Here’s the question I got today in email: I recently started a business with four others. Modest revenue has begun and two of the partners want to draw compensation. What is the trade off for them drawing compensation while others do not? The question reminds me that a lot of people confuse getting paid for...
By Tim Berry
So you are starting a new business and you and your partners are really excited about the endless possibilities that await you. The last thing you want to think about is the worst-case scenario — the failure of the business or a partnership gone wrong. Failure to plan and lack of funding are both leading...
By Chad Barczak
While diligently filing articles of incorporation and adopting bylaws, many corporate owners overlook a critical element of their business relationship: buy-sell, or buyout, provisions. By creating a shareholders’ agreement with buy-sell provisions, the owners of a small, privately held corporation can prepare for events that have been the downfall of more than a few successful...
By Nolo
Many business partners overlook a critical element of their partnership agreement that can save them both money and angst: buy-sell provisions. When you create buy-sell, or buyout, provisions for your partnership agreement, you and your partners can prepare for events that have been the downfall of more than a few successful small businesses — namely,...
By Nolo
If you plan on going into business with a business partner, a written partnership agreement is important. If you and your partners don’t spell out your rights and responsibilities in a written business partnership agreement, you’ll be ill-equipped to settle conflicts when they arise, and minor misunderstandings may erupt into full-blown disputes. In addition, without...
By Nolo
If you are going into business for yourself and your spouse will help out, you don’t need to hire your husband or wife as an employee or independent contractor, nor do you need to form a LLC or corporation. If you follow certain guidelines, you can continue to operate as a sole proprietorship (a one-owner...
By Nolo
By definition, a partnership is a business with more than one owner that has not filed papers with the state to become a corporation or LLC (limited liability company). There are two basic types of partnerships—general partnerships and limited partnerships. This article discusses only general partnerships—those in which every partner has a hand in the...
By Nolo