Legal Question in Business Law in Massachusetts

Re: Advice on business type requested

There are 6 basic types of business entitites as follows;

1) SOLE PROPRIETORSHIP;

2) PARTNERSHIP;

3) LIMITED LIABILITY COMPANY;

4) CORPORATION;

5) LIMITED PARTNERSHIP;

6) BUSINESS TRUST

Each business entity has a variation of the following factors;

1) LIMITED LIABILITY;

2) CENTRALIZATION OF MANGEMENT;

3) PERPETUAL LIFE;

4) TRANSFERABILITY OF INTEREST;

5) SIMPLICTY OF ORGANIZATION;

There are also various tax considerations relative to each entity;))Please feel free to contact me direct to sort out all the possibilities;)

Re: Advice on business type requested

The degree of liability protection is the same for any of the forms (corporation, LLC), so the sole differentiating criterion is going to be among "C" or "S" corporate, or partnership, tax status. Consult with your CPA (not just someone calling himself an accountant, but a real Certified Public Accountant) for advice specific to your plans. [Don't have one yet? get one; I can give you some referral choices if you need help.]

Best wishes,

LDWG

Re: Advice on business type requested

Asset protection is always paramount. This is particulaly true when considering business start ups. Many different experts employ a plethera of devices to protect assets. The most common theme is to place those valuable assets in legal entities that are separate from specially created legal entities that own and legally operate the various busness ventures. By the short statement of your considered activities, you mY be wise to seek legal advice from an experienced attorney in order to exploy a wide range of options and settle upon those which specifically suit your special needs.

This Office provides more than 37 years of business counseling inluding asset protection all over the US.

Re: Advice on business type requested

If there is more than one owner of the business, you can have an LLC or Sub-S corporation or C Corporation.

LLC and Corporations have limited liability, which protects your personal assets from claims other than malpractice or personal torts. Malpractice relates to violations of professional standards and may not be applicable to either of your businesses.

An LLC and a Sub-S corporation are taxed in a similar fashion to a partnership. A C-corp is taxed as a separate entity. Without more information is difficult to properly advise as to tax issues, but I would probably be inclined to use an LLC as it provides the most options in dealing with ownership and tax issues.

Please feel free to contact me to discuss your options in more detail.