Ask MetaFilter questions tagged with partnership

Legal and Tax Ramifications of Paying Subcontractors

Mister_A — Fri, 17 May 2013 08:17:43 -0800

I've been doing a fair bit of freelance work, and it's to the point now that I have to sub out certain tasks that are outside my area of expertise. I don't want to make my clients cut multiple checks if I can avoid it–want them to just deal with me to keep it simple and neat. However, I do not want to be on the hook for income that is actually going to a sub. What to do? Details:
I do not own a corporation or partnership or anything like that.
I live in Delaware County, PA (10 miles from Philadelphia, 10 miles from Delaware).
Most of my freelance business is in advertising; some in marketing consulting.
I am unlikely to be able to afford an attorney.
I have a pretty good friend who is an accountant, I am asking him as he provides services to small businesses.
I am tight with my subcontractors–known them for a long time, work well together, and def. want to pay them in a timely and fair way.
I am willing to pay fees and do paperwork to form a legal entity, but must keep it within reason.

Thanks!

How do I help others see my partner as an equitable and true parent?

livlab — Tue, 22 Jan 2013 19:04:23 -0800

I am currently 21 weeks pregnant and my wife is not getting the attention, congratulations or support I get from others. How can I help others see her as a parent now and when the baby comes? We've have been together for 10 years and have had a truly wonderful equitable relationship where we work hard to balance our home and personal obligations plus our professional careers, and since becoming pregnant that has not been different. We see this moment as me taking some physical/emotional responsibilities/unknowns and her taking on some other emotional/practical responsibilities/unknowns. This is a gross simplification of course - my point is, we consciously make an effort to be supportive of each other.

While each of us represents 50% of the parenting equation, this is not how the world sees HER. She’s a mom to be, and I expect people should act towards her no different from how they act towards me. I have asked friends who are fathers about how they were treated and perceived while their partners/wives were pregnant and many indicated a feeling of being “lesser than”. Some indicated that feeling/treatment carrying over beyond pregnancy and really framing what the fatherhood meant for them.

I try to do things to make this journey special for her — I leave her cards and notes asking how she’s doing/thanking her, talking about her/our child, when we are together in the doctor’s office I refer to her as mama (which is what she wants to be called) and talk about her/our baby in those terms. I ask her to sing and tell stories to the baby in the belly to have it get used to her voice as much as mine. Ultimately, I feel like that is not enough because it’s just me and nobody else, and her experience of this pregnancy (and upcoming motherhood) could be much better. I love my wife dearly and want her to be deliriously happy all the time; right now I’m just trying to make it suck less. I feel helpless.

Please note anything you might have done as a mother/father to include your partner/spouse, and what your impression was about how they were treated during pregnancy and childhood. Thanks in advance!

Figuring out a partnership of sorts

lilacp — Sun, 25 Nov 2012 16:23:17 -0800

What kind of contract would I write for this? A friend recently started a business and wants me to come on as a founder/partner. The initial plan was for me to take on a project as a contract, but she liked my ideas and is considering implementing them, so she would like me to join the founding team. However, the business is already registered and therefore cannot be registered as a partnership. She's asked me to draft a contract and I'm kind of confused as to how to word it or what kind of contract to draft. What kind of contract or partnership agreement would I use in order for us to work together with each of us having some form of ownership?

Do we "need" love?

Anonymous — Tue, 04 Sep 2012 17:41:05 -0800

Do we really "need" romantic love in our lives? Is there a magical point of self-love where one just attracts love from others? After having the book "Feeling Good" by Dr. David Burns recommended to me many times, I read it and found it helpful in some ways. (I know it's a popular recommendation here).

I have had clinical depression for over 22 years (I'm 35 now), and was treated successfully with medication at age 19. Over the past year I noticed that the medication was losing its potency and that the depression had returned. I am now seeing a psychiatrist regularly; the depression is not as severe as it had been in my past, so CBT-related approaches are working quite well for me.

However, I am struggling with Dr. Burns' statement "Oxygen is a need, but love is a want. I repeat: LOVE IS NOT AN ADULT HUMAN NEED!" (Author's caps). It's perversely true for me, almost in a defeatist way. I know that the message is that self-love is a priority (the concept that one has to love oneself first; romantic love is secondary to this.)

Part of me really wants to believe that I really don't need love from a romantic partner; that the support from my friends & family are sufficient. My psychiatrist tells me that in fact, romantic love and companionship are basic human needs. This has become very frustrating for me; all I want to do is shut off the part of my brain that wants to date and have a boyfriend. To me, romantic love is basically a matter of luck, and at this point seems about as achievable to me as winning the lottery.

All I want is just to be happy with my life in this moment, being single. I get a lot of advice from people saying that once you stop looking and truly love yourself, you will simply attract love into your life. Unfortunately this has not happened to me, and any attempts to "put myself out there" have made me some great friends, but absolutely no romantic interest.

Do we really need romantic love/partnership in our lives? Am I just not trying hard enough to get better and love myself more? How can I shut off the part of my brain that wants a partner, and just be happy alone? I feel like if I "put myself out there", I'll seem too desperate and needy, but not approaching anyone and just "being approachable" doesn't work for me at all.

"In Sickness and Health" might not have been said but was always implied

MCMikeNamara — Sun, 12 Aug 2012 22:48:00 -0800

He's sick and relying on me. I can't always be perfect in my responses or my inner most thoughts. Now what? So my partner is fairly seriously ill, dealing with liver disease. Earlier this year, it seemed like we were 'playing it safe' by taking it seriously -- now, after ups and downs this year, we're back to 'expediting for transplant' (which, despite how it sounds, really just means that, since he's in the hospital for the third time in as many months, while they deal with the swelling and infection for which he was admitted him last week, they're doing as many of the tests as they can that would lead up to putting him on the transplant list, so, if as his other organs (namely: kidneys) can't keep up the stress, then we'll be as ready for the liver if one becomes available.

I'm not sure the details matter. What I'm trying to say is that it's a lot.

And though 90% of the time I feel like I'm dealing well with it, it's the type of situation where that 10% just feels too important to mess up, and I want to tackle it head on.

And most of it, I understand. I'm not entirely healthy either so have to take care of myself. Fortunately, everybody in my life understands that and if I need to take a breather and not be at the bedside 100% of the time, I've been able to get away with that. And if I don't always keep the best composure, that's okay too. I'm flawed and in some ways, in this situation, I'm trying to accept that I'm doing the best I can. So that takes care of about 8 of that 10%.

But question #1 remains: How can I deal with the fact that I'm not always going to be the best partner I want to be when so much feels like it's riding on me doing so?

The other 2% is harder to explain, but here's where I'm at with it.

"This isn't what I signed up for" is a phrase that keeps coming up, though not really from me. I mean, I realize that it's, for the most part, a true statement. But eventually, I think all partnerships that take some sort of traditional 21st century romantic model, whether or not they actually can/do get married, hinge on the 'for better or for worse.' And I never felt that we were any different. Still don't. But in his less strong moments, he'll say it aloud to me, and he either hints or tells me that I'm And I feel completely confident in telling him I'm not going anywhere, and that's that.

I realize that he's saying it because, in some part, he needs to know I feel differently, and I don't resent telling him that. But I do worry that I'm somehow not showing him this with my actions, and that this is causing him to feel this way.

We don't have a strong support network locally, but we do have great friends and family, and I, especially, am blessed with people who, when they check in on his health, also check in on my well being. And I always say I'm fine when I am, and if I'm not, there are those I can tell that to as well.

But the longer this goes on, strangers I meet through the hospital or acquaintances in my life who learn the details start to see me as "the put upon partner", and though a part of me appreciates people I don't really know treating me like I'm making a noble sacrifice, I feel like crap everytime it's mentioned. Like I'm some sort of fraud who can't quite live up to the standard they're setting.

For the most part, I do clear that bar, and, to be honest, I'm glad to do so. Taking care of him is something I've always been glad to do in anyway I can, and I've always felt like it was well worth it. In an odd way, this isn't even a new feeling because our whole relationship has always been, from an outsider's perspective, 'unbalanaced' as far as money or resources go. I'm the one who works full time and pays for most, if not all, expenses. (It's ireally surprising how easy for two people to live on one salary as easy as it is to live on two.) And though that part of the supposed bargain was that he 'kept the home', it's never really been that simple, and I've never wanted it to be or expected anything else from him than what he brought to the table. And now as that imbalance has become even more noticeable, I've been happy to pick up the slack. Just because I'm also doing what he used to do doesn't mean I want to be with him any less. That was never why I was willing to do what I did for him in the first place. Taking care of myself and him just feels right.

But the more I'm complemented for doing so, the more I come to resent it. Not him, mind you. Not even the situation. But it just feels so disingenuous. Because my only response is "of course, what else would I do."

But some days, some long days when I'm tired, and even some days when things seem to be going well, I'm pissed about the whole thing. Not loudly. Not entirely. But a part of me is sometimes pissed and wish it would all go away. And the more people complement my supposedly selfless acts and strength, the more I seem to focus on those (rare but non-zero) quiet times alone in my head when I just want to toss it all away and be done with it.

As I try to explain it now in words, I know those feelings aren't real. I think about a hope to walk away from it all and it's a totally fake wish. I can't imagine doing it in any real sense. Maybe I can imagine waking up with amnesia in a "Eternal Sunshine" type way -- only by forgetting his existence could I walk away from him now. But even those type of fantasies I don't think all the way through to any sort of end. I can't even imagine what that happy, easier life would be on the other side; I just occasionally wish I had it.

So, #2, how do you deal with your imperfect feelings when you're going through a rough time?

(Apologies and my appreciation if this was hard to understand yet you made the effort; I'm afraid if I don't post it now unedited, I'll wimp out and not do it at all tomorrow.)

cat fight

ferngully — Tue, 03 Apr 2012 13:08:15 -0800

Trivial "problem" filter: Significant other and I had a fight over how he treats his cat. TL, DR at the end.

Background: I'm a late 20s female, he's an early 30s male. We've been together a couple months shy of a year. Things escalated to a very intense emotional pitch in our relationship very quickly. He has 3 roommates, and a cat.

We disagreed rather vehemently the other night over how he takes care of this cat.

The cat is very overweight, and whenever she meows, he just feeds her. The fight started because I said the cat might want other things, like to play, or go outside, or be pet. He said, basically, that he knew his cat and that his cat was hungry. Indeed, the cat did start eating. HOWEVER, the cat lives in one small upstairs bedroom and never leaves that room. Two of his roommates have dogs that the cat is afraid of.

While we were having this discussion, which would eventually escalate into me (sort of) calmly leaving his house after I'd planned to stay over, the cat scratched me, hard. (I was just petting her and it was like a jekyll/hyde thing.)

And after the cat scratched me, my boyfriend kept petting her and saying, "See? She's just a nasty creature," or something like that.

That was confusing/upsetting to me, because I don't believe some animals are "just bad;" I believe that animals are taught what's acceptable (with some exceptions, I'm not a hardliner.) So, I was upset because I thought he should not have positively reinforced the cat scratching me.

I was also upset because I think the cat is legitimately neglected. Now I guess is a good time to mention that she has worms. Lots and lots of worms. I told him he needed to take her to the vet to get them cleared up. He disagreed, saying he didn't have enough money to take her to the vet.

This is sort of true. He is a freelance writer and doesn't make a lot of money. But he has money for other things. For example, a few weeks ago he spent 30 dollars on tea. On the other hand, he goes without a lot of stuff that he wants, owed a lot in taxes, doesn't have a car, etc. He isn't completely irresponsible. But I feel like he should either take better care of the cat or give her to someone with the means to take care of her. He points out that if he just takes her to the pound or something, she may be euthanized. So I'm not for that option.

Although he disagrees and seems to be attached to her, her life seems to me to be below the standards of acceptable petdom. And beyond that: I didn't say this, but I think the worms all over his carpet are really gross and it really makes me depressed to visit him because I have to see them. It also makes me worry that he neglects the relationships around him/will one day take me for granted. Also that he wouldn't be the best nurturer should we decide to have kids.

I like this guy a lot otherwise, even love him. But this bugs me and I don't know what to do.

So my questions are:

1. What should I do about this? My mom said that if it bothers me so much, I should just take the cat to the vet myself. However, I don't think that's my place. Maybe it will set a precedent of me taking on too many of my boyfriend's responsibilities.
2. I've only ever had indoor-outdoor cats, so I'm open to the possibility that this is a clash of cat-cultures. For indoor cat people, how do you take care of your cats? Is one room enough? Do you exercise your cats? When you go out of town, do you just sort of put a big pile of food out for your cat and leave?
3. Do you consider this to be a red flag, personality- or compatibility- wise? Or am I blowing this out of proportion, and it's none of my business to begin with? Or both?
4. I have a history of ending relationships with people I really love over kind of trivial things. My therapist suggested that it's a way of assuaging my insecurity: if my SO always takes me back then he must *really* love me. But it puts a lot of stress on my relationships and if they do end, I grieve and grieve and grieve for months after that person has moved on. Is this one of those trivial things? This is not my first relationship after I realized that I do this, but I'm on guard about it because I don't want to break up.

TL, DR: My boyfriend's standard of petcare is much, much lower than mine, and it bothers me. Discussion ended badly. History of intimacy problems (mine). What now?

Thank you for your time, askmefi.

Should we get married?

Anonymous — Tue, 08 Nov 2011 09:32:01 -0800

Should we get married? I'm a U.S. citizen (female). He's Canadian. We've lived together for two years now (have a lease together) and have integrated many other aspects of our lives. We talk about long term plans (house, kids etc), but neither of us are sold on the idea of legal marriage. Here's why:

I grew watching my parents who got married and stayed together "for the kids" make themselves miserable for 22 years. In short, the constant fighting and misery that continued in order to keep the marriage together has given me a rather jaded view of the whole institution. Sure, some couples are make it and are happy. Half of them don't. I still get those warm, fuzzy feelings watching chick-flics, but when I think about marriage as an institution the romanticisation (sp?) of it fades really fast.

He comes from a culture where many couples don't get married. They still have committed partnerships and families, but the legal marriage part (seen as religious) has largely gone by the wayside.

Neither of us is religious so that's not an issue and neither of our parents care whether we marry or not.

Plus there's the issue of supporting a political institution that is not open to all couples based on their sexual orientation and has historically been used as a means of repression.

But, historical issues aside, our main issue is immigration. He's currently in the U.S. legally on a student visa. But he's thinking of leaving grad school, which means that if he can't get a job, he has to go back.

In our view this unnecessarily and arbitrarily complicates our relationship. We would rather not have to worry about whether or not we'll be forcibly separated every time one of us changes or loses a job depending on which country we're in.

Thankfully, Canada offers a lot of protections for domestic partners. So I can legally emigrate there to live with him if need be without getting married. No such luck in the U.S.

So if we want to stay in the U.S. is our best option to get married? And if so, where? I know the states all have different laws regarding marriage and divorce (not that we're planning on divorce, but we're both rational enough to realize that state law can outrageously complicate things and make breakups more miserable than necessary (a la my parents)). Do you know which states have the most flexible marriage and divorce laws? I also know some states have different legal structures they force on you when it comes to shared property etc. Do you know which states allow you the most leeway for making those decisions yourselves?

Mostly what it comes down to is that we'd really like to have choice in shaping our relationship as it fits best for us. Our different nationalities and the laws regarding recognition of partnerships are making that difficult. We'd appreciate any guidance you can give.

Thanks a bunch.

Asset legal ramifications of registering domestic partnership in Minnesota

lpcxa0 — Tue, 08 Nov 2011 09:26:48 -0800

Asset legal ramifications of registering domestic partnership in Minnesota My girlfriend and I are considering registering as a domestic couple in Minnesota due to various reasons including insurance coverage and hospital/medical reasons. However, I'm having trouble figuring out exactly what legal ramifications are going to come of this because as far as I can tell, property and assets would not be divided upon a split like in a conventional marriage. Other factors to consider also seem to be in a grey area compared to a conventional divorce. Can anyone advise on the legal ramifications upon termination of domestic partnership in terms of assets?

We are not planning to split, but prepare for the worst, hope for the best. We are also a heterosexual couple. We do plan on marrying one day, but that day is a few years away.

Let me not to marriage of true minds admit impediments . . .

exlotuseater — Sun, 31 Jul 2011 12:47:50 -0800

Help me write a literary and science-y marriage "sermon" for some colleagues! I have been honored with the role of marrying two colleagues / friends of mine a week from now. I have the standard “Internet Minister” credential (I was ordained as a minister of the ULC in 2002, and so can legally marry people in New York State). The groom is a public school science teacher and the bride teaches college composition. (why this matters in a minute)

The ceremony is going to be fairly simple, with the couple having written their own vows, but I am going to give a short “sermon” beforehand on love and marriage. I met with the couple a few weeks ago, to get a sense of what they wanted, and the only caveat was “no mention of the word ‘God’ in the sermon.” This is fine with me . . . none of us follow a specific tradition, but rather have eclectic sets of overlapping beliefs.

I want to speak about the value of honoring a committed relationship in view of family and friends, of partnership and journeying through life and growing with a partner . . . this sort of thing. I also want to make it “literary” and perhaps a bit “science-y,” a respectful nod to the bride and groom’s interests . . . and many of the attendees will be other colleagues (university / English grad students) of ours. I’m not looking to show off, but rather to use a few points to underscore the ceremony and what it means to the participants, maybe a little tongue-in-cheek.

I am looking for suggestions of passages, bits of verse, or other texts that speak to love, relationships, marriage, partnership, teamwork, et cetera.

I immediately thought of Forster’s “Only connect! That was the whole of her sermon. Only connect the prose and the passion and both will be exalted, and human love will be seen at its height. Live in fragments no longer” and the section in Kahlil Gibran’s The Prophet that deals with love and marriage.

I’m looking for other suggestions of literary ideas that support some of the ideas above, and maybe some science-y things that show the history and value of “partnering” or pair-bonding.. The science aspect can be as wild as you can think of . . . I'm not averse to explaining Rayleigh scattering or quantum entanglement (metaphorically, of course) if it will add something.

Bonus points if you have officiated a marriage and have any other tips and tricks. We haven't gone over the "flow" of the ceremony yet . . . we're doing that the night before, at the rehearsal.

Help me deal with a difficult business partner

Anonymous — Tue, 26 Jul 2011 15:04:51 -0800

I've started a company with someone that I have trouble dealing with. What should I do about this business relationship? More details below. Anonymous because he reads this forum and might figure out that this is me.

About six months ago, an acquaintance, M, approached me about starting a company related to some work I am doing in graduate school. We incorporated, and both put money into legal fees, software, getting a domain, etc.

We both have a few other projects going on, so things have been moving slowly. I'm still in graduate school and have some side projects; he just finished his (unrelated) masters' degree a month ago. He also has a consulting business on the side.

We are now building momentum. I have the technology based on my graduate school work, he's a salesman type, and now we have a possible third partner (an old friend of mine) who can do the programming.

I'm struggling because I'm having a lot of trouble getting along with M.

Being around him is emotionally demanding. I'll email him and say, let's talk this afternoon about xyz. And then he'll call me right away, because he knows I'm online. If I don't answer the phone, he gets upset. He wants to talk for hours about his ideas, and I can't get any work done (for school, which I still attend) or on this project.

His concerns have to be worked around, but mine are negotiable. He has some hobbies that he spends a significant amount of time on. When he is busy with them, the time away is non-negotiable. If I have a conference for graduate school, he says things like "You can still work during the conference, right?" He has a consulting business and has to travel for work, but isn't willing to change his travel schedule.

He's very touchy and defensive about his competence. He pretends like things are his idea when they are not. He gets angry when his ideas are questioned.

He's a salesman type, very persuasive, very good at getting his way. He's from an extremely wealthy family and has had everything he wants in a material sense. He also says very snobby things that annoy me, like "Who would wear that awful suit?" or "Ibiza is so last year -- you have to try x instead".

To me, he's demanding, narcissistic… just exhausting to be around.

On my side, I tend to avoid him when I get stressed out. I sometimes can't deal with talking to him and I'm hard to reach.

I've talked with M about this, and he doesn't seem to get it. He tries to empathize and is nice about it, but nothing changes. He is from a non-Western culture, so I try to be sensitive to those issues, but he was raised in Europe... so it's not entirely a cultural thing.

It's a great business opportunity and I'm excited about the prospects for the company. I'd hate to miss out on the opportunity due to interpersonal issues.

Another question is whether I should leave graduate school. I am a bit frustrated and tired of my program, but leaves of absence are not well thought of. I could leave, but I might not be able to come back. He has said nothing on this point, other than "do what you have to do".

My questions:
- How do I get along better with this person?
- I have a lot of other projects going on… graduate school, side projects, etc. Should I do this at all?
- I'm afraid that he will push me out of the company as this new person gets more involved. I'm also thinking it might be perfect to put them together and then leave the business.
- Have you been in a situation like this? How did it end? What helped? What do you wish you had done?

How should two grown-ups share a coffee can full of quarters in our treehouse?

Anonymous — Fri, 24 Jun 2011 14:34:41 -0800

How should my brother and I manage a new joint slush fund? My brother and I have invested in a venture that is going well (knock wood etc.). We have all the legal stuff in place to govern how we are paid out, with the exception of a new hiccup we'd like to create for ourselves: we'd both like to set aside x% of our earnings into a joint "slush fund" (for lack of a better term). Depending on how big it grows, this money could be used for any number of activities: a fun vacation together, or perhaps a small investment in a local start-up, or to hire a freelancer to try to build that computer game we've always talked about, or as a small portfolio of a few stocks we each pick for friendly competition against each other, or (and maybe most compellingly) just to pay for all of our families' meals out together so we never have to deal with the "is it my turn or yours" nonsense.

We tend to think very alike on things, and are both equally excited about this idea... but a little lost on how we might be able to put it in place. Should we create a tiny LLC (since this fund may go toward the freelancer, for example, or other actual investments)? Or should we just create a joint checking account? Or is there an even more elegant approach that we're not thinking of?

YANML, YANMA, etc.

Thank you, hivemind!

My godfather has offered me a partnerhip, help!

mikeanegus — Thu, 03 Feb 2011 16:43:17 -0800

My godfather has offered me a job in his company. I am unsure what to do and need help! He and a single partner run a company that is an intermediary between the dairy industry and the supermarket / grocery industry. I have been asked to step in as a partner because he would like someone new and dynamic to help the business grow

Furthermore, his partner will be retiring this year and my godfather would like to step away from the business within a couple of years as well.

He says that the business brings in about $50,000 a month and that initially I would be earning about $10,000 a month after the first year.

- What questions should I ask?
- What should be my concerns?
- What are the pitfalls?
- Has anyone been through a similar experience?

How best to assume more control in a LLC?

Anonymous — Tue, 09 Nov 2010 10:02:13 -0800

How best to assume more control than the other members of an LLC? I have started a member-managed LLC with two other people. We have not yet signed an Operating Agreement, but that is on the horizon as things are starting to come together.

As we have begun working together, it's become clear to me that my skills, knowledge, experience, and capability pertaining to our business outweigh those of my partners.

Not only am I having to do all of the organizational operations to make the business function as a business, such as the finances, but I am finding that I have to teach my partners about both how to do their jobs (i.e. the technical aspects of what we do) and how to develop their responsibilities into the formalized processes that will allow us to expand and grow as a business.

It seems that the scenario would make more sense if I simply did not have them as partners in the LLC and instead just hired them as employees, except that I haven't the capital to do that. It will take some to-be-determined timeframe before the business will start generating enough revenue for anyone to actually get paid and because of the nature of the business it requires virtually no up front expenditure as long as we aren't paying ourselves.

So I feel like making them partners has been a good way to motivate them to be a part of the business without anyone getting paid now, with the expectation that if/when the business becomes successful we will all start getting paid. However, due to the disproportionate experience, I feel like I should have more control over the overall management decisions, and ultimately, when we are successful, get paid more, at least until my partners have made enough improvement and gained the experience necessary to operate a little more independently.

I am looking for advice about how to, first off, approach this with them in a way that doesn't undermine the skills and capabilities that they do bring to the table, but also more importantly, how best to actually go about structuring the LLC in such a way that allows me this higher level of control and authority.

If I haven't included enough information, or you have any questions at all, please do not hesitate to contact me via email at: metafilter.anonymous@gmail.com - I would love to discuss the details further, if anyone is interested!

My liberal arts degree did not prepare me for this.

jlowen — Tue, 02 Nov 2010 14:37:32 -0800

I run a very small professional services firm. The firm has had a great first couple years and has built up a solid client base and some decent cash reserves. I have long been considering bringing on my first partner to expand the kinds of services we can offer to our clients. Now that I have found the ideal candidate, I find myself struggling with the details around how to structure the partnership. Any recommended books or other resources to help guide a very small growing firm? The firm can not afford another principal salary, so the new partner would essentially need to earn their own keep and recruit new clients. I also don’t want to tap in to my reserves in case I need to cover my pay during any future dry spells. I can provide office space and some of my assistant's time to help the new person get up and going.

What I don’t understand are the different ways to structure a parternship and the relative pros and cons of each. Obviously I don’t want to put in jeopardy what I have worked so hard to build, but I also don’t want to alienate my new partner by being too stingy.

Any advice? Any resources that might help me? I’ve read this book, but it seems to be geared towards a much larger firm than my little 2 - 3 person operation.

Looking for advice starting a web development company?

doomtop — Wed, 06 Oct 2010 10:43:44 -0800

Looking for advice starting a web development company? I am planning to start a web development company with two other people. We are still in the initial phases of actually forming the company, meaning we are writing the business plan and deciding how to structure the company and the actual registration process, etc.. We are based in Vermont, but none of us live in the same city.

I am looking for any recommendations/suggestions/tips from people who might have done something similar as far as what we should be thinking about, or things you would have liked to have known when you got started.

What we pretty much know how to do already is the actual work. We each do something different that is part of the process, i.e. one of us gets clients and does the web design stuff, one of us does graphic design stuff, and one of us does the backend coding stuff. But we are going to need to be doing a lot of work outside of that to actually make the company run. Stuff that isn't design/development work!

Additionally, since we are in different locations, we really need to get some sort of web-based software to assist us in the actual collaboration on projects, since we won't be able to have face-to-face meetings on a regular basis. I have experience in project management, but I have never worked with a team that wasn't immediately physically available, so we need some way to make up for that.

We have all been friends for some time, but have never really worked together professionally. We just realized that we each had a piece of the puzzle to web development and decided to combine forces. I figure that will be a factor in how we should choose to manage our projects, since we aren't simply moving to a web-based facilitation of an existing process, we actually need to learn how to collaborate together at the same time.

Partnership agreement drafting

samengland — Tue, 28 Sep 2010 16:08:20 -0800

Partnership agreement drafting in the UK I'm in the process starting a business in the UK and have formed a partnership. I need a partnership agreement (deed of partnership) drafted on a budget. We intend to split the ownership/profits 80% / 20% - this is the main reason we need something put in writing. We also intend to dissolve the partnerhsip in around a years time to create a limited company. Does anyone know of a reliable solicitor/lawyer capable of drafting this kind of agreement quickly and easily - most importantly - on a tight budget?

Thank you for your recommendations, and help.

How do I form a quick and easy business partnership with a friend?

[insert clever name here] — Tue, 22 Jun 2010 13:22:50 -0800

How do I create a business partnership with a friend that both best protects our interests but also is quick and easy, for a project we're not sure is going to last (hence, we don't want to put a lot of effort into the planning - yet.) So a friend and I want to try our hands at working to create and sell some website templates through a paid template site as a way of making extra cash. At the moment we are just getting our feet wet to see if it's worth investing out time. I've known her for a long time and I trust her, but I'm also aware that friends and money don't always mix well. So I'm looking for advice on how to ensure that neither one of us has the chance to screw the other. But I also don't want to spend a lot of time creating a business entity for something that we are just dabbling in and that may not work out. Is there a solution, both legal and how we would handle working together and managing our account? As for the details, she plans on designing and I plan on developing with a 50/50 split. Payment, if we get that far, is to a paypal account or by check if over a certain amount.

If we has this out in writing and have shared access to the template sites account, is that enough? If we sort it out in writing, can we worry about the legalese later? Would a joint checking account for payment via paypal make sense, and if so, do we need to create a formal business entity?

DIY or partner up?

NekulturnY — Fri, 02 Apr 2010 08:27:43 -0800

Consultancy & partnership: when to open partnership tracks? Suppose you have a consultancy business (PR, law, project management, business consultants, any business that is primarily about selling "billable time").

What is the most lucrative moment to open partnership tracks? Should you look for partners from the beginning, or should you only do it when you have built something of a brand and there is no more organic growth possible?

How do you value the brand - ie how would you structure the partnership? Is there any literature about this sort of thing?

Can an LLC member also be an employee of that LLC?

entropic — Wed, 24 Feb 2010 05:43:50 -0800

Can a member of an LLC (filing as a partnership) also be an employee of the LLC? Details inside. I am one member of an LLC. There are two other members. One is another individual, and one is a limited partnership. Our LLC files as a partnership (because one member is a partnership).

Can I (and the other individual member) be employed by the LLC (i.e. receive a W-2)? FWIW, not trying to do anything shady - we perform most of the functions of the LLC.

Can we make this work?

yawper — Wed, 27 Jan 2010 10:07:44 -0800

Turning a close friendship into a business partnership: is it doomed? Are there success stories out there? What can I do to ensure this works? I am considering starting a business with my best friend of 18 years. The two of us have a mutual interest/talent that we think would make for a successful business. We get along extremely well, have great communication, and have never had any serious disagreements. We have similar values and family/educational backgrounds. There is nothing about our relationship that would lead me to think we can't work well together.

HOWEVER...I constantly hear horror stories about how going into business with a friend ruins the friendship. Is this REALLY the case? I would like to hear some success stories; I'd like to know how you avoided the pitfalls that seem to be so common in these types of situations. For those who had the unfortunate opposite experience, I'd like to learn from your experience. In retrospect, what would you have done differently?

How to split business ownership fairly?

Anonymous — Mon, 07 Dec 2009 07:11:30 -0800

How should my business partner and I split the ownership and income of our start up? A parter (let's call him Bob) and I (let's call me Alice) started a business with no formal agreement regarding ownership. Currently, the business has minimal income and users. We expect this to change very soon.

Alice: Alice created the project in August '08. Alice has spent $1200 out of pocket on expenses.
Bob: Bob joined the project in June '09. Bob has spent $700 out of pocket on expenses, but is fine with spending the next $500 to equal this out.

Bob and Alice have each spent an equal amount of time working on the project each month that they have been working on it. So, Alice has been working on the project for 16 months and Bob has been working on it for 6 months.

What we want to know:

How should we split ownership?
How should we split income? We're interested in splitting the income evenly until we're each making a decent/living wage.

Alice and Bob have a completely amiable relationship. We're both interested in doing what's fair.

How to not get screwed over in a business partnership.

giggleknickers — Sun, 15 Nov 2009 22:35:57 -0800

How does the tech person in a business partnership avoid getting screwed over by the business person? We are four people talking about starting up a small software development business. Three of us are software engineering students who know crap-all about business, and the fourth is an experienced businessman who is more or less going to take care of all the non-technical stuff. He will be our Steve Jobs to us three Steve Wozniaks.

I'm a little paranoid because I've read a lot about the history of various technological developments, and it seems that engineers and developers have a habit of getting screwed over by the businessperson they partner with. The businessperson uses their tricksy business skills to swipe the intellectual property and get all the money and credit while the developer is left wondering what on earth happened.

Am I overly paranoid from the history I've read or is this likely? How can I avoid it? We'll be working on a project that has been a long time dream of mine, so I feel very overprotective about it.

I'm trying to educate myself about this situation, but it feels like I need a degree in business, and another in accounting and another in law in order to understand everything I need to know to answer this question. It seems like a paradox, because if I knew enough to answer this question, I would know enough that we wouldn't need someone taking care of the business end of things in the first place.

How to form an equitable business partnership

forwebsites — Wed, 04 Nov 2009 22:44:37 -0800

How to setup a business partnership in an old-school brick-and-mortar manufacturing business between four friends - two of whom will be the major investors (say A and B), one guy is partial investor who will work full time but is new to this business and doing business in general (C ie: me), and the last guy is the one (D) with the entire business knowledge. He is in the field for past 7 years, already running a profitable trading shop (buying in Saudi, selling in India) in this field and is interested in expanding by setting up 'our own' manufacturing facility in Saudi. This is my first time venturing into a business setup after quitting my job. Some things which are different than the norm. We don't plan to take any debt. This is an all cash setup we are planning in Saudi and there would be no lawyer involved it's all mutual agreement and trust between us. Treat this as business amongst friends. There are no trust issues and nobody is fighting for the last margincal percentage. All of us are pretty ok with the plan being a bit flexible and we cover each others backs anyways. As long as it 'looks good and fair overall' it's game.

The investment capital ratio is :
A - 45%
B - 45%
C - 10% (ie me)

Entire capital is going to be invested upfront in setting up the business, visas, licence, machinery etc. There is no staggered investment. The only thing variable in the above plan is: B might decide to remain as just investor or investor + working full/half time based on the need.

D having the full business knowledge is going to do the initial work of sourcing raw materials, setting up shop and selling. He is the only one at this point with all contacts, knowledge the works. Apart from my 10% investment, the idea is I (and maybe B) be working full time alongside with him and learn the trade, eventually come to a position 6 months down the line where I (and B) be managing the Saudi shop and he'll concentrate on the selling side in India.

I will be working full time on this. But since I'm new to it, one way to look at this is also that I'm getting an opportunity to learn the trade. Same applies to B if he becomes a working partner.

All the working partners C, D (and B) are okay with not taking a salary for, say first 6 months or so.

How should we divide the stake in this setup between all of us and how much salary (or any other form of compensation - increased stake in lieu of agreeing to not take any salary) should C, D (and maybe B) get?

Thanks.

My partner, my nemesis

ChabonJabon — Mon, 05 Oct 2009 00:18:55 -0800

My business partner is driving me crazy - I always and constantly have negative thoughts about him. How do I resolve this? A guy who was my best friend for a year became my business partner. We started an online venture together, and I did the programming and he did the extra work - i.e, daily research and labelling of items. We did this for a few months. The venture did not take off too well, and then he basically stopped working. At this point, he would always draw up plans on how this site should look like, and we would argue about this, because I told him that these designs were too complicated and I could not do this. He always complained at the time that I would always shoot down his ideas, but we went along.

After he basically stopped work, I slogged on alone for a further 6 months. The site still did not take off, and we let it just sit there, occassionally discussing what to do with it. We remained friends.

Then we got an offer: someone randomly offered to by the site for about $20.000. I accepted the offer, and informed my friend. We split the money - and this is where the trouble started. After I sent him the money, all that was on my mind was that he did not deserve the money. I had worked for close to a year on the project, the name, ideas were all mine - the things he did could have been done by anyone.

I came up with a new idea for a new project, and I contacted him again, being basically the only person who I had available to work with. We started off again, and we created a reference site to test the market. It worked fine, and then we let the business idle for about 4 months. Then I created the second reference site, and the business slowly started taking off. I did all the programming, and we would discuss the strategy. We argued a lot at this point, he would always hark back to the topic that I kept on overriding him.

He would constantly come up with ideas on how things should be. His ideas were never based off numbers or analytics or anything - his ideas would completely be based off instinct. I.e, he would have an idea and want to test it, even if the numbers say no. His success rate was not good - sometimes it would work, most times not.

After about a month, I brought in someone new. Another old friend of mine lost his job, and wanted in. After I brought in this new guy, things changed - between me and the new guy, the productivity more than quadrupled - we both work very hard, and we don't spend a lot of time discussing things. Rather, I say what should be done, the new guy either goes ahead and does it, or he disagrees and explains why. Whenever the new guy disagrees, I tend to follow it, because it usually means this is important.

After the new guy was in, my resentment for the old partner increased. He is the worst in the team - he does the least work, when me and the new guy work weekends, he does not, he argues a lot with me and resents it when I take a leadership role, because he does not want to be under me. At some point, we needed to raise money, both me and the new guy were able to get money from family, he could not get any. The person who he tried to get money from, it turned out he had previously borrowed money from the person and never paid the money back.

Currently, the old partner is trying to reduce his workload, even though he is already doing the least. He speaks of certain commitments he has to do every week (studying), and that the venture is sucking up all his time.

Furthermore, when we sit together in an office (we don't usually do so), the old partner is very disruptive - he always talks to the environment while working and constantly tries to engage in conversation with others. This is terrible for work.

Also, to highlight the difference in productivity between the two partners, let me give an example:

They both had the same tasks to complete within a month. The new partner finished his tasks in 15 days. By the 20th day, the old partner had done 1/3 of his tasks, and had started trying to claim that 1 of his tasks was equivalent to two tasks, because it was complex. Never mind that the other partner had completed two of exactly the same tasks in this period.

Thats one side of the story. The other side of the story:

- This guy acts as a counter-weight to me. I sometimes make stupid decisions, and having someone like this around balances my opinion
- The new partner does everything I ask with hardly any questions
- When it comes to calling and talking to people, the old partner is the best among us threee
- This old partner has come up with some really good ideas that have made good money, the new partner so far has not. The new partner is not a creative type, he is a steady work horse. I am creative, as is the old partner
- I am a very angry person. I am rude, commanding and I micromanage peoples work
- I get annoyed quickly and I tend to obsess for long periods of time over peoples faults (like in this situation)
- I always want to change stuff - the old partner does not like to change stuff, giving us a measure of stability

The question is now - what do I do? It is going to destroy my friendship with this guy if I break up this partnership. It may even destroy the business. Also, if this guy goes, the entire business will become a mono-culture, i.e, all ideas will be mostly from me, and there will be a total lack of new ideas.

The point is that we are all supposed to own 30% of the business, but we have not signed contracts yet. Things can still be reorganised. I would like to keep the old partner in the business, but I am not prepared to give him 30% of something that I am spending so much time working on, and where he is so lazy.

How do I resolve this problem - it's eating me up inside, I just keep obsessing over and over again on the same topic, and cannot come up with a good solution. What would it be?

Emphasis on "good"

Anonymous — Mon, 23 Feb 2009 18:36:01 -0800

How do I find a good technical co-founder for my startup? (I am not the worthless ideas-only guy!) I'm trying to put together a database-driven web application in Rails that I can sell access to. I've managed to get development to the prototype stage using contractors, but the more I envision what the next year or two will look like the more I realize that I need a technical person to be fully on board. I'm tech savvy but I'm not a coder, and I'll be needed for the non-technical stuff (mainly gathering up, normalizing, and making useful the data going into the database). I'm more than willing to give up a substantial partnership interest to this hypothetical person.

Where can I find a dailywtf.com-reading, standards- and best-practices-loving, revision-control-using, commenting-addicted developer to co-found this? I really don't even have the foggiest notion where to being looking, how to persuade someone to jump on (other than sharing the business plan and hoping he or she really likes it), or how to tell a good techie from a bad one.

I'm in Toronto, in case any advice is city- or country-specific. I also don't work in a tech-related field, so I don't meet tech workers on a regular basis.

Finally, just to keep this thread from being a sea of "Oh, so you have a BRILLIANT idea and you want someone to do 100 per cent of the work for 50 per cent of the company!", the model is to market to a particular industry in which I'm an expert. I've also invested thousands of my own dollars and hundreds of hours (on market research, plan drafting, contractor wrangling, and IP issues) so far.