Co-Partnership

[thutchis]

Has anyone here been in a what I would call a "co-partnership" with someone selling MB? I am considering "restarting" my MB business and I have a friend that is interested and wanted to do it too, but go in "halves". Not sure how that would work. I mentioned she could just join under me and we could work it together that way.

Any suggestions, ideas, comments, pros/cons you could give me would be great.

Thanks and have a great day!

[AnneP]

I have not heard of anyone doing this. What is your friend's reasoning for not wanting her own business under you? I think you have to consider that first. The COTM is so affordable, I'm a little lost as to why someone wouldn't just go ahead and sign on. Another alternative, would be to have her sign up under you as an Associate to start. Then, she could just purchase what she wants and see how she likes the business.

A co-partnership in the actual product, as opposed to maybe working together and doing vendor show together and that sort of thing, just doesn't make sense to me, unless you're a a couple. Partnerships can be tricky, lead to problems and ruin friendships. Personally, I wouldn't go down that road, especially since you could offer her the no cost Associate option if she is unwilling to sign up for COTM for some reason. Again, I don't really get the logic there. I would talk to her again about joining under you and maybe the two of you working together as a team, if that is something you are interested in.

Good luck!

[mandm'smommy]

Definitely have her sign up under you, and then you could partner up with events, home parties, and other events, and in that way you could share costs.

I would encourage her to do the COTM and she could even choose a different package and I suppose you could share product that way, but then she would have her own website and ability to grow her own team under your leadership.

Like Anne said, if she wanted to dip her feet in the water first, then at least have her be an associate with no monthly commitments, but she really won't grow a business that way, and sharing event costs wouldn't be even then either.

Let us know how it goes, and welcome back to Mia Bella. This is the perfect time to rejoin us!

Melissa

[FlickerScents]

You can work it together. Now, the business can only be in one name but you can work it out so you split profits ect. I have a team mate who she and her sister work the business that way.

[mandm'smommy]

Jennine, how do they work out the taxes? Just curious because that sounds like a great idea and wonderful option.


Melissa

[thutchis]

Originally Posted by FlickerScents

You can work it together. Now, the business can only be in one name but you can work it out so you split profits ect. I have a team mate who she and her sister work the business that way.

Can you give some more details on how they share expenses, etc? How it would work on any sales, etc.

[AletheaAnderson]

Greetings,

If you wanted to work the business together as one entity, you'd need to get a single business license in both of your names as a partnership and a separate tax ID # registered to the business. You would both file a second business tax return based on the profit and loss for the separate business entity.

It most certainly can be done, but most certainly is more work.

I'd recommend one of you joining and then the other join under the one who joined first. This way you each can split the inventory purchases and profits between your own businesses, enabling you to claim your profits and losses on your individual tax returns operating as sole props under your individual tax IDs.

The third option is one person join and let the other person work 'with them' however the person whose social security # is on file is the one who has the tax implications unless they 'hire' the other person as an employee or an independent contractor - that opens a whole other can of worms.

When there is a will, there is a way, but you want to cover your butt in any sort of business transaction and as they say 'don't mix business with family or friends' so the safest bet is one join and the other join under the first person then each contribute separately.

[FlickerScents]

thutchis, email me at FlickerScents@comcast.net and I will be happy to help you.

[AvParties4u]

Alot of fabulous advice posted here..

Good luck to you thutchis.

Teresa

[thutchis]

Thanks Althea.....I don't really want to mix business with friends, etc. I've seen too many relationships end because of business differences. However, when I mentioned what I was planning to do, she mentioned going halves, etc. She wanted to start a business with me and so on. So I guess either way, if I do or don't, I'm doomed.