Legal Question in Business Law in Maine

Re: Can ''part'' of a business enter into a contract?

Hello- When it comes to business planning and corporation issues, it is often important to make sure the whole situation is considered. The ripple effects on an established business from a new venture are not unlike those created by a pebble tossed into a pond.

Therefore, while possible complication in recordkeeping and taxes should be a consideration, they are only part of the picture. If your business is currently a partnership, why is it? who are the partners? have you considered the liability benefits of an S-corp or an LLC? What exactly is your concern about the possible "binding" nature of the new software agreement? Is it liability? Liability for the contract will extend to the whole entity. It does not strike me that if the current business established a wholly owned entity for the software venture that it would pose any greater tax record keeping burden than a second set of books and your accountant would prepare a seperate schedule since the new entity would likely have pass-through income anyway.

Do you have an accountant and/or lawyer who work together regarding your business? My firm works closely with numerous accountants to be sure our clients have the best planning possible.

It is difficult for me to be more specific with your question in an internet-type forum. Feel free to contact me directly for a more comprehensive discussion, I would not charge for an initial telephone call. My direct is 767-4824; [email protected]. Thank you.