Q: Me and a partner are starting a limousine business. Need help making contract - where do I start?
Me and a partner are starting a limousine business. I have provided all funding for the business, so far at $30,000. He has provided the know how of the business, and will be driving for wage + his %50 stake in business. All funds that go into business once we start getting $, after paying my partners wage and any other expenses on the road, will go directly to paying off my investment in the business.
After all my funds get back profits will be split %50 - %50.
We need a contract that covers all this stuff, as well as the direct responsibilities of each party.
A: It sounds like you are on the right track. The first thing you must do is form an entity (e.g. a partnership, LLC or corporation) as the entity to run the business. That entity can contain all of the contract terms, if you form a general partnership. If you choose to form an LLC (a Limited Liability Company), the contract terms can be contained in an "Operating Agreement." I strongly suggest that you use one of these entities to run your Limo business. After that, as you probably know, you will need permits and licenses, etc. One of the big reasons for having a full agreement is that it forces you and your partner to determine in advance exactly how the business is to be run, who is going to run it, and how the proceeds will be divided. There is a good article on "How to Start a Limousine Business" on the internet. Here is the link: https//smallbusiness.com/start-limo-business. The formation process is pretty expensive, but you will be much better off if you get everything set up the right way. Good Luck.
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