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LLC vs. LP?

tianah31tianah31 Guest Member Posts: 23
Hey everyone,
So I live in California, and I agree that an LLC is may very well be my best bet since there is more protection and free range in the growth of my business. I am wishing to start a PO business with my mother.- she LOVES to organize too. :) I see myself always being the owner of my business but I'm just not sure how it all fits together. Would I partner with my mother or would I employ her? How does it all work? Can anyone explain to me in layman's terms what some of my options would be? - I know that none of you guys & gals are lawyers, but I'm just kind of lost. If I go with legal zoom, would they be able to help me with this?

Thanks. -Sorry if I'm asking too much of you. Just kind of confused. :/

Comments

  • tianah31tianah31 Guest Member Posts: 23
    Thank you so much! Great advice! :)
  • tianah31tianah31 Guest Member Posts: 23
    Thank you so much Grace!
  • tianah31tianah31 Guest Member Posts: 23
    Amazing input!
  • c56serac56sera Guest Member Posts: 17
    I am just starting my PO business, do you have any tips for me? I live in California too. I hope to have my business name soon. I was thinking of going the sole proprietorship route to start..
    Carol
  • Tina KehlTina Kehl Guest Expert, Enrolled Posts: 107
    I set up an LLC to be all in with my partner (best friend) it works for us and only cost $125 where I live. Then we filed taxes and my accountant gave me the smack down... silly ladies. Talk to your tax man or accountant first...I believe Adam and Cynthia said in the beginning it is not really necessary for the most of us. Albeit (ahh my big word for the night) I do feel we are recognize as a legitimate biz with the clients we,ve had. I
    think it may not be necessary with mom. We all love our moms no matter what. They changed our diapers for goodness sakes!
    Best wishes...
  • AdamAdam Enrolled Posts: 936
    Hi Tina, why did your accountant give you a smack down for having an LLC?
  • Tina KehlTina Kehl Guest Expert, Enrolled Posts: 107
    He said we didn't need to be an LLC. We could have just been like subcontracting each other with 1099. Which costs less filing taxes with him than as a business which cost $400.00. I am no accountant, but that did make sense and that is what my hubby and brother in law do. I should have asked him first... live and learn
  • Tina KehlTina Kehl Guest Expert, Enrolled Posts: 107
    Oh yeah and I forgot we have to show profit as a business at some point I think 3 years or shut down with 1099 it is just income or not. I am going for the profit $$$
  • AdamAdam Enrolled Posts: 936
    Yes, I would still recommend using a LLC because of the protection it provides by legally separating business assets from personal. As an independent contractor, you lose that protection.
  • Tina KehlTina Kehl Guest Expert, Enrolled Posts: 107
    You got that right. I think we made the right choice and I feel more secure with this scenario. There Mr Accountant I disagreed with you for our situation. Take that
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