Well, I`m sure you`re aware of the risks with going into business with a good friend. You should go into your venture knowing that at the very least, your friendship will be dramatically changed, and that there`s a better than average chance that your friendship will suffer as a result of your business together.
That being said, if you`re still willing to take the plunge, your friend`s bad credit history may be a sign of her challenges in running a business. But if you establish a separate business entity like an LLC or corporation, the general rule is that the owner`s personal assets and liabilities are not at risk by the business` activities.
One twist to this is that if you`re seeking a loan, or plan on leasing real estate, a creditor or landlord will typically want personal guarantees from the owners of the new business. If your friend has a poor credit history, that may complicate the process.
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The Legal Considerations of Starting an Online Business