I've never entered into a formal business partnership of this type before, and I'm not sure what to do. My partner wants 51% of the deal because he does most of the business development and he believes that equal partnerships can't work. By entering into an equal partnership he believes leadership would suffer and decision-making could be stymied.
By accepting 49% ownership do I effectively give up all control over day-to-day operations of the business? What are the downfalls I should consider? Is this a sucker's deal?
2006-12-13 19:17:18 · 13 answers · asked by nofreelunch 1 in Business & Finance ➔ Corporations
it should be 50--50. You might regret this if you let him have controlling interest. he will be making all desions over everything.
yes it is a bad deal
2006-12-13 19:22:00 · answer #1 · answered by Kismitt 6 · 0⤊ 0⤋
I don't think that it sounds like such a great idea. I feel that if you are going to enter into a business relationship like that then it needs to be completely fair and equal. I would imagine that your partners 51% ownership will become more of an interference than an asset or help. I'm by no means a successful business woman but it just doesn't seem like a smart decision. Good Luck!!!
2006-12-13 19:22:26 · answer #2 · answered by Tiffany L 1 · 0⤊ 0⤋
51 49 Partnership
2016-10-22 11:49:40 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The decision needs to based on several factors like money invested, line of business, your and your partner's credentials and experience, risk taking abilities, roles and responsibilities you both might perform in the business etc., A self assessment would tell you who can lead the business well. But still, a good consulting/law firm might be the right one to ask for a decision in this case.
In a partnership, it is essential that matters are resolved amicably between yourselves and reach an agreement. Review your situation and take a prudent decision.
2006-12-17 02:04:21 · answer #4 · answered by arulanjaneyan 2 · 0⤊ 0⤋
Do NOT do this!!! At 51%...it gives him controlling interest, and yet you bear the same responsibility of a partner. He can make bad business decisions that you have no say over...yet will affect your lifestyle, income, credit, etc. Go to an attorney that specializes in business law...learn your rights before entering into any "deals" with this person
2006-12-13 19:22:17 · answer #5 · answered by Anonymous · 0⤊ 0⤋
No, not at all. However, it may be advantageous. Say you are partnering with your wife. Have her the majority shareholder. That way you can get tax breaks as a female owned business, and apply for small business grants.
2016-03-17 21:37:42 · answer #6 · answered by Anonymous · 0⤊ 0⤋
You are the one who made this company what it is today? He wants to own more of it?
If I made the company what it is today there would be no way I would give up more then half of it.
This person wants to be in control, if this is OK with you then go for it. If you have hesitation do not do it!
2006-12-13 19:23:18 · answer #7 · answered by Anonymous · 0⤊ 0⤋
If you and your partner cannot get along and he needs to have veto control over you ... do not go into business with him.
Talk to a lawyer or trusted business advisor, do not believe
what people tell you here ... you can think about it though. ;-)
2006-12-13 20:00:09 · answer #8 · answered by themountainviewguy 4 · 0⤊ 0⤋
The downfall is you essentially become an employee. I would hand you a bag of dum-dums if you were here.
2006-12-13 19:26:07 · answer #9 · answered by Anonymous · 0⤊ 0⤋
i would certainly not go into it without consulting a corporation attorney of my own hiring. That said, depends on what you have to invest and how you get out if you have to.
2006-12-13 19:20:06 · answer #10 · answered by David B 6 · 0⤊ 0⤋