Legal Question in Business Law in Pennsylvania

Tech Consulting Startup

We are going to start a technology consulting company and need assistance with the selection of the company type, LLP, LLC, or S-Corp. Plus my partner had to sign a non-compitition agreement and want to find out if there is a way around it. He isn't allowed to compete within a 50 mile radius of the company he currently works for.


Asked on 5/19/05, 8:44 am

2 Answers from Attorneys

Mark Johns Mark Johns, Esquire

Re: Tech Consulting Startup

Eacg form has its strengths and weaknesses. LLC's and S corp.'s are probably the best options but you individual situation will determine it. As to non-competes, Courts tend to construe them very narrowly. I suggest that you speak with an attorney to discuss these issues. I offer free consultations.

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Answered on 5/19/05, 8:52 am

Re: Tech Consulting Startup

An LLP requires at least one general partner with unlimited liability. LLC and S-Corp. both offer limited liability with tax advantages and generally are the preferred forms for small businesses.

Non-compete agreements are enforceable if limited in scope (in duration, in geographical range, and in the activities prohibited). You should have your particular situation reviewed by an attorney.

Feel free to contact me if you want to schedule a consultation.

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Answered on 5/20/05, 5:34 am


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