Who is the best person to consult with when filing for a business entity, an accountant or lawyer?
I have a business name reservation with the State and about to file it as a coorporation. However, I am also starting another business with a partner and we thought of filing that business as an “assumed name” under my coorporation.
My question is does it makes sense to file for a limited liability partnership (tax purposes, etc), instead of filing a joint venture under my Corporate entity. I need to know which would be more beneficial for me and who I can talk to.
Thanks all
Cathy
Loaded question…
Depends on your plan… and exit strategies…
With partnerships… you need advice from both… entering into a partnership…
Is like entering into a marriage… at least in the sense you are doing it…
You arent talking about partnering on a per deal basis… If I undertand correctly…
The DBA would be owned by the corp… How is your partner going to get paid…
Will he/she… have an ownership interest in your corp as well… Is that what you want… will they just have a joint venture agreement with your corp…
I would test out the partnership so to speak at first… before I went into all the formal stuff… You can still have your interest owned by your corp… if you like… But, they own theirs however they choose…
I’m probably not making much sense at the moment…
It’s more to do with the plans… how the income is going to come in… where you are at currently…
It’s all about two things… Protecting both you and your partners money and interests…
And also, depends on the type of business… goals… what ya’ll are both after… etc…
David Alexander
Thanks David, very helpful. I fugured it out with both an attorney and an accountant consultation.
Everyone needs to understand not all attorney’s are created equal. Just as you wouldn’t go to a foot doctor for an ear infection, you shouldn’t go to a litigator or personal injury attorney for an entitiy sturcturing question.
What you need is a good tax attorney with a strong understanding of real estate and which entities are best suited for the type of investing you’ll be doing. Or you could find a good real estate attorney with a strong accounting & tax background.
By having both a tax attorney/real estate attorney and accountant you can be sure all your bases are covered.