Business Structure

[McKenzie Benson]

Hello BP,

I have a series of questions to ask concerning a business structure so any help that the community could offer would be great.

Question 1: My family and I (wife, mom, brother, and dad) want to start a buy and hold company and I was wondering what business structure would you suggest? Originally we considered a LLC but from everything we have read, we have found that we cannot get extended financing due to having our business structured as an LLC. We considered having an informal but legal business arrangement (governing rules created by an attorney). I would like to have the protection of an LLC but not the restrictions. Your comments will greatly be appreciated!!!!

[Ben Sinkunas]

Paul,

You may know this but, even though you have elected to be taxed as a partnership, you will have the same tax consequenes as your single-member LLC. You are subject to federal and self employment taxes and you may want to look at setting up an LLC that is taxed as an S-Corporation, depending on the state you chose to incorporate in.