business question: limited corporation 50:50

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business question: limited corporation 50:50

Postby Joey » Mon Dec 01, 2003 12:51 am

Hi everybody!
Who has experience or is in a limited corporation with 50:50 parts?
Do you divide the profit 50:50, too? Or does it depend on how much hours both parts work in the company? Or how much money each partner brought into it?
I will be meeting a tax consultant, of course, too - but sometimes people have good hints or stories to tell from their own experiences - so go ahead, any additional thoughts might help.
Thanx
joey :)
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Postby Raf » Mon Dec 01, 2003 1:15 pm

I can only advise you to get a good lawyer to draw up the contract for you, or if the other party draws up the contract, get specialized independent (!) counsel and negotiate, negotiate, negotiate: every detail counts.

I remember from law school that corporate law is a very complicated matter as far as responsibility, risk, profit etc. goes. The most important issue is who has power of attorney over all the bank accounts (who can get to the cash!): each of the partners individually (which is risky), only with mutual consent of the both partners (which is cumbersome), and all sorts of formulas in between (wich gets really complicated really fast!). Good luck, Joey!
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Postby Sunnyfield » Mon Dec 01, 2003 5:06 pm

Have you considered 49.95:49.95:0.1? The 0.1 should go to an independent person. In case you have a conflict the deciding vote is with that person.

I would also advise to pay yourself a salary. If you cannot pay yourself a salary after 2 or 3 year, you are basically running a loss-making business. This keeps yourself honest.

Good luck with your venture!
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Postby mnemonix » Mon Dec 01, 2003 11:58 pm

If the company is limited remember they're the company's not your profits ! I agree, pay yourselves a salary/wage based on whatever you agree is sensible - hours worked or whatever, between yourselves. Money put into the company is a separate issue to be taken up with the solicitors when drawing up the legal agreements.
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Postby Joey » Tue Dec 02, 2003 7:45 pm

Thank you everyone for the replies. My investor just hopped off board because he only wanted to invest his money, so that he doesn't have to pay too much wealth tax. Meaning, he could only invest in a personal limited partnership. But I deffinitely want a limited liability corporation, because I don't want to be held responsible for the liability with my personal values. Right now I'm looking for a tax consultant who has some experience in gastronomy.
I sure could use some luck, too. My future landlord wants to have a decision next week, great, huh? I have to make a loooot of phone calls tomorrow...

Bye
Joey
"Latte" is french for "you've paid too much for your coffee"
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Postby Raf » Tue Dec 02, 2003 8:07 pm

Good luck with everything joey! I hope we can visit your kaffeehaus when we drive past Vienna this summer to Italy!
This week I am eagerly anticipating the first god shots from my La Spaziale machine....

La Spaziale S1, Vibiemme Domobar (retd), Mazzer Mini Electronic, Behmor 1600 230V
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Postby Joey » Sun Dec 14, 2003 10:47 pm

When everything works out as planned - I could be opening in May/June....
I'd love to meet you there. BTW, every coffee lover I know from the forum is invited to enjoy some coffee at XXXX - nope, ain't gonna tell the name yet ;-) A woman has to have some secrets, hi, hi

Bye
Joey
"Latte" is french for "you've paid too much for your coffee"
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