Lanae1
09-26-2010, 04:31 PM
Hello everyone,
I'm new to this site and have alot of questions so far. I had plans to establish a management consulting business in about a year after completing my Professional MBA. In fact, I'm currently building it very slowly.
However, i've just been presented with an opportunity to partner with someone who desires strongly to be in partner with me. The reason being is because of my background experience of 20 years as a Personnel Manager in the Military, as well as my incurred experience as a defense contractor. My added value is my supposedly competitive edge as a disabled veteran. Her background is IT of which I'm confident is a very good added value. However, I carry the majority of business ownership.
My question is I'm hesitant because we are co-workers and she is currently in partnership with 5 others in a franchise of which they are struggling to maintain payroll. She desires to establish quickly and work through what we don't know later.
I desire to know as much of the questions up front now.
It is her desire to establish the business, win some contracts and hire family members as outsourcing. I'm a little reluctant because I believe as a start up business our goal is to ensure we have a reasonable salary if possible before we hire others.
Secondly, I have an ethical drawback of paying our husbands for work that we develop to keep down costs. I believe the husbands should reap the benefits of any profits and defer wages as they are considered silent partners in this process.
It seems that my hesitation is becoming offensive to my potential partner as she is ready to move forward. However, I desire to have a business plan, partner agreement, salary agreements etc....before we sign the dotted line.
I've encouraged her not to wait on me if she desires to venture this opportunity now; however, she desires that we do this together.
Can you all help me in some questions I have? I'm reading alot but need some "bottom line answers"
1. Should we be established as an LLC or S Corp
a. we will be working out of our homes. Who's address should the business reflect under.
2. I'm I correct in keeping husbands as silent partners, deferr salary and allow them to reap from the profits, if any.
3. Is iit wrong to demand in the business agreement to delay hiring until at least 2years of favorable operation of which, until we are able to hire, contract bids will only be pursued based on owners skills, knowledge and abilities.
4. I'm confident I'm not wrong to demand clarfication of ethical standards but don't want to be offensive.
ex: Once company is successfully producing excess
-- establish charity distributions of no more than 10% to various charities, including our own churches that we attend or manage.
-- Hire family members only if they qualify and not based on keeping family members gainly employed.
-- Do we run a great risk of nepotism as owners if we only hire immediate family members?
I have alot more questions. These would not be problem questions if I was a single corporation owner, but now since I'm considering a partnership I want to be sure that my or her ethical standards are not imposing or unreasonable.
Any inputs you provide would be greatly appreaciated. I'm confident that you all have much more experience than I and I respect all of your candid comments.
v/r
Lanae Consulting & Services, Inc.
I'm new to this site and have alot of questions so far. I had plans to establish a management consulting business in about a year after completing my Professional MBA. In fact, I'm currently building it very slowly.
However, i've just been presented with an opportunity to partner with someone who desires strongly to be in partner with me. The reason being is because of my background experience of 20 years as a Personnel Manager in the Military, as well as my incurred experience as a defense contractor. My added value is my supposedly competitive edge as a disabled veteran. Her background is IT of which I'm confident is a very good added value. However, I carry the majority of business ownership.
My question is I'm hesitant because we are co-workers and she is currently in partnership with 5 others in a franchise of which they are struggling to maintain payroll. She desires to establish quickly and work through what we don't know later.
I desire to know as much of the questions up front now.
It is her desire to establish the business, win some contracts and hire family members as outsourcing. I'm a little reluctant because I believe as a start up business our goal is to ensure we have a reasonable salary if possible before we hire others.
Secondly, I have an ethical drawback of paying our husbands for work that we develop to keep down costs. I believe the husbands should reap the benefits of any profits and defer wages as they are considered silent partners in this process.
It seems that my hesitation is becoming offensive to my potential partner as she is ready to move forward. However, I desire to have a business plan, partner agreement, salary agreements etc....before we sign the dotted line.
I've encouraged her not to wait on me if she desires to venture this opportunity now; however, she desires that we do this together.
Can you all help me in some questions I have? I'm reading alot but need some "bottom line answers"
1. Should we be established as an LLC or S Corp
a. we will be working out of our homes. Who's address should the business reflect under.
2. I'm I correct in keeping husbands as silent partners, deferr salary and allow them to reap from the profits, if any.
3. Is iit wrong to demand in the business agreement to delay hiring until at least 2years of favorable operation of which, until we are able to hire, contract bids will only be pursued based on owners skills, knowledge and abilities.
4. I'm confident I'm not wrong to demand clarfication of ethical standards but don't want to be offensive.
ex: Once company is successfully producing excess
-- establish charity distributions of no more than 10% to various charities, including our own churches that we attend or manage.
-- Hire family members only if they qualify and not based on keeping family members gainly employed.
-- Do we run a great risk of nepotism as owners if we only hire immediate family members?
I have alot more questions. These would not be problem questions if I was a single corporation owner, but now since I'm considering a partnership I want to be sure that my or her ethical standards are not imposing or unreasonable.
Any inputs you provide would be greatly appreaciated. I'm confident that you all have much more experience than I and I respect all of your candid comments.
v/r
Lanae Consulting & Services, Inc.