How do you add a person as a partner to a already established business?

Question

I have my own business and my status is "sole proprietor" I am wanting to give a family member part ownership of my business... so that I can get a start up loan what is th ebest way to do this?

I already have my tax id number and business license. The family member also resides in a different state does is this difficult as well?

Answer 1

You will have to convert away from sole proprietorship. At the very least, you will have to form a partnership with your relative. There may be tax benefits to either incorporating of forming an LLC, but only a tax accountant with full knowledge of your situation (including revenues and profits that you earn) can tell you for sure. So I would suggest that you go see a tax accountant...

The fact that your relative resides in a different state could potentially make things slightly more complicated, if that state requires specific forms for tax purposes. Again, this is something that you should discuss with a tax accountant...

Answer 2

Well you can give partnership to anyone you just have to to goto your chamber where you firm is registered and provide the name and tax ID and license of partner and you just have to mention there at chamber that you want this firm to be converted to partnership from sole proprietor.

And the partner doesnt helps much in load but does helps in tax deduction from your side as the tax would be applied to two partners rather than to be applied on you. For loan you just need a proper way like if you worth in business or you have your own home or any other property that can be helpful for loan.

Answer 3

An Intro: The historical past states that congress get together in India was once began through the British in India in 1885 with the target of acquiring a larger proportion in govt for knowledgeable Indians, the Indian National Congress was once to start with now not adverse to British rule. Later A few years down the road, the needs of INC grew to become extra radical within the face of steady competition from the federal government, and the get together grew to become very energetic within the independence motion. By 1907 the get together was once cut up into 2 halves: the Garam Dal (actually "scorching faction") of Bal Gangadhar Tilak, or Extremists , and the Naram Dal (actually "tender faction") of Gopal Krishna Gokhale, or Moderates , distinctive through their perspective closer to the British. Under the impact of Bal Gangadhar Tilak, the Congress grew to become the primary incorporated mass institution within the nation, bringing in combination hundreds of thousands of folks towards the British. The Indian National Congress was once the one political get together to furnish concord to the entire sects of the Indian society However after Independence the Congress was once stated to had been dissolved. It was once considering the fact that Nehru was once a robust influential chief additionally congress was once a robust agency which began a brand new face within the historical past of India submit Independence. I am now not for or or towards the Congress or every other get together that topic: Since the political approach wherein there's a large dielama for even sincere politicians whether or not to paintings for the cash or for folks welfare. Money within the feel for self or for the get together.

Answer 4

Has a banker told you that you need a partner for a loan? Things befome much more complicated when partners are involved. I would seek other sources of money before adding partners. Talk to a banker about what EXACTLY you'll need for a loan before adding a partner.