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 11 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.