To Partner or Not Partner? That is the Question…

When someone starts a new business, one of the first decisions to make is whether or not to form a sole proprietorship or partnership. Partnerships alter the legal structure of the business, taxes and relationships in ways you must consider before you simply assume the best solution is dividing ownership of the business.

To partner or not partner? Shakespeare meme

There are pros and cons of bringing in others as partners instead of hiring them as employees or receiving loans instead of giving away equity.

Paperwork

It is easier to create a general partnership than form a corporation. The biggest risk this creates is personal liability. A corporation is a separate legal entity that has to have its own financial accounts and takes on the financial and legal liabilities of the company.…

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Options For Handling Personal Debt Before Starting a Business

There are going to be times when people have a great idea to start a business, but still have some financial baggage in their personal monetary history. The question that hits: is it possible to start a new business while being privately in debt? The answer is – it depends. But, at the very least, having a goal for the personal debt is a must before you get too far into the details of your new business venture.

Paying personal debt

So to begin looking at your options overall, consider things like debt consolidation, taking out personal loans, talking to the SBA, getting angel investors on board, and using crowdfunding and crowdsourcing as a modern resource.…

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