Pro's & Con's about Form 1065 Partnerships

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Rewire

Rewire

Senior Member
Location
Lake of the Ozarks
Get a pre-nup,the only big downside to a partnership is if it goes south. The best thing to do before forming a partnership is deciding how you will disolve it. An accountant would be an invaluable aset in this process.
 
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hardworkingstiff

Senior Member
Location
Wilmington, NC
IMO, partnerships are bad news. You are too closely accountable to your partner's action/s or inaction/s.

LLC's are really easy to set up and if you fill out the correct paperwork you can be taxed as a "S" Corp and that can be big benifit when it comes to SS taxes.
 
petersonra

petersonra

Senior Member
Location
Northern illinois
Occupation
engineer
LLCs are a better legal arrangement most of the time than a partnership. A LLP is also a possibility, but more convoluted for a 2 man operation, and some states would not allow an EC to form this type of legal structure.

There are two really important things to decide whan you go into business with someone, regardless of the form of the business. One is who the boss is going to be, and second is how the breakup works if you decide to go your seperate ways.
 
Fulthrotl

Fulthrotl

~Autocorrect is My Worst Enema.~
Location
HB, CA (19 Hrs. 22 Min. from Winged Horses)
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JacksonburgFarmer said:
Well....that is what we (me and my wife) use for our company....and we are a LLC. Seems to work good so far, but I am not much of a accountant/tax/lawyer type of gooroo...
Click to expand...

in some states, (calif. being one of them) you cannot have a LLC hold a C-10.
if we coulda, i woulda. a full corporaton is a pain if you are a sole proprietor,
and really doesn't shield you from much liability in this state, if you are doing
the work yourself.... they just sue your corporation, and you personally. :-(
 
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