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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