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    3 Replies Latest reply on Apr 20, 2010 11:27 AM by Bridge

    I need advice on forming an LLC with my partner.

    Caron543 Newbie
      Here's the deal. My partner and me are starting up a restaurant. He's a guy I have known for a long time and we are fully aware of our strengths and weaknesses. He has always wanted to open a restaurant but never had the experience. I have been in the business for 20 years at all levels of responsibilities. Basically he wants to put up the money and give me a 51% share to make the final say on any conflict resolution. We have spoke to a consultant on several occasions. He has given us his blessing. He said we have a real good chance at doing this. Now here's my problem. This is kind of funny but the situation is this. My partner has a fiancée that is already trying to tell us how the restaurant is gonna work? Complaining that we should buy bigger, make it "her" way and is basically already trying to get her hands on everything and get me out. He does not want to go along with that of course, realizing that he needs my signature on the loan to get said loan due to my experience, not to mention my credit is better than both of theirs. In his past jobs she would call him at his office and demand that he comes home to keep her company and take her places. She already wants to sell HIS house to buy a new and bigger one over here in the state that we moved out to to start the business. This house is the collateral as far as the loan goes. Not to mention she is pushing hardcore for a marriage within 3 months, they have only been dating for 6 months. This could be a problem down the road. I just want some advice on how to protect myself from her meddling. I realize if she doesn't sign anything then all this talk means nothing and that it's just talk. But what happens if they get married? Am I at risk? Realize that I will probably be doing 75-85% of the work and that I'm fine with this and I wouldn't get this opportunity otherwise due to a lack of assets. The two of us have talked about this and I need some advice on what to put in the contract for the LLC to protect both of us. She is sneaky and manipulative but he loves her. Understand this though. I'm not trying to pull one over on him. I would never do that, but I need to protect myself and him. Could this blow up in my face? Thanks in advance and NO I don't hate women, but she could get me to start, lol.
        • Re: I need advice on forming an LLC with my partner.
          healthnut Wayfarer
          AHHH.. it does not matter if she is not signing anything or if they get married or not. While she is on the scene she will want it her way and will create waves between you both. Then if she does not get it her way, it sounds like she will do all in her powder. The best would be that he loan the money, you do all the work and they both stay out of it.. but I do not think that would be the case. The longer she is around, th more he might start to think maybe she is right. bigger is not always better. when you are just starting out especially. Go with your gutt, you already know where this is going. Unless you like her ideas and what she has to say. Your partner might be saying he is not going to listen or allow her any control, but does he run home and keep her company? and if he going to now gt a bigger place? actions speak louder than words.

          If you do it good luck. I am a woman, and partner running a business.
          • Re: I need advice on forming an LLC with my partner.
            Tracker

            Caron543:

             


            As a former co-owner of a restaurant and a current business consultant, I see red flags popping up throughout your post.

             


            You have a couple of different options:

             

            • find a different partner
            • get a loan through an alternative source
            • create an agreement with your current potential partner to buy them out over a short period of time

             

            I don't know all of your details, but based upon your description, I would recommend you pass on working with this partner unless he dumps the fiancée.

             


            Partnering in a business is like a marriage. You have to assume the person your marrying (and in this case, the fiancée comes along with the marriage) will not change. Regardless of what your partner's fiancee's legal rights may be, she can still make your life miserable. Running a restaurant, as you know, takes a tremendous amount of work. You don't need the distractions and headaches that are already coming from the fiancée before you even begin.

             


            I've seen similar situations in the industry and have never seen them come out well.

             


            Sounds like a disaster to me. Don't let the dream of owning your own restaurant turn into a nightmare.

             


            Doug Dolan

             

            The Solopreneur's Guide

             

            http://thesologuide.com/
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            • Re: I need advice on forming an LLC with my partner.
              Bridge Navigator
              I agree that a partnership is like a marriage. Just relaize that you are getting two partners not one. Have an attorney draft up appropriate documents with your concerns in mind.
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