Forums: Discussions for entrepreneurs and small business.

My friend owns a California corporation which is an oil change business. He has been ran the business for the past one year and currently needs a partner. He needs $40k and in return he is offering a portion of the business.

My question is:

1. Does he need to change the business structure to a partnership if I join him?2. What sort of things should I be carefull about?

Any advice will be greatly appreciated.

Thanks.

Unless you want the second year to go like the first, I`d recommend being careful about how the business is run! Obviously some things need to be changed in the business model and practices or you`ll end up losing your money too! (More money isn`t always the solution ... )

If the $40k is to "float"  the business (debt management), as appoosed to using it to improvement upon something - beware! Try seeing for yourself what`s going on by working side-by-side for awhile. It`s sounds to me that $40k is a lot of money for a service business of this sort. With $40k, you can start your own oil-change busines. Carwash/oil change business`s are "hot" these days. Is there room for that?  Coin-operated or otherwise.

Thanks alot for all the responses.

There is already a coin operated car wash area but we plan on adding a detailing business. We have a total of 6 car wash bays so 4 will stay coin operated and the rest will be used for detailing.

As far as the partnership is concerned does any one know if a signed agreement between me and my friend is enough to protect my interest in the S-Corporation or do I need to make sure my name is reflected on the lease and the added to the corporation?