What is the best legal structure for a 3-person group. LLC? S-Corp? C-
Corp? We are going to provide technical services.

Mook

On Wed, 16 Jul 2008 10:49:41 -0700 (PDT), Mookie Moto
yahoo.com> wrote in
<63ed5d0f-0c44-4480-bbfc-3debebafdb55@d1g2000hsg.googlegroups.com>:

It depends on a number of things, such as how much money you're going
to make, how you're going to distribute the corporation's earnings
(salary, dividends, owner's draw), what your tax situation looks like,
whether you plan to sell your business in the foreseeable future, etc.

You really need to talk to an attorney and an accountant about the
specifics of your situation and the laws in your jurisdiction.

Each form has advantages, but you have to look at a lot of different
aspects of how you want to run your business to decide what's right
for you.

On Jul 16, 10:49 am, Mookie Moto yahoo.com> wrote:

That's fine and dandy, but what services you're going to provide is
not particularly important. What is important is how many of the
three will be owners (i.e., entitled to a share of profits) and how
many, if any, will be entitled to a salary.

Another important question is, do you intend to use the company as a
vehicle to purchase health and life insurance and/or to provide a
pension plan to the members of the group? The answer to that question
alone could determine your preference for the organizational form.

You really should discuss this with a competent attorney or tax
accountant. Everyone's situation is different, so what works well for
someone else won't necessarily work for you...

Cheers,
NC

Only one person will get the profits. The rest will be W-2 employees.
Maybe even the owner getting the profits will be a W2.

What type of organizational form is better if you do intend on setting
up a health plan for the W2 employees and maybe the owner taking
profits?

Mookie Moto wrote:

First, please don't delete the attributions added by your client. It's
considered rude to quote people without attributing the quotation.
I've added them back in.

On Thu, 17 Jul 2008 20:58:21 -0700 (PDT), Mookie Moto
yahoo.com> wrote in
x35g2000hsb.googlegroups.com>: