I want to start a consulting firm with my business partner. I want everything to specially say, ''They are operating as 50-50 in everything they do. They are splitting all assets and revenue gained from the 'InsertYourName Consultants'. I have patented idea's and theories, and he has nothing tangible of those sort to bring to the table. But, he works at a bank, and me and him have a natural synergy that allows us to knock sales presentations out of the ball park. We both agree everything should be SIMPLY 50-50, start to finish. When me and him make a few million in 6 months, Ill come back and ask how I can make sure were both protected...Then Ill ask you legal folk's Roth IRA's look like. He's trying to sell me on that idea too, he says Roth IRA's help you avoid a lot of penalties when you want to retire? What do legal professionals recommend for that? Everything is perpetual, but I want to be able to except checks from clients ASAP. That is the main goal of this transaction. If I can do that, then I will be a millionaire. The sooner it happens, the sooner your company will have an amazing reference. Thank you for your time.
1 Answer from Attorneys
I an an attorney and i also have my own consulting form with a partner. You could have been describing our partnership. I have formed entites of all kinds. The partnership you seek can be formed a number of ways and the tax considerations will play a large factor in determing the type of entity you need.
The 50-50 arrangement is easy to paper. I have a checklist for any start-up. You form the entity and have an organizational meeting after consulting with a good CPA. each of you signs By-laws (corp) or an operating agreement (LLC) or a partnership agreeemnt. You have everything spelled for the start-up, operation and even the dissoltuion of the new company
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