My business/investment partner and I are going to set up our LLC or partnership this week.
We want to set up the LLC so that it is a passthrough, entity but will the average lawyer or accountant be able to set something like this up?
Also, do we need to get insurance for the llc, or will individual property policies be enough.
Is there anything else I should be aware of when doing this?
Work out all the details with your partner before you go to the attorney and have him draft the operating agreement. Have your CPA review the tax consequences. If you go the general partnership route, you are personally responsible for anything he does in the name of the business. You are putting all your personal and professional assets in his hands. It can be the same deal if both of you manage the LLC.
So either way we go, you are saying that im making myself vulnerable? I’m not worried about my business partner doing anything stupid. I just want to make sure our legal vulnerabilities are covered (as much as possible) from suing etc.
Aren’t these my two best options for protection? I thought about C-Corp (maybe S) cant remember, but that seemed more complicated with few advantages.
Unless you let someone else do all the work, you will be responsible for your own action and inaction in the name of the business. You’ll need advanced planning to plug the holes.