I am a special events producer that had an opportunity to buy out a 45 year old company recently. The company was in a decline which means a lot of work to re-build and grow. So far we've grown 45% per year winning awards for our special events and show productions, however, I am still learning what it means to be a business owner.
The stress and amount of work involved in not only servicing clients, but handling HR, accounting, cash flow, marketing, sales, on top of regular business issues and responsibilities is extremely overwhelming. I have made some decisions, such as hiring more staff with the hope of an increase in gross revenue, to only go further into a dept and cash flow situation. If I had the right person on-board with the right business experience, this may have been avoided.
My thoughts are to find a business partner that is soley interested in the management and growth of the business so I can focus on the clients, training of staff, creativity, quality control etc.
Instead of a partnership (which is definitely a bad idea), why don't you form and S-Corporation or LLC. If you want to work with someone, have them form their own S-Corp or LLC and use them as a sub-contractor.
Creative Thinking, Innovation, Creativity Training
#1 by TaxMaven on May 31, 2009 - 6:34 am
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NEVER take a partner. You can hire someone to do a lot of this stuff or you can outsource it. Partnerships are a recipe for DISASTER. You could partner w/ a guy & he could lose his stake in the biz in a divorce. Then you are partners w/ his ex-wife who hates your guts b/c you were his friend/associate. You get end up w/ a tax lein against your business b/c he screwed up his personal return & owes big…I could go on for an hour here, but you get the point. Bleck, bleck, bleck. Just don't do it!
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#2 by jdkilp on May 31, 2009 - 6:48 am
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Instead of a partnership (which is definitely a bad idea), why don't you form and S-Corporation or LLC. If you want to work with someone, have them form their own S-Corp or LLC and use them as a sub-contractor.
References :