Legal Question in Business Law in Ohio
Start-up business structural issues
My wife and I, in partnership, (we have 2-minor children) are going to become independent contractors for a Tele-Comm. Company. I presently own a business(sole-proprietor) which will have nothing to do with the aforementioned new business. How would we best be served (advantages & disadvanages) regarding taxes, and liability, both business and personal for us by forming:
1. Corporation
2. Limited partnership
3. General partnership
4. (or suggest a better business organizational
format?)
1 Answer from Attorneys
Re: Start-up business structural issues
Many issues come to play, here, not the least of which
are restrictions that will be asked of you regarding
non-competition, non-solicitation, and ownership of
intellectual property. Regarding intellectual property,
you may also need to make sure that your existing
intellectual property from your previous business
remains your own.
Depending on the state where you live, certain
restrictions that the telecom company may list in
their agreement with you may not actually be
enforceable.
Another form of business to consider: limited liability
company.
A lawyer can give an opinion on the liability aspects,
but I believe that an accountant should also be part
of your team. Perhaps you'll find an attorney who
is also an accountant, but that is not necessary.
A proper answer to your question would take much more space.
I don't normally respond this way, but if you
want, write to me and I will forward an article
that I wrote about things to consider when forming
a business entity. And, I'll round up some links
that explain the differences among corporations
(S and C types of corporations), partnerships
(general and limited), and limited liability companies.
I hope that your new business does well, and that
your entire family prospers.
Steven Hill
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