Partnership questions

[GarryP]

Hi,

I am planning out my business and have some questions on Partnership.

If I decide a business partner is a good idea, I would put an advert out, this lead me to my questions.

1. I know it is not always good to go into partnership with someone you hardly know, but if an agreement is set in place, could I put a get out clause, where I come away with the business and drop the partner?

2. When going into partnership with someone you hardly know, what should I be looking out for. It would be very unlikely to ever see then face to face.


Thanks

 

[Scalloway]

An insolvency practioner once told me you should put more care into choosing a business partner than you would into choosing a wife. In a partnership both partners are are jointly and severally liable for the partnership's debts. In a worst case scenario your partner could disapear leaving you with a mountain of debt you can't pay off.

If you are going to go down this route I would suggest a limited company, with a shareholders agreement in place before you set it up.

 

[Adauxi]

GarryP - are you thinking of an investor to provide money rather than someone to work in the business with you day-to-day? They are very different requirements.
As Scalloway says, you really need to do a lot of checks into your potential partner.
In terms of your get out clause - how would you feel about your prospective partner having the same opportunity to walk away?