Rule Number Two to Starting Your Own Business

In Uncategorized by kctaxexperts

Rule Number Two. Never, ever, ever, ever, no way, no how take on a business partner. Partnerships have a lower record of success than even the sole proprietor. Go ahead, look at the government records on the subject. I am sure they will agree with me. Why are partnerships doomed to fail? See Rule Number One. Things will be hard before they are easy. That strain breaks most teams. If you insist on ignoring my advice, or especially if you are already in a partnership, relax, I am sure it will be fine. I don’t want to be the one to rain on your parade. In all seriousness, if you do insist on a partnership, make sure there is one person who is a majority owner who has final decision making authority. Having someone with a final and ultimate say can help head off the divisions and discontent that hijacks the success away from so many companies before they even get off the ground. Make sure you have an operating agreement in place as well that is prepared by a licensed attorney who went to an actual U.S. law school (stay clear of the American Somoa Law School graduates, my apologies to Jimmy McGill and Saul Goodman). This agreement should clearly lay out what happens if something breaks bad with the plan, such as a partner wanting out or a partner wanting to buy another out just as an example. Things are not going to go exactly as planned. You can absolutely count on that.