Tips For Starting A Small Business With A Partner
Starting an LLC with a partner is much different than starting one on your own. Joint ownership is all about communicating and considering all details to avoid major conflicts down the line. The most important business conversations will happen before you officially launch your business, so be sure to take the time to talk through even the most difficult details. To do this, consider these simple tips for launching your LLC with a business partner.
- Communicate your values and expectations. Before you jump into starting a business together, it is important to determine that you and your partner are on the same page. This is especially important if you are friends of family, since emotions can get in the way of a logical partnerships. If any major disagreements come up, it may be best to reconsider your decision.
- Make your agreement as detailed as possible. Put every verbal agreement that you make into writing and discuss every “what if?” that comes up. This written agreement will become an important conflict resolution tool for you and your business partner. When you take the leap to start an LLC, the more details you include the better.
- Discuss how you will manage employees. There were 27.9 million small businesses in the United States in 2010. These make up a large portion of the economic sector, thus the job sector as well. Even if you aren’t thinking about hiring employees at the moment, it is a good idea to talk about the potential. Decide if you will co-manage these workers or if one of you will take a more behind-the-scenes role.
- Talk through a growth plan. Once you start your LLC, growth will likely be the ultimate goal. Be sure to discuss what expansion and more revenue could mean for your partnership and what you will do if you choose to branch out geographically. Discussing these details now will keep you from being surprised when your business does well.
- Understand tax details. Taxation is part of the equation when anyone chooses to create an LLC, so work with a professional to learn how to manage taxes with a partner. This is especially important if your business partner also happens to be your spouse. Your finances may need to be adjusted when you start your LLC together.
When you choose to form your LLC and work through all of these details, it is important to get a legal professional involved. They can help you write up ownership contracts and mediate any disagreements. By taking the time to start your LLC in an organized and diplomatic way, you are setting yourself up for a successful partnership down the line.