business partnership
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business partnership

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This topic contains 1 reply, has 2 voices, and was last updated by Avatar of Anthony Anthony 6 years, 9 months ago.

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  • #4546
    Avatar of poorjohns
    poorjohns
    Member

    I joined in as a partner with my boss who runs a coffee shop and after a year,he got his second baby and now says he cant continue.It is an incorporated business and he wants me to buy his share.He owns the building and the business is named after him.
    If i decide to buy his share or plan on getting another partner,what are the things that i will have to keep in mind? legally and otherwise

    #4548
    Avatar of Anthony
    Anthony
    Moderator

    I don’t know how intimately involved you are with the finances of the company, but if you are looking at taking over, you would probably want to have the books reviewed by an independent accountant, just to make sure that everything is as it seems. Taking on a corporate entity is a big responsibility since you would be acquiring not just its assets, but any debts/liabilities as well.
     
    Presumably you are already a director of the corporation, so check with the Canada Revenue Agency and with the government jurisdiction with which it is registered to make sure that all of its filings are up to date.
     
    Have your lawyer look over the details of the transfer agreement. Make sure to account for any and all assets and real estate currently owned by the corporation. Also, you want to make sure that you secure intellectual property rights if you want to keep using the brands/trademarks. If there are registered trademarks, make sure that they are either owned by the corporation (and therefore part of its assets), or that they will be included in the sale if they are owned by some other party.
     
    If you are bringing someone else in to be the other boss, you will probably want to make sure that you are the partner with the controlling stake in the company. This way the new partner would not be able to muscle you around.
     
    Don’t be intimidated. People do this kind of thing all the time. Just make sure that you go in with as much information as possible, and if it doesn’t look like a good deal for you, then don’t feel bad about walking away.

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