Welcome gatsby. It is great that you have many years of experience.
As you know, a partnership is an association of two or more people as co owners of the business.
At this point, you should talk to a lawyer and have a formal partnership agreement or contract prepared.
The agreement should include:
Contributions by partners
Who will be in charge of day to day details
Books and records
Division of Profits (50 /50 or something else based on ???)
Sale of Partners interest
And so much MORE, the lawyer will suggest to prevent problems concerning the business.
Good luck, LUCKIEST
Thanks for your prompt reply Lukiest,
But maybe I wasn't being too clear with my question.
I was curious about what kind of corporate structure we should have in order to have 50-50 ownership of the company.
Should we form a new company, with both of our names listed as partners or should I join his and ask for half of his shares?
One thing to keep in mind though is, he already has been running his business with his company and there's some financial activity in his sheets so it may get a bit complicated.
gatsby, Now is the time to talk to YOUR lawyer and or YOUR accountant.
Yes I know, lawyers and accountants cost. However, the cost NOW could be small as compared to problems later.
I am moderately experienced in business- I have about 10 years of experience in internet marketing and own an S-corporation.
Recently, my acupuncturist has proposed a business partnership to me. He wants to sell his health products on the internet (which works well) and eventually open up various offices throughout the country. I see the potential in the business and actually considering his offer.
So far, we seem like a good match. And he needs me more than I need him to accomplish his goal:
My strength/weakness: versed in internet marketing, fluent in English, connections / no product
His strength/weakness: has a product / computer illiterate, can't speak English, no connections
My question is this:
I'd like to be very clear about our business terms before we start anything.
I'd like to ask for a 50-50 partnership so I own half of the entire business. What would be the best way to structure to do so? By asking him to give me half of his stocks of his s-corp? or should we create a new corporation and be partners? or should we formulate a contract so we do profit-sharing of the profits? (but would I be entitled to the company when we sell it?) Are there any other options?
He currently runs a practice and has an idea how he wants to execute his business, and started some branding/website construction himself.
I don't think he's doing well with the business though, and have an impression he is bad with bookkeeping.
Any suggestions from an experienced businessman would be greatly appreciated!