# Business structure



## featherbottoms (May 28, 2005)

We are fixin' to start our software development as a full-time, real business.

We have one, possibly two, outside people that will be with us from the start.

We are trying to decide the best way to structure this.

I've been reading about employee owned and worker co-ops.

Any suggestions for online reading or books or your experience?

Debora


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## clovis (May 13, 2002)

Who will own the company? Are the oustide people employees or investors?


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## featherbottoms (May 28, 2005)

clovis said:


> Who will own the company? Are the oustide people employees or investors?


There will be both. Will assume the employee/workers are not the same as investors (although they may be investors, not the same as *investors* though - hope that makes sense).

D.


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## tn_junk (Nov 28, 2006)

Not to seem obnoxious, but get a Lawyer to do a contract for anything you do. I have been in businesses with partners/investors several times in the past. The first time was a fiasco. My "friend" that was my partner left me with beaucoup debt on rental property that we owned. My other adventures included very well written contracts, and no problems. Strong fences make good neighbors. Strong contracts make goods business relations.

alan


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## Riverdale (Jan 20, 2008)

According to your business plan, is this a partnership, LLC or a corparation?

You really should have a business plan for your investors, and will need one for the bank.

Your local extension agent should be able to help you.

If you can, I reccomend the NXLevel class, it was very informative.


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## featherbottoms (May 28, 2005)

Thanks everyone. We do not have a completely fleshed out plan yet, hence the questions about business structure. 

We do plan to have everything written out and legal. We'll be using a financial planner/cpa and attorney to try to make sure we don't miss anything.

The plan is to have the business online and running the first of April.

Thanks again.


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## Harry Chickpea (Dec 19, 2008)

I have a friend who has a deeply serious financial liability from a partnership business that failed. Be aware that if you are the last person standing in a business that is going belly up, the IRS will be hounding you for the back taxes and penalties.


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