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 Legalinfomd Your Own Question
Legalinfomd
Legalinfomd, Attorney
Category: Business Law
Satisfied Customers: 160
Experience:  Attorney with 24 years of experience in business law.
69220296
Type Your Business Law Question Here...
Legalinfomd is online now
A new question is answered every 9 seconds

My business partner and I want to form an official partnership

Resolved Question:

My business partner and I want to form an official partnership and eventually would like to form an LLC. However, I live in the state of Oregon and he lives in the state of Montana. What is the best strategy for us to form a business in this type of situation? I assume we need a business bank account, but in which state should it be opened and how does all of that work?
Submitted: 3 years ago.
Category: Business Law
Expert:  Legalinfomd replied 3 years ago.

Legalinfomd : Hello. I will respond to your question.
Legalinfomd : You may form a limited liability company in either Montana or Oregon, or in any other state for that matter. You should consult with an accountant to determine the best state for incorporation from a tax standpoint. That would be your primary consideration. Other factors would include the state in which most of your business may be conducted, unless your business is of the nature of internet sales or the like.Regardless of the state in which you form the LLC, you will have legal protection from personal liability for the general obligations of the entity.
Legalinfomd : As to the bank account, you should open that account with a bank that maintains offices in both states, and you should do so at a branch that is close to whichever one of you will assume primary responsibility for receiving and depositing payments from customers, and paying bills.
Legalinfomd : If you form a general partnership for some period of time before forming an LLC, you need not worry about the home state for now since a general partnership does not require filing of any documents to form that entity. You merely obtain a federal EIN for the partnership and begin conducting business.
Legalinfomd : In either case, you should engage an attorney to prepare either a partnership agreement (in the case of a general partnership) or an operating agreement (in the case of an LLC) to set forth the terms and conditions of your arrangement with your partner, such as voting, profit sharing, restrictions on the right to sell your interest in the business, etc.
Legalinfomd : I hope that this information has been useful. Please be sure to leave a positive rating for my response when you accept my answer so that I will receive credit for my time. Thank you and good luck with your business.
Legalinfomd and 2 other Business Law Specialists are ready to help you