Doing the Legwork (Question About Buying a Business)
by DawnFL, Window Shopper
- Created: February 22, 2009, 2:23 pm
I am in FL doing the leg or shall I say internet and phone work for my Daughter who is buying a business. She is not a novice in business but is going a step further than she had been and I have raised questions to her. Right now with the physical labor involved on her end, she has asked if I could research for her.
Currently she is a sole proprietor with an EIN number in MA. She will be owning a full business and until the sale is complete there is a partner involved.
Question............how can she protect her concept of the business while still running under someone with a larger portion of the business? Should she wait until she owns it as the controlling partner? Right now she will have an extremely large salary plus percentage. When she buys it will turn around so that the controlling partner will only draw that same percentage minus the salary because he will not be working in the place at all nor does he now.
Right now the deal is, she pays the rent, she runs it as her own however it is currently in the red which is one of the reasons she does not want full ownership at this time anyway. The estimate is to pay in full within six months time.
Although the parner is ethical etc. I trust no one anymore. I have seen her burned before and this is her baby. It is dedicated to celebrate my Dad's life although may not show it to others as much as it means to us. To lose it would be devastating. The man is not in the business, claims to have no time and does not want involvement as he has a job and large family he wishes to spend time with BUT.......since she stepped in only a few weeks ago and started her magic I feel something I do not like even though I am not there. He seems bitten by her enthusiasm and getting much more involved than he ever had been in the seven years prior that it existed. I am afraid for my Daughter. People in the same line of work that Dad was in are already talking about the place because she is who she is and her previous reputation in business. No doubt she will make a success of it.
So, I see all the pitfalls of her buying it the way she is but there is no other way. My major question is.......HOW do we protect the concept, names created by her for the business, logos etc.
Can she use her sole proprietorship to dba as the new place or should she LLC this? I suggest LLC when it is hers to protect it. I am not a small business expert though..........I found you here so would appreciate input.
A Grateful Mom
- Community Home
- Discussion Boards
- Tell Us...
- Discuss Popular Topics
- Developer Resources
- Social Media