Opening SPA/MASSAGE business ,Legal Q's !

Discussion in 'Legal and HR' started by tHai9, Jan 30, 2013.

  1. tHai9

    tHai9
    uix_expand uix_collapse
    New Member

    Joined:
    May 17, 2012
    Messages:
    22
    Likes Received:
    2
    My mother and I are looking to open a spa/massage place real soon.
    We both have experience in the massage field and she currently has her own massage business( sole propieator)
    I do all the behind-the-scene stuff such as paper work and such.

    My question is, how would we set up the business in the legal sense.
    She is a licensed thrapist and has a business permit for her current place.

    The new place will be atleast 1500-2000sq ft
    Both of us will run it. How would the business be structured so both of us splits 50/50 ownership and profit?

    whats the best for a spa/massage establsihment with 2 owners?

    Partnership? LLC? whats the pros/cons of each?


    thanks!
     
  2. Ted

    Ted
    uix_expand uix_collapse
    Member

    Joined:
    Jan 3, 2013
    Messages:
    182
    Likes Received:
    164
    I am sure you are either going to want to form an LLC or possibly an S-Corp. You should consult with a California attorney and CPA. They will give you the best advice and YES that advice is worth paying for. Believe me it is.

    You want to have some kind of separate business entity as seen by the state of California in case you are ever involved in a lawsuit that has anything to do with your business. Otherwise, if either one of you is named in a lawsuit, both you and your mother's personal assets would be exposed (according to how I understand it - I could be wrong though.) There are a million things you can get sued for these days too. If you are in business long enough, it will happen. You can bet on it.

    An accountant will ask how much money you expect to earn per year. That is also a deciding factor in whether to go with an LLC or an S-corp.

    Best of luck to you.
     
    • Like Like x 3
  3. Business Attorney

    Business Attorney
    uix_expand uix_collapse
    Premium Member
    Premium Member

    Joined:
    Mar 22, 2009
    Messages:
    607
    Likes Received:
    289
    As Ted said, you should talk to a California attorney and accountant. From a legal perspective, you will want to avoid a partnership because of the personal liability issues. Whether the business should be an LLC or an S corp depends on a lot of unique factors. See http://www.limitedliabilitycompanycenter.com/llc_vs_s_corp.html If you need to plow money back into the business for a while, it may even make sense to be a C corporation, which has its own graduated tax rates at low levels.

    By talking to a good tax advisor, a few hundred dollars can save you thousands in taxes. And selecting the proper form of legal entity can help you minimize the risk of exposing your personal assets to liabilities of the business.
     
    • Like Like x 2
  4. scifi

    scifi
    uix_expand uix_collapse
    Member

    Joined:
    Nov 2, 2008
    Messages:
    1,207
    Likes Received:
    44
    Dear

    Just two points to this-
    1- Do some research on your own on the internet so that you can get an idea of basic things and have some basic understanding
    2- Consult your CA(Chartered Accountant) or Legal Advisor on the basis of point 1.

    That will be the best thing..:)
     

Share This Page