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socrateaser
socrateaser, Attorney
Category: Business Law
Satisfied Customers: 38440
Experience:  Retired (mostly)
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my friend owns a nail salon; now i want to be his partner;

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my friend owns a nail salon; now i want to be his partner; i'm going to chip in $45,000 to be the partner, loss and profis shares equally

what should i do ? must i terminate his existing form of business and file a brand new one
or
can i just simple execute a contract/partnership with him without making change or filing with the state?

what else do you suggest?
thanks
The typical, and perhaps best legal option is to form a new Limited Liability Company (LLC) or corporation (INC) and then you would contribute your $45,000 capital the business account (to which you would he a cosignor), and your new partner would assign all of the assets of his current business -- each in exchange for a proportionate share of the new business entity.

Executing a simple partnership agreement, while it has the benefit of simplicity, it leaves you personally liable for any errors or omissions that are caused by either you or your partner during the course of business. This places not only your $45,000 at risk if you or your partner is sued, but also everything else that you own.

The LLC or Corporation form protects you from liability for injuries caused to others or business losses in excess of your investment.

The choice of LLC or Corporation may depend on whether or not you can practice cosmetology under the LLC form. Check with the State Board to see if LLC practice is permitted -- if so, then the LLC is probably the simplest organization, because it has very little administrative overhead, as compares to a corporation.

Hope this helps.

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Customer: replied 4 years ago.


how much does it cost to file LLC

The filing fee is $200 if you file online.

For comprehensive info on starting a small business in Washington, see this link.

Hope this helps.

NOTICE: My goal here is to entertain while educating the public about the law. I hope my answer is useful and informative to you. During our conversation, the website may ask you to rate my answer. If you rate my answer lower than the middle rating, then the website retains your entire payment, and I receive nothing. It is entirely your choice as to how you rate my answer. However, because your payment to me is in the nature of a donation/gift, rather than as compensation for any services rendered, you are entitled to know how your rating affects the final distribution of your donation.

If you need to contact me again, please put my user id at the beginning of your question ("To Socrateaser"), and the system will send me an alert. Please Click the following link for IMPORTANT LEGAL INFORMATION. Thanks and best wishes!

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