Hi, me and my business partner are wanting to form an online business in Nevada. I have 3 questions that hopefully some of you can address. One involves the requirement of a gambling license. Our business focuses on skill based video gaming on the Playstation 4 and Xbox gaming consoles. Players invite each other to cash games through our website where each user pays a head to head cash fee in advance and the winner takes the pot. We charge a 10% commission fee for each match that is set up. If both players agree to a match of $10, the pot prize would be $18 to the winner and we take $1 off each player as the fee. We also host tournaments with cash prizes where the user pays a fee to enter the tournament. It's similar to the rake system in poker. One of our competitors also operates without a gambling license because of the skill gaming and not gambling aspect and they seem to not have had a problem. I just want to make sure and clear up if our business would need a gambling license or not before proceeding further.
Secondly, we are having trouble deciding on the legal structure of our business. Initially, me and my business partner are going to own 50% each of the company and it's going to be an equal partnership. We don't know if it would be wiser to form a corporation, partnership, or a multi-member LLC.
Lastly, my business partner is from the UK and I know him through competitive gaming online and meeting each other at live events. Will him being a non-citizen cause us to not be able to form a certain type of LLC or corporation. I believe I read that an S-Corp cannot be formed if one of the owners is a non-citizen.
Thanks in advance, I look forward to your replies and hopefully someone can answer all 3 of these questions.
Secondly, we are having trouble deciding on the legal structure of our business. Initially, me and my business partner are going to own 50% each of the company and it's going to be an equal partnership. We don't know if it would be wiser to form a corporation, partnership, or a multi-member LLC.
Lastly, my business partner is from the UK and I know him through competitive gaming online and meeting each other at live events. Will him being a non-citizen cause us to not be able to form a certain type of LLC or corporation. I believe I read that an S-Corp cannot be formed if one of the owners is a non-citizen.
Thanks in advance, I look forward to your replies and hopefully someone can answer all 3 of these questions.
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