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Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 44671
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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Customer Question

Hello
Submitted: 2 years ago.
Category: Australia Law
Expert:  Leon replied 2 years ago.

Good Evening,

My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advise but a guide to assist you. How can I assist you?

Customer: replied 2 years ago.
HelloI need help in creating an agreement- 50/50 partnership agreement.
Expert:  Leon replied 2 years ago.

Good Evening

I cannot help draft it because that would be negligent of me.

Are you setting up a company or are the 2 of you registering a business name and running it under that?

Customer: replied 2 years ago.
Well pretty much i am doing a mobile application with a guy in America and i would like a 50/50 partneship agreement in placewere both founders of the mobile app
Expert:  Leon replied 2 years ago.

This is tricky.

Because it has to be covered by both US law and AUS law.

The following link has templates that you can use.

http://ip.wsu.edu/IP-research/agreements/templates.html

I would suggest that you not do this on your own. It you do the wring thing it can cost you alot of money with no recourse.

Do either of you have a solicitor? Also have you spoken to an accountant about your tax position and weather you should consider a company structure for yourself?

Customer: replied 2 years ago.
Thankswell im 17 years old and my partner is mid 20'snope i havent been able to find one which is cheap and reliable in sydney- do you know any?
Expert:  Leon replied 2 years ago.

Good Evening.

OK

You have to discuss with him where will this partnership be based as this will determine tax issues,

You will not get away with this cheaply. I would suggest you speak to him and have him send you an agreement, so he bears thee expense of seeing a lawyer and then you have a lawyer advise you on it here and seek changed to protect you.

There are tax implications and also Intelectual property and I think a company structure would be best and you each be share holders in equal shares and you know that the profits are 50/50. Then you have a shareholders agreement on what happens if you cannot agree.

If the company is based here then it is taxed here and you are liable to pay the taxes from profits. If in the US it is tasked there and he is liable.

You and him would be employees and also shareholders.

There are alot of variables and you need the advise.

Customer: replied 2 years ago.
Question:Do we have to set up a company cause at the end of the day its just an iphone app.
Expert:  Leon replied 2 years ago.

Good Evening,

It all depends on how much you expect to earn. Companies are taxed lower than individuals and depending on where you set it up, it also protects assets of yours that you own in your own name.

Which ever you chose the issues are the same. You need to get more detailed advise from an international lawyer. Also you have to register a trademark and also copyright in the US. All of this requires legal expertise.

Customer: replied 2 years ago.
Hmm okay well can i just have a simple 50/50 partnership agreement.and later on if we see that the app is getting successful we will register as a business etc. and have many more agreements placed.
Customer: replied 2 years ago.
you still online
Expert:  Leon replied 2 years ago.

Good Morning,

Sorry I had logged off.

You can do that, but you still have the issue of the cross border tax and protection.

If you then go to a company you will be charged taxes on the sale.

The complexity is still there because the agreement has to cover the laws in both countries and protect both of you.

Expert:  Leon replied 2 years ago.
Good Evening,
I'm just following up our discussion earlier this week and seeing whether there is anything else I can assist you with.
If I have missed anything, or you have any further questions please let me know.
If there is anything else in the future please do not hesitate to ask.
Please do not forget to leave positive feedback.
I look forward to hearing from you.
Regards
Leon