Best business structure for 3-person part-time startup
jacquesm: From your description an LLC sounds like the way to go. Partnerships have all kinds of drawbacks, depending on your locality you might become liable for your partners debts. An llc is a good step up to becoming an 'Inc' when and if you are more successful.It will give you more (a lot more) protection from a legal point of view than a partnership and you still have the same benefits tax wise.Tax laws regarding llcs vary state by state so plese make sure the above applies to your state.If you plan on picking up venture capital or doing other things that will require outside partners then you really should look at incorporation, it is my experience that such activities are much easier to undertake when your business is a legal person in its own right (which an LLC is only to some extent).