SICSW wrote:Thanks for prompt reply Strong Eagle.
The main reason is that I want this person to invest half the cost of the App as well as share half the profits from it while keeping the counselling business separate somehow.
The above is probably the most "arms length" way of doing business... you have separate finances and a contract that states deliverables and costs between the two of you. Of course, failure to perform on the part of a partner can still lead to lawsuits but your own business cannot be destroyed by the direct actions of a partner in it.SICSW wrote:This is really helpful, thank you Strong Eagle.
So, what I am now thinking is best:
We are not talking about huge sums of money but do you think we should get a lawyer to draw out the agreement?
- stick to the sole-proprietorship,
encourage the partner to set-up her own sole-proprietorship and get her own LOC
create an agreement between the two businesses where her loan for investing in the app entitles her to 50% of profits?
Many thanks!
There are advantages to a pte ltd. First, it tends to lend "gravitas" to your business. It's a real, separate entity. Banks may be more willing to grant you credit and/or credit cards, albeit with a personal guarantee. You may look more legit for customers and financiers.SICSW wrote:Thank you for the advice Strong Eagle.
My friend will set up her own sole-proprietorship and we will write an agreement between the two businesses.
I have heard many times that a company is better because of lower corporate taxes but we would still have to pay taxes on our personal income so I guess it doesn't make much difference, does it?
ysabelle wrote:Hi has anybody here tried to apply an LOC under DP of an SPASS holder?
I want to register a sole proprietorship and apply LOC to work on my own sole proprietorship, but the problem is Im a DP of an Spass holder. Is there any possibility of approval on that? or should I apply work permit for myself?
reply is much appreciated.
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