Partnership in Existing Business

Asked almost 3 years ago - Lake Worth, FL

What is the name of your state (only U.S. law)? Florida

I have a few questions but first ill give you a little bit of what is happening.

I met a woman who has a company but she does everything herself. She is wanting to expand but can't do it without help. I have met a few times with her and she is wanting no monetary help, all she needs is someone to run the office while she sales. so my questions are the following.

1- How do I build a partnership with someone who alreayd is in business?

2- Should I open a LLC and her sign over 50% of the company to my company?

3- If there are old debts im not aware of is there any way when im doing the contract that i would only be liable for debts incurred from the date of signing and on?

4- Your advice on what I should do if none of the above can be done?

5- How would I draw my pay on what is left after paying all the bills, and would I have to open a business account under my new business or if your suggestion is to partner into her business do i need to have my own account also?

For now all i have are these questions, but if you can think of any troubles i might encounter and guide me it would be much appreciated.

Thank you very much in advance this website is a lifesaver.

Peter

Attorney answers (4)

  1. Marshall C Deason Jr.

    Pro

    Contributor Level 20

    1

    Lawyer agrees

    Answered . You are answering all of the right questions for someone who is going to buy into an existing business. The way that the business is currently structured and the current financial statements of the business will determine the answer to your questions. To provide the owners protection from personal liability, businesses in Florida can be structured as corporations, limited liability companies (LLCs), or limited liability partnerships (LLPs). You should consult with an experienced business lawyer in your area to help you determine the best type of organization for your business and to answer your other questions about going into this business venture

    Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does... more
  2. Ron Renzy

    Contributor Level 9

    1

    Lawyer agrees

    Answered . You should consult with an attorney in order to have agreements drafted. It is not a good idea to enter into any business arrangement without a written agreement.

    This answer is not to be construed as legal advice and is only based upon the information provided. No attorney... more
  3. Barry A. Stein

    Pro

    Contributor Level 18

    1

    Lawyer agrees

    Answered . You need to consult with an attorney to determine what is the best way to handle this business arrangement. Giving you specific advice in this forum would be a mistake. There are legal and tax effects to stock transfers that need to be considered. Allocate some of the funds you would allocate to the business for legal advice and go get that now.

    The answers given are limited to the facts as given and presumed by the answer itself. Without seeing actual... more
  4. Ron Renzy

    Contributor Level 9

    1

    Lawyer agrees

    Answered . In addition, you should consult an accountant before entering into any arrangement as there may be significant financial consequences. Talk to a lawyer and an accountant before making any moves here.

    This answer is not to be construed as legal advice and is only based upon the information provided. No attorney... more

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