I’m starting a business with a friend / partner, what structure should I use?

Posted on August 22, 2018 by -

I’M STARTING A BUSINESS WITH A FRIEND / PARTNER, WHAT STRUCTURE SHOULD I USE?

The ideal structure will turn on a variety of factors including (among others):

(a) the personal circumstances of each of you (do you have other income/day-jobs?)

(b) forecasts for each arm of the business, will retail be making losses in the beginning?

(c) exit-strategy

A partnership is useful in situations where the partnership is making a loss which can be offset against each respective partner’s income from other sources. From a legal liability and exit perspective, a company (potentially held by family trusts) might be better suited.

In either event, a shareholder or partnership agreement will be necessary.

We’ll help assess the circumstances and advise on how to appropriately structure and document the business relationship.