Legal Question in Business Law in California
I'm trying to start up a bakery/coffee shop with a friend, but I would like to keep it 2 separate entities operating under one roof, has this ever been done successfully and if so what is the best, fairest way to split up liabilities and percentages of profits made, knowing the bakery side is likely going to be more work? I think I should only be liable for my start up costs on repaying the loan. As far as him taking a percentage of my sales, my idea was instead to charge me a rent for the kitchen space i am using, like a sub lease.
2 Answers from Attorneys
There are a lot of issues here and you should sit down with an attorney. You may unintentionally form a partnership if you are sharing revenues, even if you try to have two separate businesses. You may want two separate loans. You may have lease liability issues.
Best,
Daniel Bakondi, Esq.
415-450-0424
The Law Office of Daniel Bakondi, APLC
870 Market Street, Suite 1161
San Francisco CA 94102
http://www.danielbakondi.com
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And the consequences of a partnership are significant, including personal liability on your part for your partner's actions and liabilities. Be very careful to document your relationship to avoid those potential liabilities.
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