Business Structure

Apr 27, 2012
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I am hoping someone with a business brain can assist me.

I am looking at going into a business parternship with two other family members - three partners in total.

One party has cash money to invest into the business. This is my father who will be a silent partner.
The other two parites (me and my sister), need to borrow funds of equal proportion and we will both be managing the day to day business operation.

I am preparing a business plan and unsure whether me and my sister should loan the money under the business name and how we should distribute profits.

Any suggestions or comments?



VIP Member
May 12, 2011
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United States
Dad has money that he's putting into the business. You and your sister do not. So first you and she need to borrow. OK well I think it will be difficult for a lender ( a bank) to lend to a business just starting out so I expect you and she will have to borrow the money under your own names (and credit) Try SBA.
Easy to distribute profits: all three of you meet and come to an agreement, put it in writing and all sign it. Done.

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