The Small Business Tax Help Blog

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Question: Adding a 50/50 partner to Start up Business?

Hello all,

About 5 months ago I set up an LLC in the state of Idaho. A friend (in texas) decided to partner with the new business. We haven’t officially started yet. It’s a dotcom business.

My questions to you :

Where do I start as far as paperwork?

Do I go change the LLC first?

Do I need to put him on the EIN paperwork?

Where would I begin as far as legal contracts? What kind would I need?

Do we need to set up a dba, another business address in Texas, or something similar if he is doing the work in Texas and I’m here in Idaho? Or is just having the corporate office in Idaho ok since its an online business? Would it better better to set up an office address there?

I would greatly appreciate any advice/tips. Thank you kindly.

Best,
Jason

Answer: First thing you need to do is reach an operating agreement. Operating agreements govern issues of control, key decision-making, and buyouts of shares if one of you decides/needs to leave the company.

Once you both sign the agreement (don’t leave it unsigned), you can change the LLC.

I’m not an attorney but I doubt you need to set up separate corporate entities, unless there is a tax reason to do so. For example, Texas has no income tax.

I strongly recommend you do not do this alone. Hire an attorney who works for you. Your partner should do the same. A couple thousand bucks’ investment now can save you from much more losses down the road.

Unsolicited advice – 50/50 relationships are very tricky. When you disagree, you can paralyze and kill the company. In some states, when you have a true impasse, a judge can force the dissolution of the company.

Steve Jobs’ 2005 Stanford Commencement Address

Senate Session 2011-03-03 (14:22:03-15:34:37)

The New 2009 Tax Deduction for Car Buyers

International Forecaster July 2011 (#3) – Gold, Silver, Economy + More

Government debt will be in the vicinity of $1.5 trillion this year. Ever since May 16th short-term debt has been frozen at about $14.3 trillion. Up until May 16th the year-to-debt fiscal debt was $783.135 billion.

Presidential Press Conference on Tax Cuts and Unemployment Extension

Question: What steps do I need to take to start a small massage business going to other peoples homes in Pennsylvania?

I have already done the schooling and have been doing massage for 7 years but never had my own business. What c=kind of steps do I have to take. Can I just start going to people’s homes and then just keep records when it comes to tax time enter my earnings and pay taxes on them? Not sure where to start. I am legitimate so no smart remarks please. I only plan on Massaging women bc sometimes men usually tend to put you in awkward situations. I have been through too much of that in the past. The only way I would massage a man is if his wife or significant other would be in the home. Thanks for your time!

Answer: Get a business license and advertise.
A simple monetary book to keep track of payments, expenses.
Keep track of mileage, gas, tires, oil and repairs for deductions. Keep your reciepts.
I would avoid using an internet connected computer to record activities and money. You could also partner up with a man and hit clients homes at the same time thus avoiding embarrassing situations and other hazardous environments. Also include in your ads, “Satisfaction. Not happy endings” or something similar that shows a quality of service.

Mosney PLC – Interim Management Statement

Mosney PLC – Interim Management Statement

1st HST Forum in Dawson Creek: David Robertson on BC’s Tax Sovereignty under the HST