So I'm starting a business with two other people. We have decided on 50-25-25 ownership. The business is an online game. What we don't know is the legal side to things. What business form should we use? How do we register the company, and how do we split ownership?
Also, I am 17. Both of the other guys are over 18. Would me being underage affect my ownership?
I appreciate any help you can give. Thanks!
1 Answer from Attorneys
There are a lot of things that go into deciding the type of business entity to use. The type of ownership you want can be obtained in a corporation, partnership, or LLC. Without more specific information I would not feel comfortable suggesting one form over the other; however, an LLC generally provides the benefits of a corporation without a lot of the additional technical issues. For what you want I do highly advise consulting an attorney.
Companies in Arizona are registered through the Arizona Corporation Commission. http://www.azcc.gov/.
In addition, the fact you are 17 does affect ownership, because you the law does not recognize an ability for you to enter into contracts until you are 18. There are some options available to you; however, again these can get complicated so it would be in everyone's best interest for the three of you to sit down with an attorney.
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