Partnership or LLC for ecommerce?

[GamerGripz]

Me and my friend, who are both 17, started our own business and are towards the end of the startup and getting ready to launch. We sell grips for Xbox controllers online. We originally registered as a Partnership at our local county clerk. Since we changed our name we need to re register and are considering an LLC now since that's what most of our competitors are.

We will run out of my house and will not have any employees. We will sell our product on our website and hope to eventually get them into stores. I've read all about partnerships verse LLCs and all the liability and everything confuses me a bit. So in our situation would it be best for us to register as a partnership or as an LLC? And is registering for an LLC something we can do by ourselves? Or does it require a lawyer or professional help?

Thanks for the help guys!

 

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[Chaseb731]

Me and my friend, who are both 17, started our own business and are towards the end of the startup and getting ready to launch. We sell grips for Xbox controllers online. We originally registered as a Partnership at our local county clerk. Since we changed our name we need to re register and are considering an LLC now since that's what most of our competitors are.

We will run out of my house and will not have any employees. We will sell our product on our website and hope to eventually get them into stores. I've read all about partnerships verse LLCs and all the liability and everything confuses me a bit. So in our situation would it be best for us to register as a partnership or as an LLC? And is registering for an LLC something we can do by ourselves? Or does it require a lawyer or professional help?

Thanks for the help guys!

Start with a partnership and once you start generating enough, move to an LLC.

KEY - BEFORE doing anything, write up an agreement that outlines money being put in, responsibilities for each partner, and what happens and how to decide when you sell. This is very important to protect your relationship. Make it very clear.

Good luck,

Chase

 

[Whole Paradigm]

Don't worry about an LLC until you start making enough money to justify staying in the business...

Yes, you can set them up yourself or if you're unsure, you can get assistance with doing so from a few people here on the forum or somewhere like LegalZoom.

 

[Mike39]

uke: Partnerships..... ick

I would try and get something worked out to where you have controlliing stake in the company, even like 51% you 49% him, that's just my opinion, I would NEVER hang the life of my business on the health of a friendship. NECST?? Plus you can think you know someone really well, but you don't know that person as well as they know themselves, you don't know when they might decide having you out of the company might be in their best interests, so you have to plan ahead!

 

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