Business owners - LLP or LLC

[GhostofMarcus]

My partner and I are are starting business together. It will be just the two of us.
I am looking for legal liability (Business will be custom printing, don't want to be sued for copyrights problems).

I fill the form for LLC and something happened so I guess he had to refill the form out again. He filled out a LLP cause the lady told him it was the same. If I understand right, in the LLP, one of the partners can not take a active role in the partnership operation.

Which is better for taxes and legal protection.

Thanks

 

[dasmybikepunk]

My partner and I are are starting business together. It will be just the two of us.
I am looking for legal liability (Business will be custom printing, don't want to be sued for copyrights problems).

I fill the form for LLC and something happened so I guess he had to refill the form out again. He filled out a LLP cause the lady told him it was the same. If I understand right, in the LLP, one of the partners can not take a active role in the partnership operation.

Which is better for taxes and legal protection.

Thanks

Trust me fam' get a lawyer or at best a business consultant LLC is the way to go if it's just you and your peeps on an upstart..... but depending on your organizational structure and where your money is coming from make sure you check out LLP...it's all online google it

 

[Temujin]

Depending on what state your in. Many states the protection offered to the owners of a llp is significantly less then that of a llc.
If you are in any of these states Alaska, Louisiana, Ohio, Arkansas, Maine, Pennsylvania, District of Columbia, Michigan, South Carolina, Hawaii, Nevada, Tennessee, Illinois New Hampshire Texas, Kansas, New Jersey, Utah, Kentucky, North Carolina and West Virginia go with and LLC instead of an LLP.

In these states the LLP may still be held liable for personal debts of the partners while in an LLC the corporation can't be held liable. If you are not in these states then the LLC and LLP are essentially the same.

Another form you might want to look at is fully incorporating as an S corporation. S corporations have significant tax advantages for the owners if you expect the corporation to lose money the first couple years. In an S corporation the profit or loss of the company flows back to the owners so if the company lost money you could claim the loss as a business expense on your PERSONAL tax returns. But if you think the company will be profitable from day one and your personal tax rate is higher then the corporate tax rate then go with the LLC.

 

[GhostofMarcus]

Depending on what state your in. Many states the protection offered to the owners of a llp is significantly less then that of a llc.
If you are in any of these states Alaska, Louisiana, Ohio, Arkansas, Maine, Pennsylvania, District of Columbia, Michigan, South Carolina, Hawaii, Nevada, Tennessee, Illinois New Hampshire Texas, Kansas, New Jersey, Utah, Kentucky, North Carolina and West Virginia go with and LLC instead of an LLP.

In these states the LLP may still be held liable for personal debts of the partners while in an LLC the corporation can't be held liable. If you are not in these states then the LLC and LLP are essentially the same.

Another form you might want to look at is fully incorporating as an S corporation. S corporations have significant tax advantages for the owners if you expect the corporation to lose money the first couple years. In an S corporation the profit or loss of the company flows back to the owners so if the company lost money you could claim the loss as a business expense on your PERSONAL tax returns. But if you think the company will be profitable from day one and your personal tax rate is higher then the corporate tax rate then go with the LLC.

Thanks Temujin, I am in North Carolina. Thats what I thought. The lady was telling my partner that it was the same. I am going with the LLC. Because of the copyright problems that might could happen if not careful.

 

[mrjody]

My partner and I are are starting business together. It will be just the two of us.
I am looking for legal liability (Business will be custom printing, don't want to be sued for copyrights problems).

I fill the form for LLC and something happened so I guess he had to refill the form out again. He filled out a LLP cause the lady told him it was the same. If I understand right, in the LLP, one of the partners can not take a active role in the partnership operation.

Which is better for taxes and legal protection.

Thanks

LL stand for LIMITED liability, P is partenership, C is corporation. Forming a corporation will only shield your PERSONAL assest from litigation. Rest assured if your comapany is infringing on someones copyrights you will be sued out of existence. They just cant touch your house, car ect. All the $$ and assets (printing equipment, inventory, CASH, accounts receivables, computers, phones in the LLC or LLP is up for grabs if you get sued.

Here is a link to some info. Good luck!
http://www.activefilings.com/en/information/index.htm

 

[QueEx]

Side Note:

Generally, people select one of the various corporate forms to protect themselves against "Personal Lliability" (having ones personal property exposed rather than just the assets of the corporation) but they should also know: you may not be able to avoid "Personal Liability" for some deeds of the corporation (whatever form you use) if the corporation is not reasonably <u>insured</u>. For example, even with a custom printing business, if you're making a delivery or pick-up connected with the business and you are involved in an accident that injures someone, the injured party may "Pierce-the Corporate-Veil" (look through the corporate form to your assets) and come after you personally if the automobile you were driving was not insured. Just and example but, as you might imagine, there are many ways one might cause tortious injury that the corporate veil will not protect you against, if the corporation is uninsured.

QueEx

 

[GhostofMarcus]

Side Note:

Generally, people select one of the various corporate forms to protect themselves against "Personal Lliability" (having ones personal property exposed rather than just the assets of the corporation) but they should also know: you may not be able to avoid "Personal Liability" for some deeds of the corporation (whatever form you use) if the corporation is not reasonably <u>insured</u>. For example, even with a custom printing business, if you're making a delivery or pick-up connected with the business and you are involved in an accident that injures someone, the injured party may "Pierce-the Corporate-Veil" (look through the corporate form to your assets) and come after you personally if the automobile you were driving was not insured. Just and example but, as you might imagine, there are many ways one might cause tortious injury that the corporate veil will not protect you against, if the corporation is uninsured.

QueEx

Thanks for the reply QueEx

 

[A30]

Good Lookin Mrjody On That Link I Needed That

 

[Lick]

My partner and I are are starting business together. It will be just the two of us.
I am looking for legal liability (Business will be custom printing, don't want to be sued for copyrights problems).

I fill the form for LLC and something happened so I guess he had to refill the form out again. He filled out a LLP cause the lady told him it was the same. If I understand right, in the LLP, one of the partners can not take a active role in the partnership operation.

Which is better for taxes and legal protection.

Thanks

“LICK” here my brother…
As far as taxes, Inc, LLC or LLP are all some what the same. However, an LLP will give each “Partner” in the origination the most protection.
No another brother on this board gave the best advise… And that is to go hire an Attorney in this field and seek his advise.
Stay up!

 

[QueEx]

“LICK” here my brother…
As far as taxes, Inc, LLC or LLP are all some what the same. However, an LLP will give each “Partner” in the origination the most protection.

Why ???

QueEx

 

[Lick]

Why ???

QueEx

With a limited liability partnership (LLP) it is a form of a business organization combining the parts of one or more partnerships and or corporations. In an LLP, all partners have a form of limited liability, similar to that of the shareholders of a corporation. However, the partners have the right to manage the business directly, and (in many areas) a different level of tax liability than in a corporation.
Limited liability partnerships are distinct and very different from a limited partnership, in that limited liability is granted to all partners, not to a subset of non-managing "limited partners." As a result the LLP is more suited for businesses where all investors wish to take an active role in management and if a partner is sued it is one to that partner.
Stay up!

 

[Temujin]

With a limited liability partnership (LLP) it is a form of a business organization combining the parts of one or more partnerships and or corporations. In an LLP, all partners have a form of limited liability, similar to that of the shareholders of a corporation. However, the partners have the right to manage the business directly, and (in many areas) a different level of tax liability than in a corporation.
Limited liability partnerships are distinct and very different from a limited partnership, in that limited liability is granted to all partners, not to a subset of non-managing "limited partners." As a result the LLP is more suited for businesses where all investors wish to take an active role in management and if a partner is sued it is one to that partner.
Stay up!

That was a good quote of the difference between a general partnership and a limited liability partnership. Yes the protection afforded partners in an LLP is greater then that of a general partnership but that does not make it greater then that of an LLC.

From everything I read the protection for partners in an llp is ,the same or less then the protection for owners of an LLC.

 

[Lick]

That was a good quote of the difference between a general partnership and a limited liability partnership. Yes the protection afforded partners in an LLP is greater then that of a general partnership but that does not make it greater then that of an LLC.

From everything I read the protection for partners in an llp is ,the same or less then the protection for owners of an LLC.

I hear ya my brother... I know two guys that have that and for what they are doing and what they tell me the LLP is the strongest of the as far as taxes goes.
I am still just a student of them and I do everything I can ot learn from the catz I know that are in the game.
Stay up!

 

[dasmybikepunk]

Trust me fam' get a lawyer or at best a business consultant LLC is the way to go if it's just you and your peeps on an upstart..... but depending on your organizational structure and where your money is coming from make sure you check out LLP...it's all online google it

So like I said if it's just you and your family business or sole propietership looking for liability protection go LLC.

If you and your boys or business associates and mixing money and finances them LLP of course to protect each individual and partnership related liabilities...

But don't take my word for it nor any other members replying to your question take about $100.00 and find the best business consultant in your area willing to sit down with you for an hour or more, take pen and paper, even a miniture recorder and bring one of your business partners or associates with you have them take notes to and get consulted on your start-up.....minority and small businesses make this same mistake time and time again....

1. Pre-Business Plan Draft
2. Lawyer
3. Business Consultant
4. Start-Up Business Plan


If you do not do at least 3 of these steps your venture is more likely to fail...LLC OR LLP.....

nuff said

 

[GhostofMarcus]

So like I said if it's just you and your family business or sole propietership looking for liability protection go LLC.

If you and your boys or business associates and mixing money and finances them LLP of course to protect each individual and partnership related liabilities...

But don't take my word for it nor any other members replying to your question take about $100.00 and find the best business consultant in your area willing to sit down with you for an hour or more, take pen and paper, even a miniture recorder and bring one of your business partners or associates with you have them take notes to and get consulted on your start-up.....minority and small businesses make this same mistake time and time again....

1. Pre-Business Plan Draft
2. Lawyer
3. Business Consultant
4. Start-Up Business Plan


If you do not do at least 3 of these steps your venture is more likely to fail...LLC OR LLP.....

nuff said

Thanks for the info but I will not fail if I don't do 3 of those listed.
How much planning do I need to put graphics on items(tees,tile,etc) for people or myself. I am not starting some large ass company. we do have a basic business plan plus my boy has worked in the printing field and I am no dumb ass.

 

[Lick]

Thanks for the info but I will not fail if I don't do 3 of those listed.
How much planning do I need to put graphics on items(tees,tile,etc) for people or myself. I am not starting some large ass company. we do have a basic business plan plus my boy has worked in the printing field and I am no dumb ass.

My brother,
The bottom line is, are you making money. That will determined failure or not. No money earned no business. There is nothing to protect.
Stay up!

 

[GhostofMarcus]

My brother,
The bottom line is, are you making money. That will determined failure or not. No money earned no business. There is nothing to protect.
Stay up!

ok

 

[Lick]

ok

Sorry bruh... Did not mean to through you off... In another post a brother said you have to do three of the four things he posted. I was only adding that if you are not making money then it does not matter. No worries my brother.