Legal Question in Business Law in New York

Re: what type of business contract to use

Dear sir or madam:

Depending on your respective goals and needs, you could structure your compensation arrangement in many different ways. Has your friend formed a business entity for the new business?

You should consult an attorney before you proceed. You may contact my office at [email protected] for a consultation.

Good luck,

Anthony S. Park

Re: what type of business contract to use

sounds like you should consider a partnership agreement or you should form a corp or llc. you can call me at 516 466 5297 for a free telephone consultation

Re: what type of business contract to use

While I concur with the other authors, some basic questions need to be answered. Are you to be part of the business or just receive commissions? Do you also share in profits, beyond what you are to be paid? If you are to be a real partner, with the profits being split 60/40, you can form one of several business entities: corporation (either regular of subchapter "S", which have different income tax consequences), a partnership (regular or limited), a limited liability company (like a partnership), a joint venture, etc. If you are merely to be compensated based upon sales (like a commission), all you may need is some type of employment agreement. If you are actually to be a part of the business, you should have some written agreement spelling out what are each of your rights and responsibilities, how expenses are to be reimbursed, how profits and losses are to be split, who is responsible for funding the business and how much, can you be fired (you have a minority interest) and, if so, under what circumstances. These are matters, just for starters. What happens if one decides the business should be discontinued? What happens if one of you become disabled or dies? Much more information is needed to give you a more meaningful answer.