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I have been doing Preservation work for a few years now as a Sole Propitorship and am about to make a change. Me and my brother are going to partner up starting Jan. 1st with a complete new business and name. The strugle is what entity we should go with for the best breaks considering the kind of business...I have the form filled out on the desk for LLC and see that the EIN needs to be filed for as a Partnership since there will be two owners of the company....Any friendly advice?

Now if I go from LLC to INC in the future will this screw up banking accounts cause them to be closed and reopened along with a new EIN number being needed?

THANKS!
Donny
 
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I roll as an s-corp. Just split the shares and only get taxed once.
 

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I am a LLC. the income is passed through and I just file a 1099 @ the end of the year for my income from the company.
However; the BEST ADVISE is to check with your accountant because everybody's situations are different.
Good luck
 

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brm1109 said:
I am a LLC. the income is passed through and I just file a 1099 @ the end of the year for my income from the company.
However; the BEST ADVISE is to check with your accountant because everybody's situations are different.
Good luck

Same here. A LOT less headache than an S-Corp per my accountant........
 

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By the way, Be real careful of a family partnership. Your playing with fire and unless one of you is willing to let the other make the calls you'll butt heads...................
 
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LLC and S-Corp's offer the same level of protection, the same system and forms for taxation, and function similarly. In my state, for the S-Corp we must file a simple form every two years for the S-Corp that does not get filed for the LLC. This form just lists the names and addresses of officers/board members. In other words, in practical terms, there is little difference.

My construction company is a Sub-S (since 1982) and my property management firm is an LLC (since 1998).

There is a little more paperwork in establishing a Sub-S. You must first establish a Corporation then apply for Sub-S status with the IRS. It's just a little more paper.

You should do one of them prior to the first job. Do everything in the name of the entity, not your own. Starting out makes everything easier and cleaner. Switching later will require new licensing, insurance, phone, supplier accounts, etc.
 

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Thanks to all again.... I am thinking about the LLC and as for family I am handling the Office and he is handling the field. I am also putting in a few days a week myself but mostly I will do the headache stuff untill we get going and can bring in an office with staff to do it.....
 
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