Business Structure


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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?
 
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kirby

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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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