Starting a business with a friend

[Victoria U]

A fantastic opportunity has presented itself in the form of opening up my own massage office with a friend. This friend and I have worked at the same spa for the last 2 years or so, and have known each other for approx. 20 years. We trust each other completely (but will certainly have contracts drawn up and whatever else might be necessary to protect both of us in the event that something happens and one of us folds or must back out down the road). Basically, I'm not concerned about one of us screwing the other, but we've goth agreed that it's better to be safe than sorry.

Anyway... We've found a great location and can sign the lease any day now. But we're stuck as to how to go about this.

Do we form one LLC together? Or separate LLCs where we are completely independent of the other person, and we simply share an office? Or????

Obviously I'm pretty much at a loss as to what we should do, and how to go about it. We will certainly talk to a lawyer before making any final decisions, but if anyone has any ideas or tips, I'd appreciate them very much.

 

[Noni J]

I'd vote share an office.

You can always go into business together in a year or two if it all works out.

 

[My pic says SLIPKNOT!]

i opened my business on my own. and although it's tougher sometimes monetarily, i can honestly tell you that i'm so glad i did.

the people who work with me are fabulous. but at the end of the day, i have to know that we're not in danger of turning in a direction i don't want us to go because of a vote.

i think it's wonderful that the two of you trust each other immensely. friends like that are so hard to come by. those friendships are treasures. which, IMO, is all the more reason for you to protect that friendship by sharing the office.

it is possible to put two names on the lease.
it is possible for one person to take the responsibility and the other person sub-lease.
if you file llc, two names have to be on the registration. so it can either be both of you, you and your mom, you and your aunt who lives so far away she won't get a vote, you and your dog, whoever.

probably in this situation what you will both want to do is both sign the lease and share expenses. you don't necessarily have to form an llc just yet - i started out as a sole prop. and converted to llc this summer. anyway, good luck, your intuition will tell you what to do. and so will your attorney.

amanda