Forums: Discussions for entrepreneurs and small business.

I recently embarked on a new online venture and was in the process of interviewing potential customers for insight into what I should build feature/function-wise.

One person I spoke to in particular would be very valuable resource for me for: functionality advice; connections influence over other potential customers; as a pitchman at conventions that he already attends; general marketing advice in the industry.

I had only contemplated starting a company where I have 100% ownership.  Now I'm faced with the dilemma of giving some level of ownership/incentive to be my ally and resource and I don't know how to decide what is fair for both parties.

Creating a partnership adds a whole other level of complexity to my startup that I was not prepared to undertake.

Any thoughts on what other options are out there?

In addition to bringing this person in as a business partner, you also have the options to hire him as an independent consultant (with payment for services, commission, or both) or as an employee (again, salary, commission or both).

As far as partners, if your business is an LLC, you have almost unlimited options as far as both the ownership percentage as well as the distribution of profits (and those two things do not have to be exactly the same).

The reality is that fair in this situation is what the two of you can equitably negotiate. Be sure that whatever you choose, you have also thought about and included provisions for one of you leaving the business (both voluntarily and involuntarily).

Good Luck!

Molly Donaldson

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Start Here. Go Far. LaunchX

Partnership is good for business because in any business there is risk of money and partnership help you to lost your whole money .

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