Rights in a small business start up?
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Rights in a small business start up?
I’m looking to start a business (in corp) with a friend. What paper work should be complete to insure I am registered as 50% owner? Will a note signed by him (and two witnesses) outlying our percent in the business be enough? I want to make sure..worse case scenario I’m not left high and dry if things between us turn sour or something. He has submitted all the paperwork to register the business already.
Asked on May 18, 2009 under Business Law, Minnesota
Answers:
J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
When setting up a corporation with others as partners, you need to realize that the people you are parntering with are like a marriage. You want to make sure that you obtain counsel to help you through this as a corp may not be the best business type of organization you should set up. I dont know what your business is, but you should expore possibly seting up an limited liability company instead if it suits all the parties' interests, including the busienss. Generally, you start by filing articles of incorporation with the secretary of state. the form can be found in the corporations section of the website. it is a simple form to fill out; however, i suggest you all go see a lawyer to consult with him as to whether a corp is the best way to go. I am not saying anything is wrong with it, i just think that you need to be sure that you are making the right moves early on. You can always change the company form a LLC to a corp by filing another form. You want to start on the right foot and not make mistakes that cost you time and money.
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