Vehicle / New Partnership Disagreement

[BPC_Ben]

I have a dilemma. I have a business that I've been running as a sole trader for 3 to 4 years, and I'm supposed to be having someone joining my business as a partner. I am currently trying to sell my vehicle and one of the things that came up was that he (the partner) will be entitled to half of the value of the vehicle when it is sold. Even before signing any partnership contract papers & changing from sole trader to partnership.

I didn't buy the vehicle myself through my business, my parents bought it me as a gift, and I used it to to get around to jobs and for personal use occasionally until I managed to get a separate personal vehicle, and I claim for the business mileage which is what my accountant told me to do. Is it correct that even before signing papers etc, that I am supposed to give him half of the money? I don't even fully understand how if I'd sold it after the partner actually joined, how he is legally entitled to half of it for his own pocket? I would maybe understand it a bit more if the vehicle had been purchased through the business with business profit, that would make a little bit of sense to me but otherwise surely this would mean my personal vehicle would be half his if I sold it, as I sometimes use that if my other vehicle has broken down.

I also know lots of people who work for companies, who use their vehicle to go to jobs and claim mileage, and that doesn't mean the company owns half their vehicle.

As you can probably tell I'm very confused about this So any advice would be greatly appreciated.

 

[makemoney]

I didn't buy the vehicle myself through my business, my parents bought it me as a gift, and I used it to to get around to jobs and for personal use occasionally until I managed to get a separate personal vehicle, and I claim for the business mileage which is what my accountant told me to do.

I also know lots of people who work for companies, who use their vehicle to go to jobs and claim mileage, and that doesn't mean the company owns half their vehicle.

Doesn’t sound right to me. Is it in the company name? Is there any documentation to say that it is owned by the company? You are correct, You can claim for wear and tear (tyres), petrol, etc. How did it come to this conclusion?

 

[BPC_Ben]

Doesn’t sound right to me. Is it in the company name? Is there any documentation to say that it is owned by the company? You are correct, You can claim for wear and tear (tyres), petrol, etc. How did it come to this conclusion?

No it is not in the company name. It isn't documented as a business asset or anything like that. It was bought by my parents, and registered in my own personal name. All I do is claim the mileage each year.

 

[makemoney]

You say that you “used it to get around to jobs and for personal use occasionally until I managed to get a separate personal vehicle”,

What is this “other” vehicle? Is it company owned? How does it fit in?

 

[captaincloser]

Don't give the money and more importantly don't go into business with this person. Sign nothing even if you get the best legal advice on the planet..this deal will be born under a bad star.

Move on, sharpish.

S

 

[BPC_Ben]

You say that you “used it to get around to jobs and for personal use occasionally until I managed to get a separate personal vehicle”,

What is this “other” vehicle? Is it company owned? How does it fit in?

The other vehicle is my own vehicle as well. Not company owned or anything.

I originally had one vehicle (a van) as purchased by my parents, owned & registered in my own name not in the company name. I used this vehicle for both business and private use, then unfortunately a relative passed away and I inherited a small sum of money, so I purchased another vehicle (a car), in my own name again not company name. So I own two vehicles (one van, one car), I primarily use the van to get to my jobs, and occasionally I use my car if the van is in for servicing or has broken down etc. So I only claim mileage for my business use, which my accountant said is what to do and is all fine.

I am now selling the van, to get another van on lease, which again is all in my own name, not the company. But my soon to be partner is saying he should legally have half of my vehicle to do with what he wants.

Hope that makes sense and answered your question? Thanks for replying by the way.

 

[makemoney]

Either I am missing something, or I would have to say that your new company partner is trying to pull a fast one? Or thinks that the vehicles are owned by the company somehow? How well do you know this person? Before you agree to anything talk to a solicitor, and get him to look over contracts etc (you should anyway)

 

[Tej]

Don't give the money and more importantly don't go into business with this person. Sign nothing even if you get the best legal advice on the planet..this deal will be born under a bad star.

Move on, sharpish.

S

This is the best advice you will get... could not agree more!!

 

[internetspaceships]

I agree. (Yes really I do)

 

[Spearmint]

I'm intrigued!
What's the background on how you found your new partner and what made you decide that you needed a partner? If you've already explained to him the circumstances behind the van, I'd be very concerned that he hasn't dropped the subject, and it would worry me about your future relationship as partners!
What's he bringing to the table? Are you using a solicitor to prepare the agreement?

 

[BPC_Ben]

Either I am missing something, or I would have to say that your new company partner is trying to pull a fast one? Or thinks that the vehicles are owned by the company somehow? How well do you know this person? Before you agree to anything talk to a solicitor, and get him to look over contracts etc (you should anyway)

Am I correct in that from what you are saying, the fact my van is registered in my own name means that he is not entitled to half, and what I do with it is upto me? But if I'd registered it in the company name, then he would be entitled to it because it is part of the company?

Is it like companies that give their employees company cars. The car is registered and owned by the company. Some companies don't give out company cars but allow employees to claim for mileage for certain things but that is still the employees car not the company?

I have known this guy for about 7 or 8 months, and to me it appears he doesn't know or understand as much as he says he does, and that people put things in his head. I definately do not plan on doing anything with out a solicitor.

 

[internetspaceships]

I'd be very concerned about someone who hasn't even joined your company suggesting that he's already entitled to half the proceeds from items that you yourself own.

I'd take Closer's advice here and nip this one in the bud right now.

You've had a warning shot over your bows and you would be very silly to progress things with this guy.

 

[BPC_Ben]

I am leaning towards forgetting this partnership because of this whole vehicle disagreement and other little things as it is seeming to me that he doesnt know as much things with regard to business as he makes out he does and its causing a lot of problems. I've been running my business for 3 to 4 years, he has no business experience but keeps trying to dictate to me what to do & he can't explain his arguments at all. In the work I do, it involves a lot of contracted work, so I've been needing to get a partner to get larger contracts as it is only me, therefore larger companies will not hire me because there is no one to cover me if I'm ill. My kind of work isn't really able to use sub-contractors to cover sickness.

As I say I have definately been in two minds about this the last couple of weeks which is why I wanted the help from you guys with regards to this whole vehicle thing. So I can show this information to him to say that he is in the wrong, and if he still persists with it then obviously there would definately be no point in this partnership.

As I said previously I definately would not go ahead with anything without a solicitor. We have been in brief talks with a solicitor who was supposed to be drawing up a contract for us, but I'm not sure how competent the solicitor is. Is it advisable to see a few different solicitors?

Perhaps if any of you could recommend a decent solicitor around the West Midlands/Warwickshire area?

 

[businessfunding]

The key point of a partnership agreement is that it gives you, the partners, an oppotunity to thrash out anynumber of points, an to get potential issueson the table before big ecisions are mae.

My general advice would be to get a template, adapt it to make sure it covers everying you (pl) want covered and spend a lot of time ensuring that you both understan and agree what you are going into.

This should then be reviewed and ratified by a solicitor who can illustrate experience of dealing in these matters.

Falling out over a partnership agreement (before it is signed) can be the most constructive step you can take for your business.

 

[captaincloser]

As I say I have definately been in two minds about this the last couple of weeks which is why I wanted the help from you guys with regards to this whole vehicle thing.

As I said previously I definately would not go ahead with anything without a solicitor.

Perhaps if any of you could recommend a decent solicitor around the West Midlands/Warwickshire area?

BONKERS>>>

Er, Sorry but a solicitor is not going to help you if this is a bad deal . That's not their job-their job will be on the legality side not the business suitibility of the guy who wants half the money from your own vehicle sale.Thats for you determine on your own...I repeat the solicitor, however good or bad will not give any advice on your business partner. At the very least get a ton of references on him...

This is a bit like a marriage ...marry in haste and repent at leisure.If you are already losing sleep over a partnershp that has not been formalised then the future does not look good, now does it ?

Wise up.

 

[BPC_Ben]

BONKERS>>>

Er, Sorry but a solicitor is not going to help you if this is a bad deal . That's not their job-their job will be on the legality side not the business suitibility of the guy who wants half the money from your own vehicle sale.Thats for you determine on your own...I repeat the solicitor, however good or bad will not give any advice on your business partner. At the very least get a ton of references on him...

This is a bit like a marriage ...marry in haste and repent at leisure.If you are already losing sleep over a partnershp that has not been formalised then the future does not look good, now does it ?

Wise up.

Er not to sure what you're on about here, I did not say a solicitor would give me advice on my business partner or anything to do with business. I said I would not sign a partnership contract without a solicitor, which is what everyone said, and is common sense so you're rude response was a bit unnecessary. Plus actually the fact I'm asking about if my potential partner is legally entitled to my vehicle...is to do with a solicitor, hence the word LEGALLY entitled.

 

[Spearmint]

I agree with the Captain. Abandon the partnership idea altogether, and save yourself the solicitor fees.

I also don't believe an additional business partner is likely to make any difference on you securing larger building projects! There's a lot more to it than that.

 

[BPC_Ben]

I agree with the Captain. Abandon the partnership idea altogether, and save yourself the solicitor fees.

I also don't believe an additional business partner is likely to make any difference on you securing larger building projects! There's a lot more to it than that.

Yes it makes a huge difference having a partner to get larger contracts for my business. Not sure what you're on about with building projects? I don't do anything to do with building :|

But thank you for taking the time to respond, much appreciated.

 

[Spearmint]

My apologies about my assumption to building projects. I'd associated your references to contracted work and sub-contractors to be related to building projects.

 

[captaincloser]

Er not to sure what you're on about here, I did not say a solicitor would give me advice on my business partner or anything to do with business. I said I would not sign a partnership contract without a solicitor, which is what everyone said, and is common sense so you're rude response was a bit unnecessary. Plus actually the fact I'm asking about if my potential partner is legally entitled to my vehicle...is to do with a solicitor, hence the word LEGALLY entitled.

You may find my advice unpaletable but it's not rude.

I can point you to rude on here if you wish ?

What you should really say is that you are not looking for advice on your choice of business partner which is fine.

Looks srtongly like night is going to follow day for you.

I'm out

 

[BPC_Ben]

Thanks again for all your responses, especially makemoney who has cleared things up for me.

Some people have appeared to lost what I've actually enquired about, and what I've actually said but I still appreciate you taking the time to respond.

Again, if anyone has any recommendations for solicitors in the West Midlands/Warwickshire I would appreciate that also.

 

[BPC_Ben]

You may find my advice unpaletable but it's not rude.

I can point you to rude on here if you wish ?

What you should really say is that you are not looking for advice on your choice of business partner which is fine.

Looks srtongly like night is going to follow day for you.

I'm out

No you were rude, that was obvious. Your advice was not relevant to anything I had said. Pretty simple, but there we go, thanks anyone for responding.

 

[BPC_Ben]

My apologies about my assumption to building projects. I'd associated your references to contracted work and sub-contractors to be related to building projects.

No problem.

 

[captaincloser]

No you were rude, that was obvious. Your advice was not relevant to anything I had said..

Thats your opinion..others on here agree with me and my opinin as you have read.

Suggest you come back in 6 months and tell me off for suggesting you do not go throuh with this...no, wait...come back in 3 months and tell me I am wrong about this business partnership.

I will be waiting for you by the winning post and will be delighted to be proven wrong.

 

[makemoney]

Yes it makes a huge difference having a partner to get larger contracts for my business.

If you are worried about finding someone quick to do some work for you, and need someone for the day or week then there are plenty of people with part time jobs already, and are looking for “phone standby” short working hours/days/weeks. I don’t know what it is you do? but Jobseekers is a good place to start if you do not want to use an agency,

 

[internetspaceships]

OP there are people on this thread recommending that you don't do this because they too run businesses and have possibly made the same mistake before. There's no other reasoning for the advice.

They are trying to help you by suggesting that you don't make a massive mistake. Not for their own good but for yours.

You can take or discard the advice at your leisure. You can also have a good look through the legal section and see the countless threads from people who have made the mistake of going into business with someone who wasn't right.

This guy is concerning you before you have even taken him in. Listen to your gut feeling.