Business License

[Doughman]

I am starting a business venture with two of my brother-in-law's and my sister-in-law's husband.  We are going to begin flipping properties with our first property being targeted in the 1st quarter of 2004.  

I am curious if it is important or necessary to file for a business license to operate as a partnership?  Our plan is to put $15K each into a business account and manage all expenses from that account.  

I know many people that do rehabs do it as individuals and some of you may have partners.  I am curious if there is a need or benefit to having a business license.

Thanks, in advance for your input.

[tedjr]

Do not know what state you are in.  In Texas to the best of my knowledge you do not need a business license. To open an account you will need a DBA from the county court house. Sounds like you are doing a General Partnership where all partners are involved and can be help liable for all partnership liabilities. If you do a limited partnership and limit the liability of some of the partners you will have to be registered with the Secretary of State. They have an online site where you can check out the requirements for that.  I happened to have it saved as a favorite from a recent trip myself  http://sos.statetx.us/
Hope this helps some. If I can help further please let me know. Be glad to help you stumble thru it.

Happy Holidays and Thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas  78737
512-301-9171 home
512-587-6177 mobile

[David Alexander]

Yes, what your doing is starting a general partnership....

It's an informal one....

Their are different licenses you need for different things....  For instance sells folks often need licenses to sell in certain areas.... Or certain industries ahve guidlines where you need permits to sell certain things...

A DBA stands for Doing Business As.... and is exactly that.... letting the world know your doing business as another name....

DBA when used instead of your personal name....  (in most places you can do business as say Alexanders Lawn Care and you wouldnt have to register, I believe)  on the otherhand... National Lawn Care and you would need to have a DBA filed to make sure no one else is operating in that county under that same name....

DBA's are the most dangerous way to do business.... You have no protection....

And/or doing business personally is the most dangerous way to do business.....

But, to buy/sell real estate for yourself personally requires no license that i'm aware of....

Also, understand that partnerships are hard.... and good ones are almost like a marriage...

I would say do a deal or two... to get started......

Then look into more formal arrangements like corps, LP's and combinations thereof.....  Even both you forming a corp together would better for the long term.... to keep from exposing yourselves personally to liability....

But, in the beginning.... your fine just the way it is..... See if it works... then go from there....

David Alexander