Sure, I'll work for you. Now what?

January 8, 2009 9:36 PM

I was just offered a great opportunity but need to flesh out the details. Where do I start?

A friend, Kevin, owns a small business (just himself and a few unpaid interns, no actual employees) and has offered me a position taking over day-to-day operations of the business, allowing Kevin to step back and focus on other things. I'm thrilled, as this business is something I've always been interested in, but I want to make sure I'm getting all the details out on the table. My biggest question right now is how to classify and formalize the business relationship.

What I know so far:

* My responsibilities will include things like interacting with clients, generating new business, maintaining the facility, managing the interns. Kevin will be responsible for collecting payments and paying the bills, but otherwise hands-off.
* I will set my own hours and have extensive decision-making authority.
* I will not receive any salary or commission. Instead Kevin is proposing that we split the business profits 50/50, paid out on a bi-weekly basis.
* I will not be receiving any benefits.
* Kevin is reluctant to set me up as an employee, due to all the legal red tape involved. He would prefer to set me up as an independent contractor, but I don't think the job meets the independent contractor criteria. I have no familiarity with partnerships or LLCs, but that might be a possible way to go.

I know I will need to get an employment lawyer to draw up a contract and hammer out the details, but in the meantime, what kinds of questions should I be asking Kevin? What red flags should I be looking for?

posted by platinum to work & money (4 comments total)

I am not your lawyer, and I am not giving you legal advice. But I am an employment lawyer, and I believe I am in your state. Drop me a line and I'll be happy to help you find someone who can provide the advice you need (yes, you need it).
posted by The World Famous at 10:16 PM on January 8 [1 favorite]

Check your MeFiMail.
posted by The World Famous at 10:36 PM on January 8

Thank you so much The World Famous! Just sent you off an email.
posted by platinum at 11:45 PM on January 8

If I were in your shoes, the first question I'd be asking is "What exactly are the business profits?" The fact that this business has no real paid employees makes me think that there is not much profitability.

My follow-up question would be, "What's in it for me if I take this (non-paying) job?"
posted by geeky at 10:19 AM on January 9