The Premier Online Community for Real Estate Appraisers!
-
Welcome to AppraisersForum.com, the premier online
community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.
Adding a Business Partner
- Thread starter Alexx
- Start date
glenn walker
Elite Member
- Joined
- Oct 11, 2006
- Professional Status
- Certified Residential Appraiser
- State
- California
Get an attorney and consult a tax professional but if you need advice many on here are Temu Attorneys, accountants, marriage counselors, investment advisers, physicians and will be happy to try and help you.
My only advice is partners are easy to acquire but can be hard to get rid of so adding one is easy it's the exit strategy you need help with because it's like a divorce most get nasty.
Again my advice is a good attorney and tax professional.
My only advice is partners are easy to acquire but can be hard to get rid of so adding one is easy it's the exit strategy you need help with because it's like a divorce most get nasty.
Again my advice is a good attorney and tax professional.
Zoe
Elite Member
- Joined
- Sep 15, 2020
- Professional Status
- Certified General Appraiser
- State
- Tennessee
I don't know what kind of business you run. Have you you thought about a trainee vs a business partner? In other words, the person you hire would be your employee to help in your business. You would still be liable for your employee's actions.
KHS445
Senior Member
- Joined
- Aug 20, 2011
- Professional Status
- Certified General Appraiser
- State
- Michigan
I agree that you should consult an attorney.
That said, I would encourage you to consider setting up a shell company with each of you working under the shell company umbrella as an independent contractor. You could run things like billing, E&O thru the company. Because there may be a difference in income periodically I would have each person contribute a like amount to cover things like rent, utilities, office supplies, etc. and make sure any legal commitments that are made, like rent, is guaranteed by each of you on a 50/50 basis. That way if you end up dissolving the company neither of you is on the hook for all the rent.
Basically, more like cohabitation rather than marriage.
For about 20 years my partner and I worked for a small appraisal corporation, which most of that time included two commercial appraisers and four to five residential appraisers. We all contributed a like percentage and for many years the company covered rent, utilities, office supplies, film and developing cost, E&O, coffee, printers, software, etc. Basically the individual had to buy their own computer. The two commercial appraisers contributed about 40% of company revenue. As time went on and several of the residential guys slowed down or retired the company owner stopped paying for much of anything. The office got smaller, supplies were lacking we were told to obtain our own E&O, pay for our software, pay for Marshall & Swift, etc., but we were still paying a percentage to the company. My partner retired and I decided I was going out on my own since I was working from home 95% of the time. Got nearly a $20,000 raise for no more work.
That said, I would encourage you to consider setting up a shell company with each of you working under the shell company umbrella as an independent contractor. You could run things like billing, E&O thru the company. Because there may be a difference in income periodically I would have each person contribute a like amount to cover things like rent, utilities, office supplies, etc. and make sure any legal commitments that are made, like rent, is guaranteed by each of you on a 50/50 basis. That way if you end up dissolving the company neither of you is on the hook for all the rent.
Basically, more like cohabitation rather than marriage.
For about 20 years my partner and I worked for a small appraisal corporation, which most of that time included two commercial appraisers and four to five residential appraisers. We all contributed a like percentage and for many years the company covered rent, utilities, office supplies, film and developing cost, E&O, coffee, printers, software, etc. Basically the individual had to buy their own computer. The two commercial appraisers contributed about 40% of company revenue. As time went on and several of the residential guys slowed down or retired the company owner stopped paying for much of anything. The office got smaller, supplies were lacking we were told to obtain our own E&O, pay for our software, pay for Marshall & Swift, etc., but we were still paying a percentage to the company. My partner retired and I decided I was going out on my own since I was working from home 95% of the time. Got nearly a $20,000 raise for no more work.