My advice BEFORE you walk into a Partnership; establish an understanding and a Partnership Agreement
(it will save you money today, and save you certain misunderstanding down the road)
Best way that I know of, and I’ve been doing this for a long time, is to sit down with whomever you’ve chosen to enter this business with.
While everyone is happy and excited about your vision and the future of your successful business, you need to stop and do the following with your intended partner. see fully in www.laniacpa.com
Each of you, INDIVIDUALLY and separately, write down what it is that you EXPECT from this business and each other.
What you expect to put into it…
What you expect to get out of it…
What you expect your partner to put into it…
What you expect your partner to get out of it.
Do you expect to work 80 hours a week and your partner thinks that this is a part-time venture?
Do you expect to delay a salary until the business is profitable, but your partner expects a full salary from day 1?
Do you expect your spouse to “help out” in the business, but your partner’s spouse is unavailable to do the same?
Or, worse yet, your new partner doesn’t particularly like your spouse and doesn’t want him or her around?
Work out these things today, before you open the doors.
Now you’ve both separately listed your expected contributions and demands on this new business.
Now, you both (or, all three…etc) sit down and share what you’ve written.
Compare what each is willing to put in and expects to get out of the partnership.
Hash out any differences now.
NOW, my friend, you can visit an attorney to get the partnership agreement drafted.
Making sure that it’s legal and it’s enforceable.
This will substantially cut down on the attorney’s time and YOUR bill for his services.
Joseph S. Lania, CPA
joe@LaniaCPA.comCPA BROWARD CPA BROWARD COUNTY CPA COOPER CITY CPA PEMBROKE PINES CPA DAVIE CPA SUNRISE CPA QUICKBOOKS CPA AUDIT CPA PARTNERSHIP TAX ACCOUNTING ACCOUNTANT EXPERT LOCAL TRUST ESTATES LANIACPA JOSEPH LANIA CPA