Posted by Harley-CA on March 21, 2001 at 18:56:57:
These sort of deals are done everyday. The trick is structuring the deal correctly. There are two ways I would recommed you take a serious look at. They are:
Joint Venture Partnership
Joint Venture Silent Partnership
Essentially, these are the same, with the exception that in the “silent” variety, the partner just supplies the money but has no “managerial” input.
Joint ventures can be formed between individuals, between two or more corporations, between individuals and corporations, etc. Any taxes on profit pass through the joint venture right to the partners themselves and the partners are then taxed on those profits individually for their part of the profits only.
Joint ventures allow for all of the details of the partnership to be spelled out in black and white so that everyone is clear on what is expected of them.
You can find a sample Joint Venture agreement at:
Or you can simply do a search on the Internet and look at various real joint venture agreements to get some ideas and craft your own.
With that said, I HIGHLY RECOMMEND that you talk to an attorney to have a joint venture agreement drafted. Be sure to have all the details worked out with your potential partner beforehand and just give this info to the attorney to put in “legaleze” for you.
Hope this helps.