How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Richard Your Own Question
Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 54574
Experience:  32 years of experience practicing law and a businessman.
17027240
Type Your Business Law Question Here...
Richard is online now
A new question is answered every 9 seconds

Me and my mother are about to start an ecommerce website that

Resolved Question:

Me and my mother are about to start an ecommerce website that will allow customers to down load MP3 information type products. We are trying to figure out what the easier cheapest and safest way to form the business might be. Any suggestions.


Thanks,
Chris
Submitted: 7 years ago.
Category: Business Law
Expert:  Richard replied 7 years ago.

Good morning. Congratulations on your business idea! I would form a limited liability company. It provides you with: i) limited liability...meaning your personal assets are protected from liabilities of your business; and ii) is a flow through tax entity...meaning you are not subject to tax at both the entity level and your individual level. All you need to do to form an LLC is to file a Certificate of Organization with the Secretary of State, obtain a Employer ID number from the IRS, and prepare an Operating Agreement to set forth the terms of agreement between you and your mom.

 

 

I hope this has given you the guidance you were seeking. I wish you the best of luck!

 

 

 

The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Customer: replied 7 years ago.
Thanks. Are you talking about a limited liability corporation?
Expert:  Richard replied 7 years ago.

My pleasure...It's actually a limted liability company. A corporation would either refer to a C corporation or an S corporation. There is a separate Limited Liability Company Act for LLC's. They are a bit more flexible than an S Corporation. A C corporation would subject you to double taxation.

 

 

I hope this has given you the guidance you were seeking. I wish you the best of luck!

 

 

 

The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Richard and 8 other Business Law Specialists are ready to help you

Related Business Law Questions