Legal Question in Business Law in Florida

What you are proposing is actually more complicated than you realize. There are probably several options available to you, but you should set things up correctly to avoid problems in the future.

The actual establishment of a business entity is simple and most anyone can do it. The problem is that most people do it wrong. The state could care less how you organize or structure your agreements, and in most cases there is no requirement that you establish a formal business entity, or that you establish it any particular form, but you would be irresponsible to not set things up the right way.

There are thousands of horror stories related to how partnerships go bad, and trust me when I tell you that it costs a lot more than $1,000.00 to fix even the simple problems that arise. You really should hire an attorney to assist you and your partner in drafting the agreements and protecting your individual and business interests.

I know, your first response is, "we can't afford it". If you truly can't afford to hire an attorney to assist you in the beginning stages to make sure that your interests are protected, then I would suggest that you seriously reconsider forming a partnership. Businesses cost money to operate and there are no exceptions, and legal fees are generally only a small portion of that cost. However, if you don't set it up right from the start, the legal fees to fix the problems will most definitely be very high in comparison.

Will it cost you money, YES. No one works for free, including attorneys. You will have to pay for the education and experience that an attorney provides you. The question is how much will it cost to fix the screw ups?

Most attorneys I know will charge a significant retainer just to take on a business/partnership dispute and the hourly fees will not be small either. Also, the costs related to liability issues is very high, if someone sues you. If your business is not set up and run properly any judgment creditor may be able to attach your individual assets as well as any assets in the business.

I don't mean to be harsh, but I have seen too many people make the mistakes that you are setting yourself up to make. Attorneys make a lot more money cleaning up mistakes than they do in preventing them from happening.

You have a few options and can create an agreement that governs your co-ownership rights and responsibilities. The attorney who answered you was correct in stating that you should seek the assistance of an attorney. Not having one for choosing a business structure or creating business contracts could cost you much more in the long run. Do yourselves a favor and contact a professional. If you are worried about fees, be sure to ask up front. Some attorneys charge flat rates, while others bill by the hour.

Regards,