Sunday, April 7, 2013

Help with structuring of business for negotiation with partner


Hi. I am starting a new business in the organic foods industry. I want/need a partner and I have found the perfect candidate. However, he has absolutely no knowledge of the industry - all of the planning, education, research, etc. are directly due to my efforts.

The initial investment into the business will be divided equally between the two of using funds from each of our personal accounts. The business requires the use of a commercial vehicle and insurance. I already own the vehicle we will use and the commercial insurance policy is in my name. I currently use the vehicle for another business, but the vehicle can be used for both businesses with no conflicting schedules, etc. So, it would be wise to use the vehicle that I already have instead of purchasing a new one.

Also, a line of working capital credit will be established with a local bank. This loan will be issued on my credit since it is a new LLC and I have better credit. After six months, we will be able to transition the credit directly to the LLC and my name will be dropped.

Our business plan is structured such that my partner and I will put in equal time, effort and work. My question is this:

I would like suggestions as to how to structure the Partnership Agreement, given the situation laid out above.

For example, should I take a larger percentage of the business since it is my plan, etc.? How should I deal with the commercial vehicle and insurance since its in my name and is currently used for another business? Even though we will share the initial investments costs and the workload, how could we make this situation fair?

I welcome any advice. Thanks.

Source: http://www.businessadviceforum.com/showthread.php/47448-Help-with-structuring-of-business-for-negotiation-with-partner

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