Partners?

Its a corporation and hes said to me over and over he wouldn't be successful with out me so i know he wants to keep me around. There is no way its just a work comp dodge, we have 24 other employees and we are not fans of the companies made up of 5 sole proprietors. We are planning to start discussing the financials and work our way into things. The accountant and attorney are good advice. I will look into that

All I have to say about partnerships is that they are like being married. If eventually you don't see eye to eye on something and it comes to an end, it could get ugly.

When my business partner and I split, I took my truck, the tools I came in with and the new trailer I built to haul them way. Gave him everything else. Business name and number, office space, current and upcoming contracts, lots of tools bought by the company, the company truck, and a ¾ of the money in the business account.

I wanted OUT!

Bye Bye!

I considered it a push. Lesson learned. No more partners.




Within 4 months, clients cancelled contracts with him. 3 months later the business was gone.

At the time I was worried I needed him, when really it was my talent people wanted. I got busier, sooner than I had planned after we split. Turns out he was really holding my back. Got a bunch of new clients that wouldn't work with me before because he was my partner.:laughing:

Jaws said:

Llc or Corporation?

May be that he thinks your hell of an asset and doesnt want to lose you.

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That does not always carry weight over the long haul, trust me.

Advice: do not, repeat do not, move on this until you feel good about it... then think about everything that may go wrong, speak to an attorney about everything that can go wrong. Then actually act if it still is within your sensibilities.

You must have an exit strategy-plan, in writing, if you or he decide to leave the corp/business.
Also clearly defined roles, responsibility and how the "partnership" will effect them. If it won't then your just an employee with paying stock.

If it's run like a true corporation vs a sole proprietor with a corp entity...would be much more inclined to consider, but that's rare.

I am not saying your boss and his brother are not great guys and both smart..... I'm also not aware of what capital you might initially, or in the future, have tied up (invested) in the partnership.

But do note that in equal voting per member arrangement (does not have to be equal voting) that you are starting out as a non-family member... with a possible effectively non equal vote.

Now that may not be at issue if you do not have significant capital invested.... as you could always walk away.

Just a consideration in joining a "family operation".

Thanks for all the replies. My initial investment would be 20g. As you can imagine, that is a big pill to swallow. I guess i will have to se what he's offering before pass any judgments. Thats where my question lies. I dont even know what i should be looking for when he lays it out. I know i need to educate myself, im just looking for a direction to start with
While i appreciate people offering advise on weather or not to partner up, im looking for business oriented responses

SAcarpenter said:

Thanks for all the replies. My initial investment would be 20g. As you can imagine, that is a big pill to swallow. I guess i will have to se what he's offering before pass any judgments. Thats where my question lies. I dont even know what i should be looking for when he lays it out. I know i need to educate myself, im just looking for a direction to start with While i appreciate people offering advise on weather or not to partner up, im looking for business oriented responses

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Is the company in the black . What are its debt's . At least three past tax returns of company . What are they expecting out of this partnership .

SAcarpenter said:

Thanks for all the replies. My initial investment would be 20g. As you can imagine, that is a big pill to swallow. I guess i will have to se what he's offering before pass any judgments. Thats where my question lies. I dont even know what i should be looking for when he lays it out. I know i need to educate myself, im just looking for a direction to start with
While i appreciate people offering advise on weather or not to partner up, im looking for business oriented responses

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Guess, I'm confused........ Most all the responses seem directed to business considerations to evaluate......

Or you tell us, by making you a partner, what are you bringing to the table that will make the present business more prosperous.

What separates business men are the risks they are willing to take on investments. Make sure you fully understand what you are going into, no question is a stupid question when it comes to money. Definitely get an attorney to help you with this process to determine if the risk is worth the investment. If it is, shake hands and make it legit.

Smells fishy to me. Someone needs money I'm thinking. As a business owner I like to maintain as much control of my business as I can. If I believe someone is of great value I'll give them a good enough employment package that they would be crazy walking away from unless there was a big problem between us. At that point I would sure hate to be in a partnership with them.

SouthonBeach said:

As a business owner I like to maintain as much control of my business as I can.

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- supervisors without authority - they are called stupidvisors.

Buying into a partnership with 20k I'd want my voice heard and not be a stupidpartner with all the "Liability" and no real control or authority to counter poor decisions.