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View Full Version : Looking for some advice,


LawnsharkMB
03-03-2012, 10:35 AM
I bought into a friends business about 6 months ago with the intent of going out on my own in a year or two. I stayed under his business name. To make a long story short we have decided that he will take back over the work that I bought from him, he's gonna pay me a salary and buy a company truck for my personal use also. Here's the catch, he wants me to put the truck in my name but he will make the payments. He also wants me to keep the loans for the trailer and mower I purchased in my name but he make the payments. Why would he want to do this and is this in my best interest? It doesn't make sense to me because he can't write off the truck, trailer, and mower if it's in my name right? Just wondering what some of you that have been in the business for a while think about all this.

kilman
03-03-2012, 10:43 AM
to write it off it has to be under his name or the business but i would contact a cpa:hammerhead::hammerhead::waving::waving::waving::drinkup::drinkup::drinkup::drinkup:

agrostis
03-03-2012, 07:38 PM
It sound's like your friend has credit problem's.

TurnGreen1
03-03-2012, 09:00 PM
I would think he has credit problems as well. I would be careful going down this road. These types of situations tend to ruin a friendship. I would be prepared to get stuck with equipment if his buisness fails.

samsaira
03-06-2012, 02:42 PM
Yep, he has credit issues and your going to be holding the bag if or when the business goes belly up. He is taking advantage of your friendship. Not a good situation to be in.

jdilliplane1
03-06-2012, 05:08 PM
A smart friend of mine who I sub for in snow season, said partners are for dancing!! It's great to help one another out and build a working relationship, but if my credit was at stake, I would want a say in those decisions. By becoming an employee, your assuming all the credit risk with no say in those decisions.

USA Lawn Care
03-08-2012, 01:24 PM
i sat here and reread the original post a few times to try to understand what he's trying to do. Still not sure of his reasoning.
Truck......keep it in his name all the way. Do not go down that road at all!!
If you bought the trailer and mower....I would say they are yours to keep unless he purchases them. If he wants to pay you $$ so you can make your payments, so be it.

LawnsharkMB
03-08-2012, 02:17 PM
i sat here and reread the original post a few times to try to understand what he's trying to do. Still not sure of his reasoning.
Truck......keep it in his name all the way. Do not go down that road at all!!
If you bought the trailer and mower....I would say they are yours to keep unless he purchases them. If he wants to pay you $$ so you can make your payments, so be it.

The business account will pay for trailer and mower payments, and the truck payments. Taxes, insurance, gas, everything. But all three will still be in my name. I think he has just over extended himself.
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Patriot Services
03-08-2012, 02:35 PM
Two questions. Why did he need you to buy in, in the first place? Second why do you need him to take it back over? I think neither one of you are sure how to run this business. This mish mash of who owns and pays for what is not going to work.
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LawnsharkMB
03-08-2012, 03:02 PM
Two questions. Why did he need you to buy in, in the first place? Second why do you need him to take it back over? I think neither one of you are sure how to run this business. This mish mash of who owns and pays for what is not going to work.
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He started the residentials on the side and i just blew up.I bought into his business and have been running the residential and small commercial side and he does the big commercial jobs. I'm about to graduate from college and I was planning on going out on my on but we have decided to bring everything together and he will pay me a salary and I will have one of our three routes. I know very little about business and I'm glad to give up that part.
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samsaira
03-08-2012, 03:10 PM
He started the residentials on the side and i just blew up.I bought into his business and have been running the residential and small commercial side and he does the big commercial jobs. I'm about to graduate from college and I was planning on going out on my on but we have decided to bring everything together and he will pay me a salary and I will have one of our three routes. I know very little about business and I'm glad to give up that part.
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There's your answer in your reply. "He started the residential's on the side". That is basically saying he CANNOT be trusted! Get out of it before you regret it later. Go on you own, its better for you. If you don't know how to run a business, do some research. You went to college. Talking from experience in the past. I had a partner who wanted to go into a pizzaria business with me and being naive I coughed up 10k and never got it back.

GreenI.A.
03-08-2012, 03:21 PM
I would check with your insurance company aswell. If the insurance is in your name they very well may deny any claim you have while using the truck for company purposes. I have told the story on here of a guy who lost control of his truck infront of a lexus dealer up here and destroyed a few hundred k in cars. The police could tell he was obviously using the truck for commercial use and put it in the report. His insurance denied all claims and he was personally sued for all of the damage. He was hit with fines for driving an improperly insured/registered vehicle and to top it off this all through up red flags for the IRS and he lost everything.

LawnsharkMB
03-08-2012, 04:14 PM
There's your answer in your reply. "He started the residential's on the side". That is basically saying he CANNOT be trusted! Get out of it before you regret it later. Go on you own, its better for you. If you don't know how to run a business, do some research. You went to college. Talking from experience in the past. I had a partner who wanted to go into a pizzaria business with me and being naive I coughed up 10k and never got it back.

What do you mean when you say he can't be trusted because he did the residentials on the side?
He had a day job and did a few residentials in the evening. He picked up a couple small commercial accounts and it took off from there.
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