Legal Question in Business Law in California

Re: Desperate for Help!

I doubt very much that you would want to try to create a LLC without an attorneys' help.

There are advantages to limited liability (which a general partnership will not do), but entities that will provide such protection tend to cost more (and are only really worth it if you have assets to protect).

If you or your father has sufficient assets that you would worry about having them taken away by some creditor down the line, then you have sufficient assets to make it worthwhile to hire an attorney to advise you about the best business form for your purposes.

You should also know that e-commerce in California is regulated by specific laws that require, among other things, a refund policy (even if the policy is that you do not give refunds) and a privacy policy (even if your policy is to refuse to protect your customer's privacy). You may also wish to have on your e-commerce web site: a disclaimer (or TOS), a copyright notice, and a click-wrap agreement.

If you have questions about anything I have said above, please feel free to call me at (650) 566-8500 or send email.

Re: Desperate for Help!

The minimum taxes may be higher for an LLC, but it (or a corporation) offers limited liability for you and your father if the corporation is sued, and also for debts of the corporation.

Typically, in a general partnership, the general managing partners (you and your father, most likely) are personally liable for the partnership's debts and judgments.

Re: Desperate for Help!

1. Never use a general partnership.

2. An LLC or Corp. is your best bet. An LLC has additional taxes in Cal. based on revenue. However, unless you are going to do big business, I wouldn't worry about it.

3. Don't set up the LLC or Corp. yourself. To ensure limited liability, you need to form and operate the business entity properly. You should get legal advice on both.