My sister and I have purchased a business property from a lady that she used to work for. I put in the money for the property purchase and she has to put in the work. What is the best business type to become if we are going to go in this together? How does this affect taxes and liabilities for both of us?
In addition to Patrick's essential advice above, you may want to consider doing some networking with other small business owners to learn from their experiences. Next week actually there's a series of opportunities to network during Business Smart Week in Chicago. This year's event might be booked up, but you can still reach out to the planner at http://www.cvent.com/events/2019-business-smart-week-chicago/event-summary-de1c2f5c3ee14c35b100d634e3f0e76c.aspx.
Also various Chambers of Commerce are good ways to network/learn from other small business owners.
Choosing a legal entity is not as much related to the products or services you provide as much as it is related to your answers to three important questions:
1. How do you want to be paid?
2. How do you want to be taxed?
3. How do you want to manage risk and liability?
People with the same products and services may have different answers to the same questions. Thus, your answers to these questions, and consultation with an attorney and a tax adviser is the best and only way to decide the correct legal entity. Any other method of choosing your legal would be reckless.
And Nolo Press has great books for you, also!
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