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Looking for some advice,

Discussion in 'Business Operations' started by LawnsharkMB, Mar 3, 2012.

  1. LawnsharkMB

    LawnsharkMB LawnSite Senior Member
    Messages: 650

    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.
  2. kilman

    kilman LawnSite Member
    Messages: 24

    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:
  3. agrostis

    agrostis LawnSite Silver Member
    Messages: 2,539

    It sound's like your friend has credit problem's.
  4. TurnGreen1

    TurnGreen1 LawnSite Member
    Messages: 103

    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.
  5. samsaira

    samsaira LawnSite Member
    Messages: 31

    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.
  6. jdilliplane1

    jdilliplane1 LawnSite Member
    from philly
    Messages: 29

    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.
  7. USA Lawn Care

    USA Lawn Care LawnSite Member
    Messages: 62

    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.
  8. LawnsharkMB

    LawnsharkMB LawnSite Senior Member
    Messages: 650

    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.
    Posted via Mobile Device
  9. Patriot Services

    Patriot Services LawnSite Fanatic
    Messages: 14,360

    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.
    Posted via Mobile Device
  10. LawnsharkMB

    LawnsharkMB LawnSite Senior Member
    Messages: 650

    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.
    Posted via Mobile Device

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