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Category: Finance and Credit Current Grade: A Total Views: 713 Member Comments: 2 |
Posted on: 05/07/2008 Posted by: Hustle Hard Holdings Blog Points: 150 View all blogs >> |
I've met with a potential partner two weeks ago. We have agreed to do a project together. This will be a first time for the both of us. Does anyone know where and how should I go about writing up a contract before I go to a lawyer.
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Hustlehard
Hustlehard
Another source of information on structures and protecting your position is a book called Wealth Protection by William Bronchick. Look it up on Amazon. It costs approximately $14. The key way to use the book is to read it before speaking with the attorney. For $14 you can learn the basics rather than paying a lawyer to educate you. When you are with the attorney you want to ask good questions and discuss fine details rather than pay $100 per hour or more for an introduction to the topic.
Assume this is your prototype deal for future partnerships. Put out a bit more in legal costs to get things handled correctly so you know how to set things up on future deals. Worry less about the profit this time around and more about doing a deal your partner will like and which is repeatable. Then you will be able to cite this deal as a positive deal when speaking to future partners. The structure and the way you handled things professionally plus the profit the partner makes is your marketing material for future partner deals.
Good luck.
John Corey
www.CheleseaPrivateEquity.com/blog
I would suggest a LLP, Limited Liability Partnership that is exclusive to the one deal you have together. You don't want to loose your house if they run off to Tahiti. I would recommend http://www.andersonadvisors.com/ because they know the tax side of your new union.
I would also get a book and read it BEFORE you leap and run into the wrong entity for your deal. Get educated. Here is a Rich Dad, "Own Your Own Corporation." book I read too that helped a lot, but Anderson was able to explain how it affected what WE wanted to do.
Also, you should have a clear idea of who does what going into this as well. Who owes what? Who owns what? Sounds like fun, just get prepared.
- Brian Lucier