Best corp structure for firm w 2 50:50 partners and 5 employees.
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What's the best corp structure for a marketing firm in CA with 2 50/50 partners and 5 employees. Would like to make others in firm partners (equity & profit share), but myself and my current partner want to always maintain control and be majority stakeholders. Thanks!
Answer
This will vary based on your personal financial situations and should be discussed with an attorney and consider the tax implications as well.
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Answer
Generally speaking an LLC is considered best for a situation like yours. LLC operating agreement are VERY IMPORTANT in any situation involving partners. The essentially spell out the rules of the company in terms of operations, managers, members and can include a wide range of subjects and rules. Moreover LLCs are a very flexible structure in terms of taxation.
I would recommend speaking with a professional in your area to find what fits your situation best. The idea is to find the best blend of asset protection, tax mitigation and ground rules that set clear rules and expectations for the partnership.
Also, beware of people promoting Nevada entities to California businesses. They offer very limited value to most businesses in California. Consult a professional in your area.
