I am an independent LLC wanting to contract with a company for use of their equipment to both sell for a profit and use for services I will be performing for a profit. Should this be a partnership or employment contract? I would like to work out a contract where they would supply the equipment and then they would get a percentage off profits from both the sale of the equipment and products I produce. Is this the correct way to go? As I expand, they would continue to provide the equipment and continue to get the agreed percentage. What is a realistic percentage to agree to? I'm thinking contracting independently so that I can have full control over my business and then would just rely on them for the equipment returning a percentage of profit to them. Is this a good avenue to pursue or would it be better to be a contract employee where I would get a percentage of sales from them? My issue is that I don't currently have the capital to just be able to buy the equipment at cost and start running the business. So I need to work out an agreement with them to get the equipment up front at no cost and provide them with a return. They will also be providing various other start up costs. Thx
It cannot be a employee contract because equipment you sell on their behalf and you produce using their equipment belongs to them.
You need two separate contracts. One for the use of their equipment and facilities. The second would be for you selling their equipment.
You need to talk to a business attorney about the details of your business plans. Do not try this on your own. Do not sign a contract before you have talked to an attorney. You could lose everything. If they make you sign a noncompete contract, it will prevent you selling your product for a period of time (usually years) and miles within their location.
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