Legal Question in Business Law in New York

Re: Starting an Import Business in NY with two others

A partnership is generally a disfavored structure, because of its tax and personal liability effects. In order to come up with the most appropriate structure for your business, you should consult both your accountant, for tax advice, and an attorney, who can deal with the liability issues, as well as, in more general terms, the tax effects.

Once you've made your decision on a structure, the formation of the entity is generally quite simple, and not terribly expensive.

If I can be of assistance, please feel free to get in touch.

Re: Starting an Import Business in NY with two others

General partnerships do not provide limited liability (nor do limited partnerships to general partners) so you would want to look to a corporation or limited liability company for that feature. LLCs are pass-through entities for tax purposes and subchapter S corporations can also help you avoid double taxation.

Consult a corporate attorney for assistance in forming the right entity for your needs and in documenting it.

Re: Starting an Import Business in NY with two others

We all agree that you need an LLC or corp. But you will also need a written agreement outlining your respective responsibilities and powers and authority. You are asking for trouble down the road if you do not clarify these issues at the beginning. An attorney can do this and tell you other aspects of business and import law. There is always more than one thing you need to know when you know there is at least one.