At one point or another you find yourself having to deal with another individual not only in a business/working environment; but also on a more personal basis. This person may be your wife, husband, girlfriend, boyfriend, jump off, etc. But regardless of the level of capacity that person has in your life, what’s more important is how you structure your life/situations in terms of personal relationships.
You’re single. You call the shots, and you answer to no one but you.
Any decisions you make for the most part will only affect you personally. You’re free to make life altering changes at any given time because you have no obligations to consult with a significant other. You’re free to travel the seven seas and taste all 31 flavors, if you choose.
It can be lonely at the top sometimes. You may become tired of meeting different people only to find out they were a huge waste of time.
Everything is 50/50 with your partner. You consider this person to be your better half. They compliment and make up for all of things you lack. You trust this person to make the best decisions that will in fact get the two of you closer to your common goals.
You are obligated to consider this person at all times. You are responsible for your partner’s negligence, debts, and vice versa. You can not make any financial decisions without your partner’s knowledge. It’s no longer all about you, but WE.
Everyone is a “winner” in this situation. In this structure you’re not necessarily a couple or exclusive. The term “homie lover friend” may come to mind. You have the benefits of a relationship, but there’s no commitment nor any strings attach. All parties/shareholders involved reap immediate benefits. If unfortunate drama were to arise, your personal assets are not comprised. You simply move on to the next person. The goal in this situation is to provide the most effective and productive environment that will give the best return on investment for the entire team.
Someone may catch feelings. Someone may get greedy and start embezzling the goods and take advantage of a good situation. Open communication and integrity are particularly critical for the success of this structure. Someone is going to feel left out eventually. You may find you’re spreading yourself to thin. Double taxation can be an issue as well.
Limited Liability Company:
The most popular structure of all. In this situation a person just getting into the game or back to active dating has an advantage of having more opportunities to invite more shareholders into your venture. The term that may come into mind may be “jump offs”. Your assets are also protected under this structure.
LLCs do not have perpetual life. You can’t be a player forever. Since an LLC is relatively new, its tax treatment/benefits vary by state. Or should I say varies by the person involved.
If you plan to operate in several states and with different people, you must determine how that state/person will treat your LLC form in another state.
So I ask you the following questions:
What’s your situation?
How are you structured?
To answer my own question I would say I am currently functioning as a happy Sole Proprietor. However, I did recently end a bittersweet corporation venture. The double taxation was too much for me to bare. Not to mention I don’t like to share at this point and time in my life.