However, once one becomes established it certainly doesn't hurt to surround yourself with knowledgeable professionals, especially CPAs. For a guy wanting to set up a start up business and save some bucks Legalzoom is the way to go. They answered all my questions and they give you the facts about the various business entities (pros and cons). I like them so well I'm doing my will with them now.:cool2:
     
  8. RyGuyusMaximus

    RyGuyusMaximus LawnSite Member
    Posts: 88

    Is Quickbooks the best route to take or is there another way to keep track of the "books"?
     

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