More then just Bean Counters More then just Bean Counters More then just Bean Counters

More than just bean counters

From the blog

Choose your partner very carefully

Choose your partner very carefully

So you’ve decided not to be a sole trader. How about a partnership?

This business structure permits income splitting (e.g. between spouses). Though fees are involved, a partnership is relatively easy to set up.

Yet it’s not a separate legal entity – so your personal assets remain at risk. You and your partner/s are jointly and severally liable for each other’s actions.

Which brings me to my main point: choosing the right partner. Be very careful who your partner is. Do you really know them?

Before I moved to electronic document storage, I had a box for each client’s files. And the stories those boxes could tell of business partners not getting on!

First, there was the honeymoon. Then, reality set in. Finally, one partner wanted to go left and the other right.

To save yourself this pain, check with your advisors before you commit!

2 comments

  1. I certainly agree that picking a partner to create a business partnership with is a decision that needs to be made after a lot of consideration. Just like when a marriage has problems being in a partnership with your spouse can have problems. When your partnership ends you may find yourself dealing with the end of a business as well as the end of the relationship. That can be an double the headache and heartache. Just like in a marriage you need to be financially aware of what is going on in your business.

    1. Hi Theresa

      Hey thanks for you comments. Yes we are on the same page.Over the years i have had many practical examples. I guess that is why I am still a sole trader.

      Can i ask how you came across us?

      Thanks

      Greg

      Greg