Forming a partnership

Discussion in 'Starting a Lawn Care Business' started by plant doctor, Aug 2, 2005.

  1. plant doctor

    plant doctor LawnSite Member
    Posts: 1

    I am looking into joining a company as a partnership. The company is a two year old company and I need to know what to do. How do you go about joining when the company is already established. Do you pay money to get in or buy equipment or what? What is the respectful thing to do? I need help. Also what would u do about the company. Would you incorporate or what? How would taxes work. Please help.

    Thanks,

    plant doctor
     
  2. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,400

    Yes you would want to incorporate that way you would own shares in the company probably not 50% as it is not yours but what ever the set up you would then split the profits based on who owns what. Probably the best way to go about this is to get a value of the company what does it own what are the accounts worth how much cash does it have what is it owed you get the idea. Once you know you can put a value on shares then the next part is up to you guys either he sells you some of his shares say he owns a 1000 and they are worth 70 dollars each 400 shares would cost you 28000 or you can come up with something else like you put in cash and just buy in to the company you get the idea you got allot of home work ahead of you. All I can say is be careful most here will tell you partnerships do not work I do delight in the fact that mine has more then worked but most do not so be certain you want to do this.
     
  3. out4now

    out4now LawnSite Bronze Member
    from AZ
    Posts: 1,796

    Incorporate and limit your personal liability to what you have in the business.
     
  4. StealthDT

    StealthDT LawnSite Member
    Posts: 97

    Joining a two year old company doesn't sound like a safe investment to me. You need a partnership agreement and some lawyers advice. They should disclose all financial records and liabilities such as pending legal or tax issues. Who's idea was it to join this endeavor? How long have you known the owners? How old are you?
     
  5. Runner

    Runner LawnSite Fanatic
    Posts: 13,494

    Partnership? Four simple words...Walk the other way.
     
  6. mtdman

    mtdman LawnSite Gold Member
    Posts: 3,137

    Don't do it.
     
  7. Runner

    Runner LawnSite Fanatic
    Posts: 13,494

    LOL~! There's those words again!
     

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