I'm going to get a partner soon, to expand my business, and I must write a contract for us to sign. Does anyone know a good site that has some contract templates?

I took a course at writing contracts, but don't have enough time nor do I feel like writing the whole thing from scratch... LOL!! :D

I have a copy of the Partnership Act, so please don't come and tell me I don't know what the hell I'm doing... LOL! :D

http://office.microsoft.com/en-us/templates/CT101172451033.aspx

If you're going to be successful in your business, you have to know how to spend your money wisely. It is wise to have a professional attorney handle your contracts, unless your "business" is a lemonade stand.

If you must do a partnership agreement yourself, see if you can find a few examples in legal form books. Go to a law library. Really, though, you should hire a commercial lawyer.

I'm going to get a partner soon, to expand my business, and I must write a contract for us to sign. Does anyone know a good site that has some contract templates?

I took a course at writing contracts, but don't have enough time nor do I feel like writing the whole thing from scratch... LOL!! :D

I have a copy of the Partnership Act, so please don't come and tell me I don't know what the hell I'm doing... LOL! :D

I'm with Fraggle all the way on this one. Don't be a cheapskate and try to cut corners by doing it yourself - it will wind up biting you sooner or later. The misuse (or inclusion/omission) of a single simple word can totally nullify exactly what you trying to protect. Stick to YOUR own profession and have a professional do their thing for you. (Even after four full years of med school would you try to remove your child's appendix yourself???)

I'm going to get a partner soon, to expand my business, and I must write a contract for us to sign. Does anyone know a good site that has some contract templates?

I took a course at writing contracts, but don't have enough time nor do I feel like writing the whole thing from scratch... LOL!! :D

I have a copy of the Partnership Act, so please don't come and tell me I don't know what the hell I'm doing... LOL! :D


NEVER WRITE YOUR OWN, HIRE A LAWYER

lawyers=cost money

lawyers=cost money

But a bad contract could cost you your business! Is it worth the risk to you?

lawyers=cost money

And doctors cost money, too. Are you going to refuse their services also when you need them????

This is a clear case of (paraphrasing here) the guy who acts as his own lawyer has a fool for a client.

Another thing most lawyers have is a set price like 300.00 to 500.00 to write

most simple contracts so you can negotiate with them on their costs.

lawyers=cost money

Business expense = tax write-off

I'm going to get a partner soon, to expand my business, and I must write a contract for us to sign. Does anyone know a good site that has some contract templates?

I took a course at writing contracts, but don't have enough time nor do I feel like writing the whole thing from scratch... LOL!! :D

I have a copy of the Partnership Act, so please don't come and tell me I don't know what the hell I'm doing... LOL! :D

I have been Self Employed for over 10 yrs. Do NOT skimp on this kind of thing. It is well worth the money in the end to pay a LAWYER and have GREAT ACCOUNTANT.

Plus as someone else said. It is a business expense, write off.

Positive language.

Business expense = tax write-off
HAHAHA!! I love that one... :D

Well, guys, sure hire a lawyer.... easy to say... but let's see......

1) just moved to this city, don't know anyone
2) my wife's 9 months pregnant
3) just spent a ton of money moving
4) still have to pay off some government bills
5) still have to pay off immigration lawyer

I mean.... kinda tough to get another expense on top of the ones that I already have... LOL!!! I already have about $2000 that I'm putting aside for business and unavoidable expenses not including the regular ones.... yuck... and my wife wants to spend $500 on a shopping spree on chirstmas.... :rolleyes:

But whatever, I do agree with you, I should get a lawyer. But maybe I could write it and have my father-in-law review it... (he's a retired lawyer). I have till thrusday to write this thing and he will come visit on thrusday, so that would work out well, I think.... :scratchin:

But maybe I could write it and have my father-in-law review it... (he's a retired lawyer

Just ask HIM to write it.

That's a good idea too.... :D

What kind of business?

What is the nature of your familiarity with this potential new partner?

What is the partner investing in the business -- the buy-in --to be able to legally share in the business's future profit?

Why can't your cost of a lawyer -- the best advise, so far -- be paid back by a portion of the potential partner's buy-in monetary investment in his future profit?

What are you doing taking on a partner in a business that can't already support itself, yourself, your wife, a kid and a partner and his monetary needs?

I'm not seeing a rational business model materializing from the ether.

C Corp; S Corp; LLC; LLP?

Start up businesses can barely support themselves, if at all, let alone support their owners.

It normally (statistically) takes years to grow a business before it can support itself and the owner(s).

Sucking all the income out of a small business to support a growing family leaves the small business short of growth capital.

Supporting a family with a small business always on the edge of failure isn't the best business model, or family income source.

What kind of business?
Sole proprietorship at the moment. But I will be changing it to a corporation or LLC soon. This is particularly important because I want to create limited partnerships while still being protected from liability.

What is the nature of your familiarity with this potential new partner?
I'm not quite familiar with him at the moment. Hence why I'm first having a meeting with him and why I'm writing the contract. I will also be watching him very carefully. I will spell out a few rules in the contract as well and consequences of not following those rules, etc.

What is the partner investing in the business -- the buy-in --to be able to legally share in the business's future profit?
Not much. Just his time, basically. He will also be liable for any work that he does- that is, he will be a general partner. The plan is for him to get in easily so that I can keep control of ownership and high profits while still be protected by certain terms in the contract.

Why can't your cost of a lawyer -- the best advise, so far -- be paid back by a portion of the potential partner's buy-in monetary investment in his future profit?
You mean making him pay for the lawyer? Huumm... that might be a good idea.... :scrachin:

What are you doing taking on a partner in a business that can't already support itself, yourself, your wife, a kid and a partner and his monetary needs?
Why not? I can certainly support myself with the business. Besides, growing the business is THE way to make things happen. I won't be able to create a business that support itself, myself, my wife, my kid and my partners without taking risks! You see... the greater the risk the greater the return.... and the greater the knowledge, the lower the risk, so in order to maximize return and minimize risks, one must be knowledgeble of the potential risks and systematically decrease or elminate the potential of such risks. One way to do this is by writing a contract. A better way to do this is by having it reviewed by a lawyer. An even better way to do this is by having a lawyer writing it for me. However, if the later is used, I must be fully involved in the process as some situations may apply more to me then to other of the lawyer's clients. So either way I must be highly involved in the process of writing the contract. Hence why I'm considering to write it and having it reviewed.

I'm not seeing a rational business model materializing from the ether.
That's probably because I didn't SHOW you my business model in the first place, maybe...? :rolleyes:

Start up businesses can barely support themselves, if at all, let alone support their owners.

It normally (statistically) takes years to grow a business before it can support itself and the owner(s).

Sucking all the income out of a small business to support a growing family leaves the small business short of growth capital.

Supporting a family with a small business always on the edge of failure isn't the best business model, or family income source.
How do you know this is the case with my business?

You see.... the reason why I need partners/employees is because I spend too much time IN my business as opposed to ON it. I'm certainly able to pay my bills with it. Right now, a couple of clients give me more then enough money to support my family. I currently have 4 clients and I haven't even started with the 4th yet. The 4th is giving me so much work I need the help of a partner.

Working full time, I make the following money:
At $400 a client, 20 clients maximum capacity: $8,000
With two partners, spliting 50% with them, at maximum capacity, with NO WORK from me other then management: $8,000

$8,000 with little to no work.... huumm.... sounds good to me.... :D

Currently I charge $30/hour, which adds up to $400 per month per client. Similar competitors charge $50/hour for work of less quality. With current capacity (due to retroactive work needed) I'm perfectly capable of making about $3,000 a month. I need about $1,600 to survive. So it sounds like it's perfectly possible for me to grow my business.... :rolleyes:

Truthseeker...but on average how much exactly do you make? (after and before taxes)

I'm currently not paying taxes, basically. I will have to "pay" them, yes... but I have so many credits that I will probably not need to pay anything for a while.... :D

Last month I made about $1,500 and I only worked about 60 hours the whole month, plus I gave a $10/hour discount to one of my clients. So... not bad for working an average of 15 hours per week.... LOL!!! :D

so you only make $1500 and thats without paying taxes. and everything else is dreams and future ambitions...I see...

You see.... the reason why I need partners/employees is because I spend too much time IN my business as opposed to ON it.
IOW, you know what you have to do to make money doing what you know how to do, you just don't know how to operate business-like when it comes time to account for your income-producing activities with respect to your your municipal, state and federal liabilities.

It sounds like you'd be better served taking the guy on as an independent subcontractor--giving him a 1099-Misc. at the end of the year, letting him be responsible for his own tax obligations--and not sharing your profit with someone who isn't risking anything up front to be able to share in the profits of your combined efforts (mostly yours) and doesn't deserve any more value from his effort than he's willing and able to personally contribute to your business going in.

Pain is said to be the master of education. Pucker up.

I'm currently not paying taxes, basically. I will have to "pay" them, yes... but I have so many credits that I will probably not need to pay anything for a while.... :D
You're a sole proprietor. All income after expenses is subject to self-employment tax: 15.3%.

If you're taking after-expenses income out of the business, it's subject to self-employment tax.

Self-employment tax is payroll tax--Social Security and Medicare taxes. Payroll tax is the Federal government's money. Not paying payroll tax is a federal crime that will begin with civil penalties of late-filing and late-payment penalties and interest, but soon will escalate into felony tax evasion.

Each tax return you sign is it's own potential felony tax evasion conviction.

Feeling lucky?

IOW, you know what you have to do to make money doing what you know how to do, you just don't know how to operate business-like when it comes time to account for your income-producing activities with respect to your your municipal, state and federal liabilities.
Probably because I'm not specialized in law.... :D

It sounds like you'd be better served taking the guy on as an independent subcontractor--giving him a 1099-Misc. at the end of the year, letting him be responsible for his own tax obligations--and not sharing your profit with someone who isn't risking anything up front to be able to share in the profits of your combined efforts (mostly yours) and doesn't deserve any more value from his effort than he's willing and able to personally contribute to your business going in.
What do you think I'm going to do? :rolleyes:

You're a sole-proprietor. You business's tax ID number is your social security number.

Any tax liability the business is responsible for places all of your personal assets at risk of loss to legal judgement(s).

Your house, your car(s), your personal bank accounts, your personal investments, your family's personal belongings, garnishments on your wages from employment (and your spouses if you file a joint tax return), future tax refunds, etc.

I'm still not seeing a terribly survivable viable business model going on there.

You're a sole proprietor. All income after expenses is subject to self-employment tax: 15.3%.
That might be in the US, but not here. Sole proprietors in Canada pay just as much as employees (well, less, because they have deductions... :D).

If you're taking after-expenses income out of the business, it's subject to self-employment tax.

Self-employment tax is payroll tax--Social Security and Medicare taxes. Payroll tax is the Federal government's money. Not paying payroll tax is a federal crime that will begin with civil penalties of late-filing and late-payment penalties and interest, but soon will escalate into felony tax evasion.
Oh God.... As I said, the rules down there are a bit different. I do have to pay CPP, which is a kind of payroll tax, I'm very much aware of that. And, of course, if I have employees I also have to pay payroll taxes. But if I only have independent contractors I don't need to worry about that... :D

Each tax return you sign is it's own potential felony tax evasion conviction.

Feeling lucky?
I don't think you know what the hell you are talking about. :rolleyes:

You're a sole-proprietor. You business's tax ID number is your social security number.

Any tax liability the business is responsible for places all of your personal assets at risk of loss to legal judgement(s).

Your house, your car(s), your personal bank accounts, your personal investments, your family's personal belongings, garnishments on your wages from employment (and your spouses if you file a joint tax return), future tax refunds, etc.

I'm still not seeing a terribly survivable viable business model going on there.
Well, DUH! As I said before, I'm planning to incorporate. Besides, those legal risks are only if I get sued.

But anyways... this is a waste of time. I think you forgot you are talking with an accountant....

Well, DUH! As I said before, I'm planning to incorporate. Besides, those legal risks are only if I get sued.

But anyways... this is a waste of time. I think you forgot you are talking with an accountant....

Actually, I think YOU are wasting your time. If he's not going to be a partner NOR an employee - just merely a hired contractor - what's all the fuss about?

That might be in the US, but not here. Sole proprietors in Canada...
Ah. Okay. Never mind.

I forgot you were in the Great White North.

Still, your circumstance is the default position for newbie business startups in the U.S..

Valid words of warning still remain herein.

Carry on.Tuh tuh.

Well, DUH! As I said before, I'm planning to incorporate. Besides, those legal risks are only if I get sued.

But anyways... this is a waste of time. I think you forgot you are talking with an accountant....
Umm, I speaking as a 14-year self-employed tax accountant. ;)

Take this tissue; you're a little wet around the ears. :P

But anyways... this is a waste of time. I think you forgot you are talking with an accountant....
Shall we entertain the notion that you claim the authority of a professional practitioner of accountancy but display a cavalier lack of professional ethics by admitting to situational--perhaps habitual--tax evasion?

Just saying...

Speaking the truth you seek...

Actually, I think YOU are wasting your time. If he's not going to be a partner NOR an employee - just merely a hired contractor - what's all the fuss about?
SURE! Let's hire an employee without doing a backgorund check! He might be a murderer, but who cares, RIGHT!? :D

Still, your circumstance is the default position for newbie business startups in the U.S..
Really? Humm. Well, please tell me more.

Umm, I speaking as a 14-year self-employed tax accountant. ;)

Take this tissue; you're a little wet around the ears. :P
Well, but you are in the US though. We have a whole tax act here of our own.... :)

Shall we entertain the notion that you claim the authority of a professional practitioner of accountancy but display a cavalier lack of professional ethics by admitting to situational--perhaps habitual--tax evasion?
Which tax evasion? This is the first time I ever earned any income, so I don't owe anything. Plus, as a sole proprietor, I pay taxes very much like an employee does. I just need one extra form. I don't know how it goes there, but here that's all that you need. Why do you think I'm evading taxes? I don't even know how I could possibly do that right now given that I have over $15,000 worth of tax credits... :D

SURE! Let's hire an employee without doing a backgorund check! He might be a murderer, but who cares, RIGHT!? :D

That's a very stupid approach since NO ONE has even mentioned background checks before. And what the heck does that have to do with a contract anyway????????????:bugeye: Those are TOTALLY unrelated issues! Sheesh!!!

TruthSeeker;1618084: You'll make an interesting project.

That's a very stupid approach since NO ONE has even mentioned background checks before. And what the heck does that have to do with a contract anyway????????????:bugeye: Those are TOTALLY unrelated issues! Sheesh!!!
What do you mean unrelated?!? Maybe it is YOU that is ignorant of the fact that the relationship between an employee and an employer IS a contractual relationship!! So are all the receipts that you get whenever you purchase something. Those receipts are contracts between you and the vendor. Did you know that? :rolleyes:

I'm not the one that is badly informed here....:rolleyes:

Any business relationship here is relevant. You can't do business with whoever, right? You need to know what kind of person you are dealing with and if that person is benefitial to your organization, be that person an employee, a client or a partner!

TruthSeeker;1618084: You'll make an interesting project.
Uh? :crazy:

Uh? :crazy:

the aliens need you Truthseeker for their transagalactic entrepreneurship accountant deals.

True... true.....


...
Where did they go, btw? :bugeye:

True... true.....


...
Where did they go, btw? :bugeye:

they logged off...

Oh.... too bad for them.... :D

Ok, so here's the rough draft.... what da ya think? :D


"Contract between A, the “owner” and B, the “subcontractor”.

For the purpose of....

This contract becomes in effect on DATE and end at the discretion of both parties, restricted by the terms below.


B agrees to the following terms:

1)Payment goes here....
2)No control of company.
3)May use own tools or owner's tools, whichever preferred
4)Must report all activities to owner. Every time one month is completed, send to owner for review and continue on with other work. If any questions or concerns regarding someone's books or own responsibilities contact owner immediately.
5)Assume all responsibility for own work and any liability that comes with it.
6)Must not break any laws while working on my behalf.
7)May become a partner and gain greater control of company later on, depending upon agreement with owner and enough financial investment in the company
8)May terminate contract, but only with 2 months prior notice.


A agrees to the following terms:

1)Pay B immediately upon receipt of client's money
2)Be reacheable
3)May terminate contract with no less then 1 month prior notice or immediately for any reasonable reason such as the failure to follow the above terms "


Of course I hid some stuff there for you. I'm "A" and the other guy is "B", I specified the purpose and the payment, which you don't see here....

Do you think I'm forgetting any terms?

(No, this is not the actual contract, just a rough draft of the terms I will be negotiating... I will reword it.)

#3....may use own tools or owner's tools...


...that might get out of hand...

What do you mean unrelated?!? Maybe it is YOU that is ignorant of the fact that the relationship between an employee and an employer IS a contractual relationship!! So are all the receipts that you get whenever you purchase something. Those receipts are contracts between you and the vendor. Did you know that? :rolleyes:

I'm not the one that is badly informed here....:rolleyes:

Any business relationship here is relevant. You can't do business with whoever, right? You need to know what kind of person you are dealing with and if that person is benefitial to your organization, be that person an employee, a client or a partner!

You are really, really streching things here. Back to your original question, you HAD BETTER get yourself a lawyer!!!!!:bugeye:

You are really, really streching things here. Back to your original question, you HAD BETTER get yourself a lawyer!!!!!:bugeye:
I'm paraphrasing lawyers who I've known. You have no idea what youa re talking about, do you?:rolleyes:

#3....may use own tools or owner's tools...


...that might get out of hand...
Do you think I should say he must use his own tools?