Legal Question in Business Law in Colorado

It is not possible to answer your attorney question without further information. A consultation is necessary to review the specifics of the internet business you propose as well as the financial and tax issues of the family members. Consult with an attorney in your area for specifics.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

My colleague is correct. The answer on the best entity requires much more information on the business members, their tax circumstances, and long term plans. As a basic observation, an LLC taxed as a partnership or an LLC taxed as an S corporation may be a couple of good choices.

Regardless of the entity, you need to talk to an attorney to draft a thorough shareholder or operating agreement. This is critical and not having this agreement is a mistake. Talk to an attorney as soon as possible. Good luck.