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BUSINESS expantion questions. HELP

Discussion in 'Business Fundamentals' started by RYDER, Aug 9, 2007.

  1. RYDER

    RYDER Senior Member
    Messages: 281

    My wife actually owns our business we have 1 main truck and one backup truck for plowing. and one set of mowing equipment. My wifes brother made a comment that he would like to buy in on the company and get a truck and plow. If we let him do we need to change the business from SOLE P to partnership or something else? Also would we need to get other ins besides liability INS? Or doesn't it madder because it is her brother?
     
  2. salopez

    salopez Senior Member
    Messages: 873

    if he is buying into the busines YES you need to change your business structure. you cannot have a sole propriorship with 2 owners.

    Just add his equipment to your insurance.

    Have fun building new business credit again and chaging your tax Id and DOT and D&B numbers.

    Plus you need to decide if you are going to go partnership, corp, scorp, llc, limitied liablity partnership....MMM Family.

    just hirer him or let him sub.....
     
  3. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    Just hire him. Then figure out what he can bring to the table. If he brings his own truck and that gets you more jobs, then pay him a larger percentage of the income rather than an hourly rate or salary.

    If he works as a sub then he would need the DBA, Insurance, DOT, pay quarterly taxes, etc.

    Right now I only see two problems. 1. Putting his equipement on your insurance. Ins company might need the title in your name or the business name. 2. And this is the biggie. If and when it comes time to fire him it can be ruff at family reunions. Good news is that your wife is the owner and she has to fire her brother, not you.
     
  4. bribrius

    bribrius PlowSite.com Addict
    Messages: 1,609

    i erased my comments. they showed my paranoia. they were of you having everything in your wifes name and that could be bad. or her brothers name and her name. or someones name but your own. and im paranoid about having my things taken from me so i dont put my stuff in anyones name but my own. but then again your disabled i see so maybe you cant have it in your name. or maybe its a crappy business and you dont want it in your name. or maybe you just trust your wife completley .
    hell , who knows.

    i really need to stop thinking to myself like this. it scares myself.
     
    Last edited: Aug 10, 2007
  5. RYDER

    RYDER Senior Member
    Messages: 281

    thanks for all the info. yes it is my wifes business and I am disabled, But I do help out some.
     
  6. T-MAN

    T-MAN PlowSite.com Addict
    Messages: 1,363

    Dont let a disability slow you down, I have a friend who plows who is disabled, (not in his eyes) great guy.
    Family and business partners do not make a good mix. Make him a sub so your wife or you still are the Boss. Allways issues withfamily, who did what, or didnt do what. If he is a sub have him sign a contract with a no compete clause, then he will get paid for what he does. If things dont work out you wont end up in court.
     
  7. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760

    All partnerships end badly
    ALL

    Either hire him as an employee, or better just contract work to him (let him get his own business going)

    all partnerships end badly
    ALL