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I am a carpenter in New England with 14 years experiance in remodeling and new construction. I am also a certified Building Inspector. I recently had a conversation about becoming partners with a builder that I worked for. I’ve done some research on the subject asking around and using the internet to gather information. LLC’s and S corporations seem to be the most prevelent ways to go. Does anyone have a good piece of advice to give ? Has anyone set up a corporation with similar circumstances ? I would very much like to go about this the correct way and would appriciate your help. Thanks
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Partnerships are similar to marriage, the difference being that after you have a fight you don't have the advantage of being able to kiss and make up.
Hire a lawyer to put the agreement in writing for the two of you. He or she should cover the terms of the dissolution, so you've both got a script to follow when the time comes to split up.
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Divide the duties, know your roles before you start working together.
My first venture was a partnership. It's hard for two people that are independent enough to want to be their own boss to share decision making. Few partnerships work.
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Partnership is a sinkingship
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I would not suggest a partnership.
It sounds great at first......but then......
But then again, it might work between you guys. Who knows.
However, Sears Roebuck in now just Sears. Go figure.
Ed. Willams
*Depends upon what the two of you mean by "patrnership" Are the parties looking for "help" (translate: an assistant) or are you looking for shared responsibility and priviledge? Whatever you do, get the method of breaking up in writing and in detail. It helps for staying together.
*The best partnerships are when there are different skill sets for each and this is respected by the other. One handles the bids and customers and the other does the construction. When partners have the same skill set then one side of the business will suffer. Usually the business side. Be very clear in your roles and how these roles will be communicated. Communication is the key.Peace,Martin
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LLC's are great, BUT in some states they can not be used when you must be licensed. You may be able to get around that by carrying your licenses individually. See a lawyer.
On the business side, Jed had a good point. Most partnerships start out great, one guy turns lazy or crooked, and in the end, they fold. Most partnerships do not have very good agreements, and hence no exit strategy. The best partnerships are formed with the plan that they will break up, and the issues of the break up are treated in the agreement (like buy outs and receivables and distribution of assets). See a lawyer, David. A good lawyer. A $1,000 or 2 will save you $30,000 later.
*I have 2 partners and have been a licnessed builder of 14 years, in that time I also have become an inspector. In my case the partnership is great in our articles of lac we spelled out what each of us would do in the business. We also covered buy out and deaths what if one becomes an alocohlic etc.... GET IT ALL IN WRITTING!!!!!!!!!! I could go on for pages any other info you would like I mail me
*Well guys it seems like its over before it began. Last week my "partner" asked if I could go over to a job he is the lead on to do some work to get the job to a point where he could leave and "we" could start our jobs. Turns out that what it really was was a job interview with the general he's working for.I was shocked to learn that this general is under the impression he is going to take my place in the partnership I thought was going to happen. My partner claims no, but since I've confronted him with it I haven't heard from him. We were supposed to start a job I got for us today, he no-showed and hasn't returned my calls. Oh boy my wife is going to shoot me. What should I do now ?
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or even more common...
what if one of us alcoholics sobers up.......
*well dave, you can always count on yourself...sorry to hear about the scumbag doin the dirt..me, i'd pull my shoulders back and start the job without him and figger how much more money i was gonna make workin by myself...the adrenalin alone is worth a few bucks... and ain't u glad u saw his true colors now , 'stead of later..no ifs ands er buts... partnerships are harder to make work than a marriage.. and lord knows you gotta work at those all the time....
*I agree. Square your shoulders, stick your nose in the air, and get started on your own. If you have to hire labor to help you get through this one, it can't cost you as much as your 'partner' would have....Good for you !!
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I am a carpenter in New England with 14 years experiance in remodeling and new construction. I am also a certified Building Inspector. I recently had a conversation about becoming partners with a builder that I worked for. I've done some research on the subject asking around and using the internet to gather information. LLC's and S corporations seem to be the most prevelent ways to go. Does anyone have a good piece of advice to give ? Has anyone set up a corporation with similar circumstances ? I would very much like to go about this the correct way and would appriciate your help. Thanks